More Videos
- FTSE, DAX, CAC Seen Lower, Greek Deal Delayed
- The Secret Lives of Traders—Seeking the Next Hot Thing
- FBI Investigated Steve Jobs Drug Use
- Strip Greenspan of His Knighthood: SocGen Strategist
- China January Trade Surplus Soars as Imports Crumble
- Markets Finally Get Greek Deal —So Where's the Rally?
- Warren Buffett: Stocks Will Outperform Gold and Bonds
- Get All the Latest Out of Europe Here
- New iPad Next Month? Apple Nears $500
- New York Fashion Week Hits the Runway as Colors Pop
- Mulling Buffett's Stock Advice? Get in With REITs: Fund Managers
- LinkedIn Earnings Bode Well for Hiring and Social Media
- Top Five Mistakes to Avoid in Online Dating
- Victor Cruz ‘Understands’ Gisele's Super Bowl Frustrations
- Tamminen: The United States of India
- Unusual Volume: Taleo Jumps After Oracle's $1.9 Billion Offer
- Warren Buffett: Stocks Will Outperform Gold and Bonds .. and They're Safer 'By Far'
- So Now You Can’t Give Microsoft Away?
MOST SHARED
- Tesla Unveils First SUV: Model X
- Strip Greenspan of His Knighthood: SocGen Strategist
- Sony's Hirai to Extend PlayStation Strategy, Cut Costs
- India's Tata Steel Posts First Quarterly Loss in 2 Years
- China January Trade Surplus Soars as Imports Crumble
- Steelers' Antonio Brown Spends Super Bowl Week with Twitter Fan Turned BFF
- Top Five Mistakes to Avoid in Online Dating
- Jobs You Can Do Forever
- Zynga, Hasbro Partner to Make Toys, Games
- Warren Buffett: Stocks Will Outperform Gold and Bonds .. and They're Safer 'By Far'
MOST POPULAR
HOT ON FACEBOOK
'Extremely Strong' Interest in AIG Assets: Dinallo
Text Size 
Insurance companies have gotten away from their core competencies and that is "dangerous," said New York State Insurance Superintendent Eric Dinallo.
"There is a theory that diversification of financial services activities gets you risk management, but it is only true if you stay within your core competencies," Dinallo said, in an interview with CNBC.
(For the full interview and more detail on the talks that led to the AIG rescue, listen to the attached video.)
"If you drive a car, and then also think you’re going to be safer while you put on your makeup, do the Blackberry and drink a cup of coffee, have a conversation – that is not a way to drive a car," he said. "I think it is true that insurance companies have to get better at focusing on their core competencies."
AIG Shareholders' Slow Pain |
With AIG trading at $2.50 a share Wednesday morning, the market cap is now at about $6 billion, down from $20 billion just a week ago; down from $75 billion a year ago; and from $100 billion in 2000, showing that shareholders were already in deep trouble. Here's how other companies compare: - Bed, Bath & Beyond is worth more |
Dinallo's comments come in the wake of negotiations that led to an emergency $85 billion rescue of American International Group. That plan is aimed at staving off a bankruptcy that had the potential to throw world markets into further turmoil.
According to Dinallo, the plan gives AIG enough time to engage in a "rational unwinding" of the business. However, he would not rule out any further need for capital.
According to Dinallo, the reason that Chapter 11 was rejected as an option for AIG, was that there could have been a perceptional crisis of confidence that could have made the situation worse for the insurer.
 |
"The orderly unwinding of the company even more enhances solvency," Dinallo said.
He anticipates that there is "extremely strong" interest in AIG's [AIG
Loading...
()
] core assets from top-tier companies.
Throughout this process, Dinallo said that holders of AIG policies and annuities were always safe.
"I believe that the policies were always safe," he said. "There was always core solvency of the insurance companies and they are now even more enhanced because no one has to worry about any types of withdrawals or runs on the insurance company."
- Many have called to abolish the Federal Reserve. But what would happen if it was dissolved for good?
- Entrepreneurs have increasingly been buying back their companies over the last three years.
- Where are the best city locations for singles to take the online dating plunge?
- A Steelers fan spent a week with wide receiver Antonio Brown- and it was all due to tweeting.
- Here’s a look at the woman behind the newest collectible toy that kids love.
- Grab a brew—or not—and click ahead to experience the world’s most highly rated beers.
Data is a real-time snapshot *Data is delayed at least 15 minutes
