A Senate hearing in March 2009 about the debacle at American International Group Inc. dispelled two oft-repeated myths.

The first was that AIG's notorious derivatives operation had fallen between the regulatory cracks. An hour and 17 minutes into the testimony, the acting director of the Office of Thrift Supervision, Scott Polakoff, offered up that it was his agency, as the consolidated company's regulator, that was responsible for the financial products unit.

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