If AIG had been allowed to fail, what type of financial institutions would have been adversely affected? That is, who benefited from the bailout of AIG?
If AIG had been allowed to fail the counterparties of AIG would have been adversely affected. When the Federal Reserve took an informal poll of counterparties, UBS was the only counterparty willing to take a cut of 2% to its payout. All other counterparties were not willing to ...
This solution explains which financial institutions gained the most from AIG bailout. The references related to the answer are also included.