Post A Reply
my profile
login
|
register
|
search
|
faq
|
forum home
»
Allstocks.com's Bulletin Board
»
Off-Topic Post, Non Stock Talk
»
Obama in 9 Point lead over McCain
» Post A Reply
Post A Reply
Login Name:
Password:
Message Icon:
Message:
HTML is enabled.
UBB Code™ is enabled.
[QUOTE]Originally posted by Machiavelli: [QB] [QUOTE]Originally posted by glassman: [qb] i've been looking all over for a clear concise explanation of the CDS market, if there is one? i can't find it. [/qb][/QUOTE]this article might explain it somewhat the came out in the NY Post today: EX-AIGS ON THE HOT SEAT and... Last updated: 3:52 am October 7, 2008 Posted: 1:32 am October 7, 2008 Former AIG CEO Martin Sullivan and disgraced ex-governor Eliot Spitzer are expected to get the lion's share of blame in congressional hearings today on the AIG implosion. Former CEO Hank Greenberg claims he could have saved AIG from its $85 billion downfall if Spitzer had not driven him out as head of the company during a political "witch hunt." The revelation from inside the Greenberg camp came as both he and two top AIG figures were slated to appear before a congressional panel trying to unravel the AIG crisis, which triggered an unprecedented $85 billion government takeover. Several sources said Greenberg for years had methodically avoided the kind of toxic risk now blamed for wrecking much of Wall Street - [b]the so-called credit-default swaps (CDS) - esoteric bets on whether a company could repay its debt.[/b] "In the 9 months after [Greenberg] left the company, his successors took on more CDS than he ever had in seven years since they first emerged in the market," said one insider familiar with the crisis. Greenberg was forced out in 2004 as chairman-CEO after then-New York Attorney General Spitzer alleged that Greenberg concocted insurance products to help clients cook their books. No formal charges were filed against Greenberg. [b]AIG's woes began earlier this year when it wrote off $25 billion in assets - primarily the now-worthless CDS based on junk securities known as collateralized debt obligations (CDOs) created from subprime mortgages.[/b] "It took just nine months to destroy a company that took 40 years to build," said the source. Greenberg's successor as CEO, Martin Sullivan - who was later fired - is also scheduled to appear today along with AIG's ex-Chairman Robert Willumstad. [b]Greenberg originally sold a handful of similar CDS between 1995 and 2004 for European banks to cover credit lines among themselves, not risky bets like those based on junk mortgages. Greenberg's sale earned $5 billion for AIG.[/b] "There's no way Hank would have ever taken on such risks that Sullivan did. Hank held weekly meetings with senior management and had intimate knowledge of every detail on investments they made." "When Martin Sullivan took over, he eliminated those weekly meetings and removed all the controls that Hank had set up. Another senior insider said: "Marty took his eye off the ball for too long and wasn't paying attention that a train wreck was coming." Sullivan couldn't be reached for comment. [/QB][/QUOTE]
Instant Graemlins
Instant UBB Code™
What is UBB Code™?
Options
Disable Graemlins in this post.
*** Click here to review this topic. ***
Contact Us
|
Allstocks.com Message Board Home
© 1997 - 2021 Allstocks.com. All rights reserved.
Powered by
Infopop Corporation
UBB.classic™ 6.7.2