Essentially the same applied to AIG – which was not even a bank, but an insurer. AIG was also a major counterparty. In this case, too, the government rescue package was intended to keep further shock waves from buffeting the financial system.
And in the case of the largest rescue operation in Germany, that to save Hypo Real Estate, customer deposits were not the main issue, either, but rather the danger of wide-ranging domino effects – on other banks; on the Pfandbrief market, for which the affected institution was a major issuer; and for insurers, for whom Pfandbriefe are key investments.