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Financial Crisis Inquiry Commission

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The Financial Crisis Inquiry Commission ( FCIC ) was a ten-member commission appointed by the leaders of the United States Congress with the goal of investigating the causes of the financial crisis of 2007–2008 . The Commission has been nicknamed the Angelides Commission after the chairman, Phil Angelides . The commission has been compared to the Pecora Commission , which investigated the causes of the Great Depression in the 1930s, and has been nicknamed the New Pecora Commission . Analogies have also been made to the 9/11 Commission , which examined the September 11 attacks . The commission had the ability to subpoena documents and witnesses for testimony, a power that the Pecora Commission had but the 9/11 Commission did not. The first public hearing of the commission was held on January 13, 2010, with the presentation of testimony from various banking officials. Hearings continued during 2010 with "hundreds" of other persons in business, academia, and government testifying.

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163-527: The Commission reported its findings in January 2011. In briefly summarizing its main conclusions the Commission stated: "While the vulnerabilities that created the potential for crisis were years in the making, it was the collapse of the housing bubble—fueled by low interest rates, easy and available credit, scant regulation, and toxic mortgages—that was the spark that ignited a string of events, which led to

326-577: A Bermuda -based insurer, for $ 3.4 billion. Brian Duperreault was appointed CEO of AIG on May 15, 2017. Duperreault, who previously worked at AIG from 1973 until 1994, was hired as CEO from Hamilton Insurance Group following Hancock's announcement in March 2017 that he would step down as AIG CEO under pressure after a period of disappointing financial results. Due to previous calls in 2015 and 2016 to shrink or break up AIG, Duperreault announced his intention to grow AIG and maintain its multiline structure as

489-495: A cascading waterfall with Italian Renaissance -style architecture. Modern , Postmodern , contemporary , and other non-classical architectural styles are also seen in the city. The National Museum of African American History and Culture deeply contrasts the stone-based neoclassical buildings on the National Mall with a design that combines modern engineering with heavy inspiration from African art . The interior of

652-417: A joint venture with Hamilton Insurance Group and Two Sigma Investments to serve the insurance needs of small- to medium-sized enterprises. Industry veteran Brian Duperreault became the chairman of the new entity, and Richard Friesenhahn, the executive vice president of U.S. casualty lines at AIG, became CEO. In August 2016, AIG sold off United Guaranty, its mortgage-guarantee unit, to Arch Capital Group ,

815-509: A referendum on D.C. statehood resulted in an 85% support among Washington, D.C., voters for it to become the nation's 51st state . In March 2017, the city's congressional delegate Eleanor Holmes Norton introduced a bill for statehood. Reintroduced in 2019 and 2021 as the Washington, D.C., Admission Act , the U.S. House of Representatives passed it in April 2021. After not progressing in

978-450: A 2022 IPO, the company announced, in July 2021, that Blackstone Group would acquire 9.9% of the new unit for $ 2.2 billion cash. Blackstone and AIG also entered a long-term asset management agreement for about one quarter of AIG's life and retirement portfolio, set to increase in subsequent years. After the spin-off, Corebridge Financial became an independent entity, raising $ 1.68 billion in

1141-404: A Senator responded to the planned payments by saying "[I]t's hard to understand how derivative traders at AIG warranted any bonuses, much less $ 165 million in extra pay. How do they justify this outrage to the taxpayers who are keeping the company afloat?" Both Democratic and Republican politicians reacted with similar outrage to the planned bonuses, as did political commentators and journalists in

1304-408: A breakup of AIG, describing the company as "too big to succeed". AIG announced plans for an initial public offering of 19.9 percent of United Guaranty Corp., a Greensboro, North Carolina -based provider of mortgage insurance for lenders in January 2016. Later that year, Icahn won a seat on the board of directors and continued to pressure the company to split up its major divisions. AIG also began

1467-420: A clerk in its London office in 1970. AIG then took on tens of billions of dollars of risk associated with mortgages. It insured tens of billions of dollars of derivatives against default, but did not purchase reinsurance to hedge that risk. Secondly, it used collateral on deposit to buy mortgage-backed securities. When losses hit the mortgage market in 2007–2008, AIG had to pay out insurance claims and also replace

1630-504: A full-blown crisis in the fall of 2008. Trillions of dollars in risky mortgages had become embedded throughout the financial system, as mortgage-related securities were packaged, repackaged, and sold to investors around the world. When the bubble burst, hundreds of billions of dollars in losses in mortgages and mortgage-related securities shook markets as well as financial institutions that had significant exposures to those mortgages and had borrowed heavily against them. This happened not just in

1793-408: A garden-lined grand avenue about 1 mile (1.6 km) long and 400 feet (120 m) wide in an area that is now the National Mall inspired by the grounds at Versailles and Tuileries Gardens. In March 1792, President Washington dismissed L'Enfant due to conflicts with the three commissioners appointed to supervise the capital's construction. Andrew Ellicott , who worked with L'Enfant in surveying

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1956-726: A general insurance agency, American Asiatic Underwriters (AAU), in Shanghai, China. Business grew rapidly, and two years later, Starr formed a life insurance operation. By the late 1920s, AAU had branches throughout China and Southeast Asia, including the Philippines , Indonesia , and Malaysia . In 1926, Starr opened his first office in the United States, American International Underwriters Corporation (AIU). He also focused on opportunities in Latin America and, in

2119-628: A letter to the Board of Directors of AIG seeking to oust CEO Martin Sullivan and make certain other management and Board of Directors changes. On June 15, 2008, after disclosure of financial losses and subsequent to a falling stock price, Sullivan resigned and was replaced by Robert B. Willumstad , Chairman of the AIG Board of Directors since 2006. Willumstad was forced by the US government to step down and

2282-614: A massive housing bubble full of non-traditional, risky loans that ultimately led to a financial crisis. Regarding the AEI paper, Phil Angelides, chairman of the FCIC, has stated: "The source for this newfound wisdom [is] shopworn data, produced by a consultant to the corporate-funded American Enterprise Institute, which was analyzed and debunked by the FCIC Report." The FCIC constructed the report to be broadly appealing, at least in part due to

2445-548: A minority stake to The Carlyle Group . In November 2019, a Carlyle-managed fund and T&D Holdings acquired a majority interest in Fortitude Re, leaving AIG with a 3.5% stake "subject to required regulatory approvals and other customary closing conditions." Duperreault and Zaffino set out a turnaround strategy for the General Insurance business in 2017 and began execution. In 2019, Duperreault stated that

2608-502: A modern glass exterior and heavy curvature. CityCenterDC is home to Palmer Alley, a pedestrian-only walkway, and houses several apartment buildings, restaurants, and luxury-brand storefronts with streamlined glass and metal facades. Outside Downtown D.C., architectural styles are more varied. Historic buildings are designed primarily in the Queen Anne , Châteauesque , Richardsonian Romanesque , Georgian Revival , Beaux-Arts , and

2771-787: A number of its own assets to raise money to pay back the government. On December 14, 2012, the Treasury Department sold the last of its AIG stock in its sixth stock sale for a total of approximately $ 7.6 billion. In total, the Treasury Department realized a gain of more than $ 22 billion from the sale of AIG common stock and $ 0.9 billion from the sale of AIG preferred stock. The same month, Robert Benmosche announced that he would be stepping down from his position as president and CEO due to his advancing lung cancer. AIG began an advertising campaign on January 1, 2013, called "Thank You America," in which several company employees, including AIG President and CEO Robert Benmosche, talked directly to

2934-473: A number on par with that of the most cited law review article in 2009. The vote of the four Republicans on the commission to ban the words "Wall Street," "shadow banking," "interconnection," and "deregulation" from the main report—which was rejected by the six Democratic commissioners but carried out in the dissenting Republican report—was criticized by some such as Bethany McLean, Paul Krugman, and Shahien Nasiripour. Business columnist Joe Nocera also criticized

3097-439: A part of AIG's asset management business, and that they also expected to pay an additional $ 200 million to AIG in carried interest and other payments linked to future performance of the business. AIG then sold its American Life Insurance Co. (ALICO) to MetLife Inc. for $ 15.5 billion in cash and MetLife stock in March 2010. Bloomberg L.P. reported on March 29, 2010, that after almost three months of delays, AIG had completed

3260-559: A provider of leased aircraft to the airline industry. In 1992, AIG received the first foreign insurance license granted in over 40 years by the Chinese government. Within the U.S., AIG acquired SunAmerica Inc. a retirement savings company managed by Eli Broad , in 1999. The early 2000s saw a marked period of growth as AIG acquired American General Corporation, a leading domestic life insurance and annuities provider, and AIG entered new markets including India. In February 2000, AIG created

3423-648: A provider of life and retirement solutions and non-life insurance, outlining a strategy to focus on technology, " underwriting discipline," and diversification. 2017 through early 2019 saw AIG hire a number of new upper level executives. In 2017, Duperreault named Peter Zaffino as AIG COO , later also naming him CEO of AIG's General Insurance business. Zaffino succeeded Duperreault as president of AIG in January 2020, with Duperreault remaining AIG's CEO. The company announced plans in 2017 to reorganize its Commercial and Consumer segments into General Insurance and Life & Retirement, respectively. In September 2017,

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3586-736: A race to the weakest supervisor." "Too many of these institutions acted recklessly, taking on too much risk, with too little capital, and with too much dependence on short-term funding. ... [Large investment banks and bank holding companies] took on enormous exposures in acquiring and supporting subprime lenders and creating, packaging, repackaging, and selling trillions of dollars in mortgage-related securities , including synthetic financial products ." The report goes on to fault "poorly executed acquisition and integration strategies that made effective management more challenging," narrow emphasis on mathematical models of risk as opposed to actual risk, and short-sighted compensation systems at all levels. "In

3749-431: A relatively high homelessness rate, despite its high living standard compared to many American cities. Washington, D.C., is divided into four quadrants of unequal area: Northwest (NW) , Northeast (NE) , Southeast (SE) , and Southwest (SW) . The axes bounding the quadrants radiate from the U.S. Capitol. All road names include the quadrant abbreviation to indicate their location. House numbers generally correspond with

3912-453: A result, AIG's credit rating was downgraded and it was required to post additional collateral with its trading counter-parties, leading to a liquidity crisis that began on September 16, 2008, and essentially bankrupted all of AIG. The New York United States Federal Reserve Bank (led by Timothy Geithner who would later become Treasury secretary) stepped in, announcing creation of a secured credit facility, initially of up to $ 85 billion to prevent

4075-551: A series of public hearings throughout the year including, but not limited to, the following topics: avoiding future catastrophe, complex financial derivatives, credit rating agencies, excess risk and financial speculation, government-sponsored enterprises, the shadow banking system , subprime lending practices and securitization, and too big to fail. The first meeting of the Commission took place in Washington on September 17, 2009, and consisted of opening remarks by Commissioners. On January 13, 2010, Lloyd Blankfein testified before

4238-528: A share buyback of as much as $ 1 billion. Nine years after the initial bailout, in 2017, the U.S. Financial Stability Oversight Council removed AIG from its list of too-big-to-fail institutions. The United States Department of the Treasury announced an offering of 188.5 million shares of AIG for a total of $ 5.8 billion on May 7, 2012. The sale reduced Treasury's stake in AIG to 61 percent, from 70 percent before

4401-427: A significant percentage of the sampled loans did not meet their own underwriting standards or those of the originators . Nonetheless, they sold those securities to investors. The commission's review of many prospectuses provided to investors found that this critical information was not disclosed. "Many mortgage lenders set the bar so low that lenders simply took eager borrowers' qualifications on faith , often with

4564-849: A single report while Wallison, from the American Enterprise Institute drafted his alone and proposed that the crisis was caused by government affordable housing policies rather than market forces. However, this view has not been supported by subsequent detailed analyses of mortgage market data. The Commission reached nine main conclusions (directly quoted): "There was an explosion in risky subprime lending and securitization , an unsustainable rise in housing prices, widespread reports of egregious and predatory lending practices , dramatic increases in household mortgage debt , and exponential growth in financial firms' trading activities, unregulated derivatives , and short-term "repo" lending markets , among many other red flags. Yet there

4727-540: A snowstorm in January 1772. Hurricanes or their remnants occasionally impact the area in late summer and early fall. However, they usually are weak by the time they reach Washington, partly due to the city's inland location. Flooding of the Potomac River , however, caused by a combination of high tide, storm surge, and runoff, has been known to cause extensive property damage in the Georgetown neighborhood of

4890-676: A special committee charged with beautifying Washington's ceremonial core. What became known as the McMillan Plan was finalized in 1901 and included relandscaping the Capitol grounds and the National Mall, clearing slums, and establishing a new citywide park system. The plan is thought to have largely preserved L'Enfant's intended design for the city. By law, the city's skyline is low and sprawling. The federal Height of Buildings Act of 1910 prohibits buildings with height exceeding

5053-659: A standalone technology-enabled subsidiary. General Insurance includes Commercial, Personal Insurance, U.S. and International field operations. Life & Retirement includes Group Retirement, Individual Retirement, Life, and Institutional Markets. AIG is the title sponsor of the AIG Women's Open golf tournament. In 2023, for the sixth consecutive year, DiversityInc named AIG among the Top 50 Companies for Diversity list. AIG's corporate headquarters are in New York City and

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5216-591: A strategic advisory venture team with the Blackstone Group and Kissinger Associates "to provide financial advisory services to corporations seeking high level independent strategic advice". AIG was an investor in Blackstone from 1998 to March 2012, when it sold all of its shares in the company. Blackstone acted as an adviser for AIG during the 2007–2008 financial crisis . In March 2003 American General merged with Old Line Life Insurance Company. In

5379-633: A stream valley that bisects the city. Established in 1890, it is the country's fourth-oldest national park and is home to a variety of plant and animal species, including raccoon, deer, owls, and coyotes. Other National Park Service properties include the Chesapeake and Ohio Canal National Historical Park , the National Mall and Memorial Parks , Theodore Roosevelt Island , Columbia Island , Fort Dupont Park , Meridian Hill Park , Kenilworth Park and Aquatic Gardens , and Anacostia Park . The District of Columbia Department of Parks and Recreation maintains

5542-410: A successful multiple line carrier. Greenberg focused on selling insurance through independent brokers rather than agents to eliminate agent salaries. Using brokers, AIU could price insurance according to its potential return even if it suffered decreased sales of certain products for great lengths of time with very little extra expense. In 1967, American International Group, Inc. (AIG) was incorporated as

5705-540: A unifying umbrella organization for most of C.V. Starr's general and life insurance businesses. In 1968, Starr named Greenberg his successor. The company went public in 1969. The 1970s presented many challenges for AIG as operations in the Middle East and Southeast Asia were curtailed or ceased altogether due to the changing political landscape. However, AIG continued to expand its markets by introducing specialized energy, transportation, and shipping products to serve

5868-473: A variety of Victorian styles. Rowhouses are prominent in areas developed after the Civil War and typically follow Federal and late Victorian designs. Georgetown 's Old Stone House , built in 1765, is the oldest-standing building in the city. Founded in 1789, Georgetown University features a mix of Romanesque and Gothic Revival architecture . The Ronald Reagan Building is the largest building in

6031-518: A volatile credit and equity market. In January 2020, AIG announced it was ending its decade-long sponsorship of the All Blacks in 2021. On March 1, 2021, Peter Zaffino succeeded Brian Duperreault as AIG's CEO, with Duperreault becoming executive chairman of the board. Then, in January 2022, Zaffino also became chairman of the AIG board. As part of AIG's 2020 plan to form an independent company of its life and retirement insurance business with

6194-407: A willful disregard for a borrower's ability to pay. ... While many of these mortgages were kept on banks' books, the bigger money came from global investors who clamored to put their cash into newly created mortgage-related securities. It appeared to financial institutions, investors, and regulators alike that risk had been conquered. ... But each step in the mortgage securitization pipeline depended on

6357-911: Is generally popular among tourists and locals. In 2007, six of the top ten buildings in the American Institute of Architects ' ranking of America's Favorite Architecture were in the city: the White House , Washington National Cathedral , the Jefferson Memorial , the United States Capitol , the Lincoln Memorial , and the Vietnam Veterans Memorial . The neoclassical , Georgian , Gothic , and Modern styles are reflected among these six structures and many other prominent edifices in

6520-682: Is home to many national monuments and museums , located most prominently on or around the National Mall , including the Jefferson Memorial , the Lincoln Memorial , and the Washington Monument . It hosts 177 foreign embassies and serves as the headquarters for the World Bank , the International Monetary Fund , the Organization of American States , and other international organizations. Home to many of

6683-480: Is in plant hardiness zone 8a near downtown, and zone 7b elsewhere in the city. Summers are hot and humid with a July daily average of 79.8 °F (26.6 °C) and average daily relative humidity around 66%, which can cause moderate personal discomfort. Heat indices regularly approach 100 °F (38 °C) at the height of summer. The combination of heat and humidity in the summer brings very frequent thunderstorms, some of which occasionally produce tornadoes in

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6846-477: Is sea level at the Potomac River. The geographic center of Washington is near the intersection of 4th and L streets NW. The district has 7,464 acres (30.21 km ) of parkland, about 19% of the city's total area, the second-highest among high-density U.S. cities after Philadelphia . The city's sizable parkland was a factor in the city being ranked as third in the nation for park access and quality in

7009-475: The 2020 census , the city had a population of 689,545. Commuters from the city's Maryland and Virginia suburbs raise the city's daytime population to more than one million during the workweek. The Washington metropolitan area , which includes parts of Maryland, Virginia, and West Virginia , is the country's seventh-largest metropolitan area , with a 2023 population of 6.3 million residents. A locally elected mayor and 13-member council have governed

7172-555: The AIG bonus payments controversy . AIG began selling some assets to pay off its government loans in September 2008 despite a global decline in the valuation of insurance businesses, and the weakening financial condition of potential bidders. In December 2009, AIG formed international life insurance subsidiaries, American International Assurance Company, Limited (AIA) and American Life Insurance Company (ALICO), which were transferred to

7335-499: The Anacostia River to the east. Washington, D.C.'s street grid was extended, where possible, throughout the district starting in 1888. Georgetown's streets were renamed in 1895. Some streets are particularly noteworthy, including Pennsylvania Avenue , which connects the White House to the Capitol; and K Street, which houses the offices of many lobbying groups. Constitution Avenue and Independence Avenue , located on

7498-646: The Compensated Emancipation Act in 1862, which ended slavery in the district, freeing about 3,100 slaves in the district nine months before the Emancipation Proclamation . In 1868, Congress granted the district's African American male residents the right to vote in municipal elections. By 1870, the district's population had grown 75% in a decade to nearly 132,000 people, yet the city still lacked paved roads and basic sanitation. Some members of Congress suggested moving

7661-714: The Continental Congress and under the Articles of Confederation . New York City was the first capital upon the adoption of the Constitution , succeeded by Philadelphia , which was capital from 1790 to 1800. On October 6, 1783, after the capital was forced by the Pennsylvania Mutiny of 1783 to move to Princeton, Congress resolved to consider a new location for it. The following day, Elbridge Gerry of Massachusetts moved "that buildings for

7824-811: The District of Columbia Organic Act of 1801 , which officially organized the district and placed the entire territory under the exclusive control of the federal government. The area within the district was organized into two counties, the County of Washington to the east and north of the Potomac and the County of Alexandria to the west and south. After the Act's passage, citizens in the district were no longer considered residents of Maryland or Virginia, which ended their representation in Congress. On August 24, 1814, during

7987-606: The FRBNY to date had received a combined positive return of approximately $ 15.1 billion. On October 12, 2012, AIG announced a five and a half year agreement to sponsor six New Zealand-based rugby teams, including the world champion All Blacks . The AIG logo and the Adidas logo, the league's primary sponsor, were displayed on the league's team jerseys. The U.S. Department of the Treasury in December 2012 published an itemized list of

8150-571: The Federal Reserve bailed the company out for $ 180 billion and assumed controlling ownership stake, with the Financial Crisis Inquiry Commission correlating AIG's failure with the mass sales of unhedged insurance. AIG repaid $ 205 billion (~$ 269 billion in 2023) to the United States government in 2012. AIG was founded December 19, 1919 when American Cornelius Vander Starr (1892–1968) established

8313-573: The Federal Reserve Bank of New York , to reduce its debt by $ 25 billion. AIG sold its Hartford Steam Boiler unit on March 31, 2009, to Munich Re for $ 742 million. On April 16, 2009, AIG announced plans to sell its 21st Century Insurance subsidiary to Farmers Insurance Group for $ 1.9 billion. In June 2009 AIG sold its majority ownership of reinsurer Transatlantic Re. The Wall Street Journal reported on September 7, 2009, that Pacific Century Group had agreed to pay $ 500 million for

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8476-576: The Financial Stability Oversight Council determined that AIG was no longer considered a nonbank systemically important financial institution ( SIFI ). Duperreault commented in response that the development reflected "the progress made since 2008 to de-risk the company." AIG made a number of acquisitions in 2018. That July, AIG acquired Validus Holdings Ltd., a provider of reinsurance based in Bermuda . The company

8639-484: The Potomac River forms the district's border with Virginia and has two major tributaries, the Anacostia River and Rock Creek . Tiber Creek , a natural watercourse that once passed through the National Mall , was fully enclosed underground during the 1870s. The creek also formed a portion of the now-filled Washington City Canal , which allowed passage through the city to the Anacostia River from 1815 until

8802-627: The Twenty-third Amendment , passed in 1961. Washington, D.C. anchors the southern end of the Northeast megalopolis . As the seat of the U.S. federal government , the city is an important world political capital . The city hosts the buildings that house federal government headquarters, including the White House , the Capitol, the Supreme Court Building , and multiple federal departments and agencies . The city

8965-428: The U.S. East Coast . The city has a total area of 68.34 square miles (177 km ), of which 61.05 square miles (158.1 km ) is land and 7.29 square miles (18.9 km ) (10.67%) is water. The district is bordered by Montgomery County, Maryland , to the northwest; Prince George's County, Maryland , to the east; Arlington County, Virginia , to the west; and Alexandria, Virginia , to the south. The south bank of

9128-594: The U.S. Securities and Exchange Commission and the Justice Department partly resolving a number of regulatory matters, and the company needed to continue to cooperate with investigators continuing to probe the sale of a non-traditional insurance product. In 2005, AIG became embroiled in a series of fraud investigations conducted by the Securities and Exchange Commission , U.S. Justice Department , and New York State Attorney General 's Office. Greenberg

9291-749: The United States Senate Homeland Security Permanent Subcommittee on Investigations released the Wall Street and the Financial Crisis: Anatomy of a Financial Collapse report, sometimes known as the "Levin-Coburn" report. The commission was created by section 5 of the Fraud Enforcement and Recovery Act of 2009 (Public Law 111–21), signed into law by President Barack Obama on May 20, 2009. That section of

9454-637: The War of 1812 , British forces invaded and occupied the city after defeating an American force at Bladensburg . In retaliation for acts of destruction by American troops in the Canadas , the British set fire to government buildings in the city, gutting the United States Capitol , the Treasury Building , and the White House in what became known as the burning of Washington . However, a storm forced

9617-623: The Washington Metro stations and the Hirshhorn Museum and Sculpture Garden are designed with strong influence from the 20th-century Brutalism movement. The Smithsonian Institution Building is built of Seneca red sandstone in the Norman Revival style. The Old Post Office building, located on Pennsylvania Avenue and completed in 1899, was the first building in the city to have a steel frame structure and

9780-438: The global financial system . In addition, the existence of millions of derivatives contracts of all types between systemically important financial institutions—unseen and unknown in this unregulated market—added to uncertainty and escalated panic, helping to precipitate government assistance to those institutions." "The three credit rating agencies were key enablers of the financial meltdown. The mortgage-related securities at

9943-679: The $ 500 million sale of a portion of its asset management business, branded PineBridge Investments , to the Asia-based Pacific Century Group. Fortress Investment Group purchased 80% of the interest in financing company American General Finance in August 2010. In September 2010 AIG sold AIG Starr and AIG Edison, two of its Japan-based companies, to Prudential Financial for $ 4.2 billion in cash and $ 600 million in assumption of third party AIG debt by Prudential. On November 1, 2010, AIG raised $ 36.71 billion from both

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10106-529: The 1850s. The Chesapeake and Ohio Canal starts in Georgetown and was used during the 19th century to bypass the Little Falls of the Potomac River, located at the northwest edge of the city at the Atlantic Seaboard fall line . The highest natural elevation in the district is 409 feet (125 m) above sea level at Fort Reno Park in upper northwest Washington, D.C. The lowest point

10269-482: The 2018 ParkScore ranking of the park systems of the nation's 100 most populous cities, according to Trust for Public Land , a non-profit organization. The National Park Service manages most of the 9,122 acres (36.92 km ) of city land owned by the U.S. government. Rock Creek Park is a 1,754-acre (7.10 km ) urban forest in Northwest Washington, which extends 9.3 miles (15.0 km) through

10432-477: The AIG board includes: Washington, D.C. Washington, D.C. , formally the District of Columbia and commonly known as Washington or D.C. , is the capital city and federal district of the United States . The city is on the Potomac River , across from Virginia , and shares land borders with Maryland to its north and east. It was named after George Washington , the first president of

10595-529: The Act: To examine the causes of the current financial and economic crisis in the United States, specifically the role of (2) to examine the causes of the collapse of each major financial institution that failed (including institutions that were acquired to prevent their failure) or was likely to have failed if not for the receipt of exceptional Government assistance from the Secretary of the Treasury during

10758-464: The American financial failure that has yet been made" and "the definitive history of this period." The report was released on a Thursday and, by Sunday, Amazon had already run out of copies. However, the report was not just commercially and critically successful. It was also favored by legal scholars for its exhaustive detail. From 2010 to 2013, it was cited by at least seventy-six law review articles,

10921-504: The British to evacuate the city after just 24 hours. Most government buildings were repaired quickly, but the Capitol, which was largely under construction at the time, would not be completed in its current form until 1868. In the 1830s, the district's southern territory of Alexandria declined economically, due in part to its neglect by Congress. Alexandria was a major market in the domestic slave trade and pro-slavery residents feared that abolitionists in Congress would end slavery in

11084-554: The Champions League, in the space of four seasons. In 2019, AIG signed a five-year contract to be the title sponsor of Women's British Open, its first deal in golf. In 2020, the contract was extended to 2025 and the championship was rebranded as the AIG Women's Open , with the largest major women's golf prize fund in 2021, totaling $ US5.8 million. The AIG Women's Open set a new benchmark in 2022 of $ 7.3 million for women's major championship golf prize payouts, increasing

11247-405: The District from its founding. The building of Washington likely relied in significant part on slave labor, and slave receipts have been found for the White House, Capitol Building, and establishment of Georgetown University. The city became an important slave market and a center of the nation's internal slave trade . After its survey, the new federal city was constructed on the north bank of

11410-433: The District of Columbia. Shepherd authorized large projects that modernized the city but bankrupted its government. In 1874, Congress replaced the territorial government with an appointed three-member board of commissioners. In 1888, the city's first motorized streetcars began service. Their introduction generated growth in areas of the district beyond the City of Washington's original boundaries, leading to an expansion of

11573-459: The Federal Reserve's involvement as a possible conflict of interest, and there has been disagreement among some commission members on what information to make public and where to place blame. Mr. Angelides called the criticisms "silly, stupid Washington stuff," adding: "I don't know what Mr. Issa's agenda is, but I can tell you what ours is." In a joint interview the commission's chairman, Phil Angelides (D), and vice chairman, Bill Thomas (R), said that

11736-569: The Financial Crisis Inquiry Commission issued one of many critical governmental reports, deciding that AIG failed and was rescued by the government primarily because its enormous sales of credit default swaps were made without putting up the initial collateral, setting aside capital reserves, or hedging its exposure, which one analyst considered a profound failure in corporate governance, particularly its risk management practices. Other analysts believed AIG's failure

11899-565: The Maiden Lane case "without prejudice" on May 28, 2013. On May 7, 2013, Los Angeles U.S. District Judge, Mariana Pfaelzer, ruled in a case between AIG and Bank of America concerning possible misrepresentations by Merrill Lynch and Countrywide as to the quality of the mortgage portfolio, that $ 7.3 billion of the disputed claims had not been assigned. The two parties settled in July 2014, with Bank of America paying out $ 650 million to AIG, who in turn dismissed their litigation. In July 2023,

12062-444: The Potomac River, to the east of Georgetown centered on Capitol Hill . On September 9, 1791, three commissioners overseeing the capital's construction named the city in honor of President Washington. The same day, the federal district was named Columbia, a feminine form of Columbus , which was a poetic name for the United States commonly used at that time. Congress held its first session there on November 17, 1800. Congress passed

12225-458: The Potomac River. The city was founded in 1791, and the 6th Congress held the first session in the unfinished Capitol Building in 1800 after the capital moved from Philadelphia . In 1801, the District of Columbia, formerly part of Maryland and Virginia and including the existing settlements of Georgetown and Alexandria , was officially recognized as the federal district; initially, the city

12388-462: The Residence Act, the exact location was to be selected by President George Washington , who signed the bill into law on July 16, 1790. Formed from land donated by Maryland and Virginia, the initial shape of the federal district was a square measuring 10 miles (16 km) on each side and totaling 100 square miles (259 km ). Two pre-existing settlements were included in the territory,

12551-523: The Senate, the statehood bill was introduced again in January 2023. The bill would have made D.C. into a state with one representative and two senators, with the name Washington, Douglas Commonwealth (thus keeping the same abbreviation Washington, D.C.). The legalities, reasons, and impact of statehood have been heavily debated in the 2020s. Washington, D.C., is located in the Mid-Atlantic region of

12714-515: The Talbot Treaty reinsurance business, to RenaissanceRe for $ 2.985 billion, in cash and RenaissanceRe common shares. In March 2024, British regulators cleared the sale of the UK arm of AIG Life Ltd to British insurer Aviva for £460 million. In Australia and China, AIG is identified as a large financial institution and provider of financial services including credit security mechanisms. In

12877-423: The United States . The district is named after Columbia , the female personification of the nation . The U.S. Constitution in 1789 called for the creation of a federal district under the exclusive jurisdiction of the U.S. Congress . As such, Washington, D.C., is not part of any state , and is not one itself. The Residence Act , adopted on July 16, 1790, approved the creation of the capital district along

13040-911: The United States Constitution was ratified in 1961, granting the district three votes in the Electoral College for the election of president and vice president, but still not affording the city's residents representation in Congress. After the assassination of civil rights leader Martin Luther King Jr. on April 4, 1968, riots broke out in the city , primarily in the ;Street, 14th Street, 7th Street, and H Street corridors, which were predominantly black residential and commercial areas. The riots raged for three days until more than 13,600 federal troops and Washington, D.C., Army National Guardsmen stopped

13203-414: The United States but around the world. The losses were magnified by derivatives such as synthetic securities." The commission was explicit in its concerns about insurance giant American International Group , financial giants Bear Stearns and Lehman Brothers , and mortgage giants Fannie Mae and Freddie Mac , each of which the government brought under consideration for financial rescue. In April 2011,

13366-410: The United States, AIG is the largest underwriter of commercial and industrial insurance. AIG offers property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services. In the third quarter of 2012, the global property-and-casualty insurance business, Chartis, was renamed AIG Property Casualty. SunAmerica, life-insurance and retirement-services division,

13529-513: The already-implemented L'Enfant Plan , with the new McMillan Plan leading urban development in the city throughout the movement. Much of the old Victorian Mall was replaced with modern Neoclassical and Beaux-Arts architecture ; these designs are still prevalent in the city's governmental buildings today. Increased federal spending under the New Deal in the 1930s led to the construction of new government buildings, memorials, and museums in

13692-504: The area. Blizzards affect Washington once every four to six years on average. The most violent storms, known as nor'easters , often impact large regions of the East Coast . From January 27 to 28, 1922 , the city officially received 28 inches (71 cm) of snowfall, the largest snowstorm since official measurements began in 1885. According to notes kept at the time, the city received between 30 and 36 inches (76 and 91 cm) from

13855-534: The camera and offered their thanks for the government assistance. Peter Hancock succeeded Benmosche as president and CEO of AIG in September 2014. While Benmosche stayed on in an advisory role, he died in February the following year. In June 2015, Taiwan 's Nan Shan Life Insurance acquired a stake in AIG's subsidiary in Taiwan for a fee of $ 158 million. Later that year, activist investor Carl Icahn called for

14018-562: The capital farther west, but President Ulysses S. Grant refused to consider the proposal. In the Organic Act of 1871 , Congress repealed the individual charters of the cities of Washington and Georgetown , abolished Washington County , and created a new territorial government for the whole District of Columbia. These steps made "the city of Washington...legally indistinguishable from the District of Columbia." In 1873, President Grant appointed Alexander Robey Shepherd as Governor of

14181-608: The capital. In the Compromise of 1790 , Madison, Alexander Hamilton , and Thomas Jefferson agreed that the federal government would pay each state's remaining Revolutionary War debts in exchange for establishing the new national capital in the Southern United States . On July 9, 1790, Congress passed the Residence Act , which approved the creation of a national capital on the Potomac River . Under

14344-565: The city's 900 acres (3.6 km ) of athletic fields and playgrounds, 40 swimming pools, and 68 recreation centers. The U.S. Department of Agriculture operates the 446-acre (1.80 km ) United States National Arboretum in Northeast Washington, D.C. Washington's climate is humid subtropical ( Köppen : Cfa ), or oceanic ( Trewartha : Do bordering Cf downtown). Winters are cool to cold with some snow of varying intensity, while summers are hot and humid. The district

14507-730: The city's classical-style architecture include buildings constructed in the French Second Empire style, including the Eisenhower Executive Office Building , and the modernist Watergate complex . The Thomas Jefferson Building , the main Library of Congress building, and the historic Willard Hotel are built in Beaux-Arts style , popular throughout the world in the late nineteenth and early twentieth centuries. Meridian Hill Park contains

14670-421: The city, was then tasked with completing its design. Though Ellicott revised the original L'Enfant plans, including changing some street patterns, L'Enfant is still credited with the city's overall design. By the early 20th century, however, L'Enfant's vision of a grand national capital was marred by slums and randomly placed buildings in the city, including a railroad station on the National Mall. Congress formed

14833-590: The city. Many of the government buildings, monuments, and museums along the National Mall and surrounding areas are heavily inspired by classical Roman and Greek architecture. The designs of the White House, the U.S. Capitol, Supreme Court Building , Washington Monument , National Gallery of Art , Lincoln Memorial, and Jefferson Memorial are all heavily drawn from these classical architectural movements and feature large pediments, domes, columns in classical order, and heavy stone walls. Notable exceptions to

14996-469: The city. Precipitation occurs throughout the year. The highest recorded temperature was 106 °F (41 °C) on August 6, 1918, and on July 20, 1930. The lowest recorded temperature was −15 °F (−26 °C) on February 11, 1899 , right before the Great Blizzard of 1899 . During a typical year, the city averages about 37 days at or above 90 °F (32 °C) and 64 nights at or below

15159-481: The commercial and critical success of past appealing reports. To that end, the Commission hired a communications firm, employed "cinematic language" within the report, and delayed the publishing of the report to continue working on its "unveiling." The commissions efforts to make the report appealing were successful. It made The New York Times and The Washington Post best sellers lists and The New York Review of Books hailed it as "the most comprehensive indictment of

15322-412: The commission on subprime lending and securitization. May 5–6, former Bear Stearns CEO Jimmy Cayne, former SEC Chairman Christopher Cox, Tim Geithner and Hank Paulson are scheduled to appear before the commission. Writer Joe Nocera of The New York Times praised the commission's approach and technical expertise in understanding complex financial issues during July 2010. July 27, The composition of

15485-533: The commission's staff changed several times since its formation. The executive director J. Thomas Greene was replaced by Wendy M. Edelberg, an economist from the Federal Reserve. Five of the initial fourteen senior staff members resigned, including Matt Cooper, a journalist who was writing the report. Darrell Issa , a top Republican on the House Oversight and Government Reform Committee, questioned

15648-498: The commission, that he considered Goldman Sachs' role as primarily that of a market maker, not a creator of the product (i.e.; subprime mortgage-related securities). Goldman Sachs was sued on April 16, 2010 by the SEC for the fraudulent selling of collateralized debt obligations tied to subprime mortgages, a product which Goldman Sachs had created. February 26–27 the Commission heard from academic experts and economists on issues related to

15811-530: The company also has offices around the world. AIG serves 87% of the Fortune Global 500 and 83% of the Forbes 2000 . AIG was ranked 60th on the 2018 Fortune 500 list. According to the 2016 Forbes Global 2000 list, AIG is the 87th largest public company in the world. On December 31, 2017, AIG had $ 65.2 billion (~$ 79.7 billion in 2023) in shareholder equity. During the 2007–2008 financial crisis ,

15974-488: The company's collapse, enabling AIG to deliver additional collateral to its credit default swap trading partners. The credit facility was secured by the stock in AIG-owned subsidiaries in the form of warrants for a 79.9% equity stake in the company and the right to suspend dividends to previously issued common and preferred stock. The AIG board accepted the terms of the Federal Reserve rescue package that same day, making it

16137-458: The crisis in three significant ways. First, one type of derivative— credit default swaps (CDS) fueled the mortgage securitization pipeline. CDS were sold to investors to protect against the default or decline in value of mortgage-related securities backed by risky loans. ... Second, CDS were essential to the creation of synthetic CDOs . These synthetic CDOs were merely bets on the performance of real mortgage-related securities. They amplified

16300-548: The crisis. The following experts have appeared before the Commission in public or in private: Martin Baily, Markus Brunnermeier, John Geanakoplos, Pierre-Olivier Gourinchas, Gary Gorton, Dwight Jaffee, Simon Johnson, Anil Kashyap , Randall Kroszner, Annamaria Lusardi, Chris Mayer, David Moss, Carmen M. Reinhart, Kenneth T. Rosen, Hal S. Scott, Joseph E. Stiglitz, John B. Taylor, Mark Zandi and Luigi Zingales. April 7–9, 2010, Alan Greenspan, Chuck Prince and Robert Rubin testified before

16463-477: The current financial and economic crisis. Speaker of the House Nancy Pelosi of California and Senate Majority Leader Harry Reid of Nevada (both Democrats ) each made three appointments, while House Minority Leader John Boehner of Ohio and Senate Minority Leader Mitch McConnell of Kentucky (both Republicans ) each made two appointments: As part of its inquiry, the commission will hold

16626-426: The district . Alexandria's citizens petitioned Virginia to retake the land it had donated to form the district, a process known as retrocession . The Virginia General Assembly voted in February 1846, to accept the return of Alexandria. On July 9, 1846, Congress went further, agreeing to return all territory that Virginia had ceded to the district during its formation. This left the district's area consisting only of

16789-548: The district over the next few decades. Georgetown's street grid and other administrative details were formally merged with those of the City of Washington in 1895. However, the city had poor housing and strained public works, leading it to become the first city in the nation to undergo urban renewal projects as part of the City Beautiful movement in the early 20th century. The City Beautiful movement built heavily upon

16952-425: The district since 1973, though Congress retains the power to overturn local laws. Washington, D.C., residents are, on the federal level, politically disenfranchised since the city's residents do not have voting representation in Congress; the city's residents elect a single non-voting congressional delegate to the U.S. House of Representatives. The city's voters choose three presidential electors in accordance with

17115-523: The district, though the chairman of the House Subcommittee on District Appropriations, Ross A. Collins of Mississippi , justified cuts to funds for welfare and education for local residents by saying that "my constituents wouldn't stand for spending money on niggers." World War II led to an expansion of federal employees in the city; by 1950, the district's population reached its peak of 802,178 residents. The Twenty-third Amendment to

17278-482: The early 2000s, AIG made significant investments in Russia as the country recovered from the 1998 Russian financial crisis . In July 2003, Maurice Greenberg met with Putin to discuss AIG's investments and improving U.S.-Russia economic ties, in anticipation of Putin's meeting with U.S. President George W. Bush later that year." In November 2004, AIG reached a $ 126 million (~$ 195 million in 2023) settlement with

17441-429: The financial and economic crisis: Credit bubble, Housing bubble, Nontraditional mortgages, Credit ratings and securitization, Financial institutions concentrated correlated risk, Leverage and liquidity risk, Risk of contagion, Common shock, Financial shock and panic, Financial crisis causes economic crisis. American Enterprise Institute senior fellow Peter Wallison authored a 93-page dissent in which he disagreed with both

17604-684: The first to use electrical wiring in its design. Notable contemporary residential buildings, restaurants, shops, and office buildings in the city include the Wharf on the Southwest Waterfront , Navy Yard along the Anacostia River , and CityCenterDC in Downtown . The Wharf has seen the construction of several high-rise office and residential buildings overlooking the Potomac River . Additionally, restaurants, bars, and shops have been opened at street level. Many of these buildings have

17767-631: The former's right to sue Bank of America and other issuers of bad mortgage debt. The specific issue was whether the Federal Reserve Bank of New York transferred $ 18 billion in litigation claims on troubled mortgage debt through Maiden Lane Transactions, entities created by the Fed in 2008. This transaction, AIG argued, prevented them from recouping losses from insured banks. Owing to events which allowed AIG to proceed in another related case, AIG Inc. v. Bank of America Corporation LLC , AIG withdrew

17930-404: The freezing mark (32 °F or 0 °C). On average, the first day with a minimum at or below freezing is November 18 and the last day is March 27. Washington, D.C., was a planned city , and many of the city's street grids were developed in that initial plan. In 1791, President George Washington commissioned Pierre Charles L'Enfant , a French-born military engineer and artist, to design

18093-557: The government had done nothing, the shareholders would have been left with 100 percent of nothing." Greenberg and the U.S. Government appealed to the Court of Appeals for the Federal Circuit, which ruled that Greenberg had no legal right to challenge the bailout because that right belonged to AIG, which in this case, chose not to sue. AIG filed suit against the Federal Reserve Bank of New York in January 2013 in order to maintain

18256-401: The government's inconsistent handling of major financial institutions during the crisis—the decision to rescue Bear Stearns and then to place Fannie Mae and Freddie Mac into conservatorship , followed by its decision not to save Lehman Brothers and then to save AIG —increased uncertainty and panic in the market." "In our economy, we expect businesses and individuals to pursue profits, at

18419-401: The heart of the crisis could not have been marketed and sold without their seal of approval . Investors relied on them, often blindly. In some cases, they were obligated to use them, or regulatory capital standards were hinged on them. ... [T]he forces at work behind the breakdowns at Moody's ... includ[ed] the flawed computer models, the pressure from financial firms that paid for the ratings,

18582-441: The largest U.S. IPO of 2022. In February 2023, AIG and Stone Point Capital entered into an agreement to establish an independent managing general agency and relocate AIG's current private client group to the independent new company, Private Client Select Insurance Services (PCS). That May, AIG agreed to sell subsidiary Crop Risk Services to American Financial Group for $ 240 million, as well as Validus Re, including AlphaCat and

18745-450: The largest government bailout of a private company in U.S. history. In March 2009, AIG compounded public cynicism concerning the " too big to fail " firm's bailout by announcing that it would pay its executives over $ 165 million in executive bonuses. Total bonuses for the financial unit could reach $ 450 million, and bonuses for the entire company could reach $ 1.2 billion. Newly inaugurated President Barack Obama, who had voted for TARP as

18908-503: The late 1930s, AIU entered Havana , Cuba. The steady growth of the Latin American agencies proved significant as it would offset the decline in business from Asia due to the impending World War II. In 1939, Starr moved his headquarters from Shanghai, China, to New York City. After World War II, American International Underwriters (AIU) entered Japan and Germany, to provide insurance for American military personnel. Throughout

19071-806: The late 1940s and early 1950s, AIU continued to expand in Europe, with offices opening in France, Italy, and the United Kingdom. In 1952, Starr began to focus on the American market by acquiring Globe & Rutgers Fire Insurance Company and its subsidiary, American Home Fire Assurance Company. By the end of the decade, C.V. Starr's general and life insurance organization included an extensive network of agents and offices in over 75 countries. In 1960, C.V. Starr hired Hank Greenberg to develop an international accident and health business. Two years later, Greenberg reorganized one of C.V. Starr's U.S. holdings into

19234-587: The lawsuit. After hearing thirty-seven days of testimony from Ben Bernanke, Timothy Geithner, Hank Paulson and others, Judge Thomas C. Wheeler ruled that the Federal Reserve payment to AIG had been an illegal exaction, as the Federal Reserve Act did not authorize the New York Fed to nationalize a corporation by owning its stock. Judge Wheeler did not award compensation to the plaintiffs, ruling that they did not suffer economic damage because "if

19397-447: The loans, stock purchases, special purpose vehicles (SPVs) and other investments engaged in with AIG, the amount AIG paid back and the positive return on the loans and investments to the government. The Treasury said that it and the Federal Reserve Bank of New York provided a total $ 182.3 billion to AIG, which paid back a total $ 205 billion, for a total positive return, or profit, to the government of $ 22.7 billion. In addition, AIG sold off

19560-574: The losses from the collapse of the housing bubble by allowing multiple bets on the same securities and helped spread them throughout the financial system. ... Finally, when the housing bubble popped and crisis followed, derivatives were in the center of the storm. AIG , which had not been required to put aside capital reserves as a cushion for the protection it was selling, was bailed out when it could not meet its obligations. The government ultimately committed more than $ 180 billion because of concerns that AIG's collapse would trigger cascading losses throughout

19723-436: The losses in its collateral accounts. AIG purchased the remaining 39% that it did not own of online auto insurance specialist 21st Century Insurance in 2007 for $ 749 million. With the failure of the parent company and the continuing recession in late 2008, AIG rebranded its insurance unit to 21st Century Insurance. On June 11, 2008, three stockholders, collectively owning 4% of the outstanding stock of AIG, delivered

19886-420: The losses—amplified by derivatives—rushed through the pipeline. As it turned out, these losses were concentrated in a set of systemically important financial institutions." "The enactment of legislation in 2000 to ban the regulation by both the federal and state governments of over-the-counter (OTC) derivatives was a key turning point in the march toward the financial crisis. ... OTC derivatives contributed to

20049-645: The majority report and the three other Republican appointees. Wallison argued that the US government's housing policies—implemented primarily through the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac—caused the financial crisis. In specific, Wallison named the GSEs' Affordable Housing goals, heightened enforcement of the Community Reinvestment Act, and the Department of Housing and Urban Development's Best Practices Initiative as

20212-519: The mortgage and real estate markets churned out riskier and riskier loans and securities, many financial institutions loaded up on them." "[K]ey policy makers ... were hampered because they did not have a clear grasp of the financial system they were charged with overseeing, particularly as it had evolved in the years leading up to the crisis. This was in no small measure due to the lack of transparency in key markets. They thought risk had been diversified when, in fact, it had been concentrated. ... There

20375-546: The nation's largest industry associations, non-profit organizations, and think tanks , D.C. is known as a lobbying hub, with K Street as the industry center. The city had 20.7 million domestic visitors and 1.2 million international visitors, ranking seventh among U.S. cities as of 2022. The Algonquian -speaking Piscataway people , also known as the Conoy, inhabited the lands around the Potomac River and present-day Washington, D.C., when Europeans first arrived and colonized

20538-469: The need for the national government not to rely on any state for its own security. Article One, Section Eight of the Constitution permits the establishment of a "District (not exceeding ten miles square) as may, by cession of particular states, and the acceptance of Congress, become the seat of the government of the United States". However, the constitution does not specify a location for

20701-536: The needs of niche industries. During the 1980s, AIG continued expanding its market distribution and worldwide network by offering a wide range of specialized products, including pollution liability and political risk. In 1984, AIG listed its shares on the New York Stock Exchange (NYSE). Throughout the 1990s, AIG developed new sources of income through diverse investments, including the acquisition of International Lease Finance Corporation (ILFC),

20864-496: The new capital. He enlisted the help of Isaac Roberdeau, Étienne Sulpice Hallet and Scottish surveyor Alexander Ralston to help lay out the city plan. The L'Enfant Plan featured broad streets and avenues radiating out from rectangles, providing room for open space and landscaping. L'Enfant was also provided a roll of maps by Thomas Jefferson depicting Frankfurt, Amsterdam, Strasbourg, Paris, Orleans, Bordeaux, Lyon, Marseille, Turin, and Milan. L'Enfant's design also envisioned

21027-634: The new executive team had restructured the business, implemented new risk and underwriting guidelines, and "overhauled its reinsurance buying strategy." In 2019, Duperreault and Zaffino announced "AIG 200", a multi-year program to improve operations by shedding legacy processes and excess manual interventions, modernizing and digitizing workflows, and unifying operations. Also during that month, AIG reported its second consecutive quarter of underwriting profits, and AIG's Life and Retirement business, led by CEO Kevin Hogan, delivered "solid growth" and returns despite

21190-428: The next step to keep demand going. From the speculators who flipped houses to the mortgage brokers who scouted the loans, to the lenders who issued the mortgages, to the financial firms that created the mortgage-backed securities, collateralized debt obligations (CDOs), CDOs squared, and synthetic CDOs: no one in this pipeline of toxic mortgages had enough skin in the game. When borrowers stopped making mortgage payments ,

21353-552: The north and south sides of the National Mall, respectively, are home to many of Washington's iconic museums, including many Smithsonian Institution buildings and the National Archives Building . Washington hosts 177 foreign embassies ; these maintain nearly 300 buildings and more than 1,600 residential properties, many of which are on a section of Massachusetts Avenue informally known as Embassy Row . The architecture of Washington, D.C., varies greatly and

21516-404: The number of blocks away from the Capitol. Most streets are set out in a grid pattern with east–west streets named with letters (e.g., C Street SW), north–south streets with numbers (e.g., 4th Street NW), and diagonal avenues, many of which are named after states . The City of Washington was bordered on the north by Boundary Street (renamed Florida Avenue in 1890); Rock Creek to the west, and

21679-662: The partisanship of the Republican members of the commission who issued a nine-page, three-footnote minority report before the report had been written. According to Nocera the contents of the report "simply reiterates longstanding Republican dogma." American International Group American International Group, Inc. ( AIG ) is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. As of 2023, AIG employed 25,200 people. The company operates through three core businesses: general insurance, life & retirement, and

21842-491: The period beginning in August 2007 through April 2009; (3) to submit a report under subsection (h); (4) to refer to the Attorney General of the United States and any appropriate State attorney general any person that the Commission finds may have violated the laws of the United States in relation to such crisis; and (5) to build upon the work of other entities, and avoid unnecessary duplication, by reviewing

22005-568: The port of Georgetown , founded in 1751, and the port city of Alexandria, Virginia , founded in 1749. In 1791 and 1792, a team led by Andrew Ellicott , including Ellicott's brothers Joseph and Benjamin and African American astronomer Benjamin Banneker , whose parents had been enslaved, surveyed the borders of the federal district and placed boundary stones at every mile point; many of these stones are still standing. Both Maryland and Virginia were slave states , and slavery existed in

22168-480: The portion originally donated by Maryland. Confirming the fears of pro-slavery Alexandrians, the Compromise of 1850 outlawed the slave trade in the district, although not slavery itself. The outbreak of the American Civil War in 1861 led to the expansion of the federal government and notable growth in the city's population, including a large influx of freed slaves. President Abraham Lincoln signed

22331-408: The powerful financial industry at every turn, had stripped away key safeguards, which could have helped avoid catastrophe. This approach had opened up gaps in oversight of critical areas with trillions of dollars at risk, such as the shadow banking system and over-the-counter derivatives markets . In addition, the government permitted financial firms to pick their preferred regulators in what became

22494-505: The primary culprits. According to Wallison, these programs, which were intended to give low- and moderate-income borrowers better access to mortgage credit, ultimately required Fannie Mae and Freddie Mac to reduce the mortgage underwriting standards they used when acquiring loans from originators. Because the GSEs dominated the mortgage market, they set the underwriting standards for the entire industry and pushed private institutions into riskier loans. Wallison concludes that these policies fueled

22657-640: The record of the Committee on Banking, Housing, and Urban Affairs of the Senate , the Committee on Financial Services of the House of Representatives , other congressional committees, the Government Accountability Office , other legislative panels, and any other department, agency, bureau, board, commission, office, independent establishment, or instrumentality of the United States (to the fullest extent permitted by law) with respect to

22820-538: The region in the early 17th century. The Nacotchtank , also called the Nacostines by Catholic missionaries , maintained settlements around the Anacostia River in present-day Washington, D.C. Conflicts with European colonists and neighboring tribes ultimately displaced the Piscataway people, some of whom established a new settlement in 1699 near Point of Rocks, Maryland . Nine cities served as capitals to

22983-411: The relentless drive for market share, the lack of resources to do the job despite record profits, and the absence of meaningful public oversight." In a 27-page dissenting statement, Vice Chairman Bill Thomas and Commissioners Keith Hennessey and Douglas Holtz-Eakin criticized the majority report for being an "account of bad events" rather than a "focused explanation of what happened and why." According to

23146-454: The sale of ALICO and its IPO of AIA. Proceeds went to repay some of the aid it received from the government during the 2007–2008 financial crisis . AIG sold its Taiwanese life insurance company Nan Shan Life to a consortium of buyers for $ 2.16 billion in January 2011. Due to the Q3 2011 net loss widening, on November 3, 2011, AIG shares plunged 49 percent year to date. The insurer's board approved

23309-403: The same time that they produce products and services of quality and conduct themselves well. Unfortunately ... [l]enders made loans that they knew borrowers could not afford and that could cause massive losses to investors in mortgage securities. ... And the report documents that major financial institutions ineffectively sampled loans they were purchasing to package and sell to investors. They knew

23472-845: The situation is even more serious. The company is much larger and complex than Lehman Brothers and its assets hitting the market all at once would likely cause worldwide chaos and send values plummeting. Experts question whether there are even enough qualified buyers out there to digest the company and its subsidiaries." AIG had sold credit protection through its London unit in the form of credit default swaps (CDSs) on collateralized debt obligations (CDOs) but by 2008, they had declined in value. AIG's Financial Products division , headed by Joseph Cassano in London, had entered into credit default swaps to insure $ 441 billion worth of securities originally rated AAA. Of those securities, $ 57.8 billion were structured debt securities backed by subprime loans. As

23635-433: The three Republicans, the majority report ignored the global nature of the financial crisis and, consequently, focused too narrowly on US regulatory policy and supervision. For those reasons, the dissent argues that the majority's conclusion that the crisis could have been avoided with more restrictive regulations, in conjunction with more aggressive regulators and supervisors, is false. The dissent lists ten essential causes of

23798-495: The tournament's purse 125% since 2018. In 2023, AIG announced it will continue as the title sponsor of the event through 2030, along with another increase in the total purse to $ 9 million. Hank Greenberg, with lead lawyer David Boies, independently sued the U.S. Government for money damages in the United States Court of Federal Claims in 2011. The AIG board had announced on January 9 that the company would not join

23961-632: The transaction. Four months later, on September 6, 2012, AIG sold $ 2 billion of its investment in AIA to repay government loans. The board also approved a $ 5 billion stock repurchase of government-owned shares in AIA. The next week, on September 14, 2012, the Department of Treasury completed its fifth sale of AIG common stock, with proceeds of approximately $ 20.7 billion, reducing the Treasury's ownership stake in AIG to approximately 15.9 percent from 53 percent. Government commitments were fully recovered, and Treasury and

24124-633: The turnover's effects had been exaggerated and that they were optimistic about a consensus. The commission's final report was initially due to Congress on December 15, 2010, but was not released until January 27, 2011. In voting on the adoption of the final report the commission was split evenly along partisan lines, with Angelides, Born, Georgiou, Graham, Murren, and Thompson (appointed by Democrats Pelosi and Reid) all voting in favor and Thomas, Hennessey, Holtz-Eakin, and Wallison (appointed by Republicans Boehner and McConnell) all dissenting. Among those dissenting Thomas, Hennessey, and Holtz-Eakin collaborated on

24287-575: The use of Congress be erected on the banks of the Delaware near Trenton , or of the Potomac , near Georgetown , provided a suitable district can be procured on one of the rivers as aforesaid, for a federal town". In Federalist No. 43 , published January 23, 1788, James Madison argued that the new federal government would need authority over a national capital to provide for its own maintenance and safety. The Pennsylvania Mutiny of 1783 emphasized

24450-442: The violence. Many stores and other buildings were burned, and rebuilding from the riots was not completed until the late 1990s. In 1973, Congress enacted the District of Columbia Home Rule Act providing for an elected mayor and 13-member council for the district. In 1975, Walter Washington became the district's first elected and first black mayor. Since the 1980s, the D.C. statehood movement has grown in prominence. In 2016,

24613-541: The width of the adjacent street plus 20 feet (6.1 m). Despite popular belief, no law has ever limited buildings to the height of the United States Capitol or the 555-foot (169 m) Washington Monument , which remains the district's tallest structure. City leaders have cited the height restriction as a primary reason that the district has limited affordable housing and its metro area has suburban sprawl and traffic problems. Washington, D.C., still has

24776-431: The years ended December 31, 2003, 2002, 2001 and 2000, the quarters ended March 31, June 30 and September 30, 2004, and 2003 and the quarter ended December 31, 2003. On November 9, 2005, the company was said to have delayed its third-quarter earnings report because it had to restate earlier financial results, to correct accounting errors. Martin J. Sullivan became CEO of the company in 2005. He began his career at AIG as

24939-415: The years leading up to the crisis, too many financial institutions, as well as too many households, borrowed to the hilt. ... [A]s of 2007, the leverage ratios [of the five major investment banks ] were as high as 40 to 1, meaning for every $ 40 in assets, there was only $ 1 in capital to cover losses. Less than a 3% drop in asset values could wipe out a firm. To make matters worse, much of their borrowing

25102-460: Was a separate settlement within the larger district. In 1846, Congress returned the land originally ceded by Virginia , including the city of Alexandria. In 1871, it created a single municipality for the remaining portion of the district. There have been several unsuccessful efforts to make the district into a state since the 1880s; a statehood bill passed the House of Representatives in 2021 but

25265-476: Was also a Lloyd's of London syndicate, involved in insurance-linked securities, a specialist in US small commercial excess and surplus underwriting, and a provider of crop insurance . The deal "brought in fresh underwriting talent," particularly in property risk and catastrophe risk. Also in 2018 AIG acquired Ellipse, a UK life insurance business, from Munich Re . In 2018, AIG established Fortitude Re to hold most of its run-off portfolios and late in 2018 sold

25428-404: Was no comprehensive and strategic plan for containment, because they lacked a full understanding of the risks and interconnections in the financial markets. ... While there was some awareness of, or at least a debate about, the housing bubble , the record reflects that senior public officials did not recognize that a bursting of the bubble could threaten the entire financial system. ... In addition,

25591-564: Was not adopted by the U.S. Senate . To become law it would have to be passed by the Senate and signed by president; it would have renamed the city Washington, Douglas Commonwealth and shrunk the Federal District to about the size of the national mall. Designed in 1791 by Pierre Charles L'Enfant , the city is divided into quadrants , which are centered around the Capitol Building and include 131 neighborhoods . As of

25754-445: Was ousted amid an accounting scandal in February 2005. The New York Attorney General's investigation led to a $ 1.6 billion fine for AIG and criminal charges for some of its executives. On May 1, 2005, investigations conducted by outside counsel at the request of AIG's Audit Committee and the consultation with AIG's independent auditors, PricewaterhouseCoopers LLP resulted in AIG's decision to restate its financial statements for

25917-458: Was pervasive permissiveness; little meaningful action was taken to quell the threats in a timely manner." The Commission especially singles out the Fed's "failure to stem the flow of toxic mortgages." "More than 30 years of deregulation and reliance on self-regulation by financial institutions, championed by former Federal Reserve chairman Alan Greenspan and others, supported by successive administrations and Congresses, and actively pushed by

26080-417: Was possible because of the sweeping deregulation of over-the-counter (OTC) derivatives, including credit default swaps, which effectively eliminated federal and state regulation of these products, including capital and margin requirements that would have lessened the likelihood of AIG's failure. Illustrating the danger of an AIG bankruptcy, a September 17, 2008, CNN Money article stated, "But in AIG's case,

26243-550: Was renamed AIG Life and Retirement; other existing brands continue to be used in certain geographies and market segments. AIG was the shirt sponsor of the English football club Manchester United F.C. between 2006 and 2010. AIG was the first American shirt sponsor of the club and AIG shirts were worn for one of the most concentrated periods of success in the club's history, coinciding with Sir Alex Ferguson 's third great United team, which won three Premier League titles, as well as

26406-550: Was replaced by Ed Liddy on September 17, 2008. AIG's board of directors named Bob Benmosche CEO on August 3, 2009, to replace Liddy, who earlier in the year announced his retirement. In late 2008, the federal government bailed out AIG for $ 180 billion, and technically assumed control, because many believed its failure would endanger the financial integrity of other major firms that were its trading partners-- Goldman Sachs , Morgan Stanley , Bank of America and Merrill Lynch , as well as dozens of European banks. In January 2011,

26569-418: Was short-term, in the overnight market—meaning the borrowing had to be renewed each and every day. ... And the leverage was often hidden—in derivatives positions, in off- balance-sheet entities, and through " window dressing " of financial reports available to the investing public. ... The heavy debt taken on by some financial institutions was exacerbated by the risky assets they were acquiring with that debt. As

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