It was a bankruptcy in everything but name.
Reader comment on: Hank Greenberg on AIG
Submitted by Lyle (United States), Jan 5, 2011 00:12
Given that the company was about to go bankrupt the Fed treated AIG like banks are treated by the FDIC, no shareholder vote is needed to take over a bank (Not the holding company the actual bank). Essentially this is what the resolution authority in Dodd Frank does, from now on a systematically important institution can be taken over if need be and the shareholders are just plain wiped out.
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