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AIG's role in financial crisis explored

 In the latest installment of The Washington Post's look at the ways in which Wall Street innovation outpaced Washington regulation, Robert O'Harrow Jr. and Brady Dennis look at the role played by American International Group (AIG). They find that many of the most compelling aspects of the economic cataclysm can be seen through the story of AIG and its Financial Products unit: the failure of credit-rating firms, the absence of meaningful federal regulation, the mistaken belief that private contracts did not pose systemic risk, the veneration of computer models and quantitative analysis.

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