Washington — Lehman Brothers, Merrill Lynch & Co. Inc., and American International Group Inc. (AIG) have at least one thing in common: They owned depositories but were not overseen by the Federal Reserve Board.

Each own a thrift but opted not to use the holding company structure laid out in the Gramm-Leach-Bliley Act of 1999. That left oversight to either the Office of Thrift Supervision or the Securities and Exchange Commission, neither of which has as much power as the Fed's authority over financial holding companies.

Register or login for access to this item and much more

All Digital Insurance content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access