A Conflict of Laws Approach Annelise Riles* American International Group
Managing Regulatory Arbitrage: A Conflict of Laws Approach Annelise Riles* American International Group (AIG). The very name of this multinational insurance company screams out its U.S. connections.1 Yet in 2008, when London traders, within an office of a subsidiary of AIG,2 engaged in trading activities that ultimately drove the parent company to the brink of failure,2 the trading conduct in question was largely beyond the reach of U.S. insurance and finance regulators,3 leaving American taxpayers on the hook for $182 billion.4 * This article was first conceived while I served as a visiting scholar from abroad at the Institute for Monetary and Economic Studies, Bank of Japan, and I thank my hosts there for their many helpful suggestions. For discussions and comments and that substantially improved the piece, I thank Adeno Addis, Minoru Aosaki, Hannah Buxbaum, Michael Campbell, Martin Davies, Masato Dogauchi, Adam Feibelman, Anna Gelpern, Odette Lineau, Ralf Michaels, Hirokazu Miyazaki, Martha Poon, Shu-Yi Oei, and audiences at the Duke Law School (November 2012), the Cornell International Law Journal symposium (March, 2013), the Tulane Law School (January 2014), and the New York University Law School (February 2014). I thank Diana Biller for her research assistance. 1 AIG is incorporated in Delaware and has its principal place of business in New York. DEL. INS. DEP’T, REPORT ON EXAMINATION OF AIG INSURANCE COMPANY 7 (2006), available at http://delawareinsurance.gov/departments/berg/ExamReports/AIGLIFE2006web.pdf; Restated Certificate of Incorporation of Am. Int’l Grp., Inc., State of Delaware Secretary of State (July 13, 2011), available at http://www.aig.com/Chartis/internet/US/en/CertificateofIncorporation_tcm3171-440365.pdf.
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