Sep 232008
John Sununu et al point to AIG and say insurance regulation should be a federal function, not a state function with 50 different regulators.
OK, here’s a question. I understand that AIG sells two types of policy. One is insurance, which falls under 50 different state jurisdictions. The other is classified as securities, and is regulated by the feds.
Which one of these is the cause for its financial difficulties?
This is not a rhetorical question. The Sununu article does not answer it.
A late edit: This article from the New York Times suggests, but does not tell us for sure, that it’s the securities business at AIG that caused all the trouble.