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I have been following this case along with ther others and this whole AIG debacle comes from a few offices overseas. I cannot believe how one division(that is the Financial Product Division) brought down an Entire Company
I will be the first to apologize to those who are either employees, subsidaries, even executives at all the other profitable parts of AIG who had nothing to do with the CDS the Hedge Fund Division screwed up.
AIG was a great company, but when Martin Sullivan took over, things got insane in the investment department.
It angers me when I here people say, cancel my policy, etc. These empolyees and execs probably lost there stock options and will pay a great price in there jobs.
My heart goes out to the 99.9% good people at AIG, my middle finger goes to the irresponsible derivative traders.
This is the same at most banks and brokerages that got into this mess. It was a handful of people who brought down some great companies. The employees pay with layoffs and reduced hours, and stock prices that have tanked. Let's face it, the executives and the investment arms of these corporations are solely responsible, but they didn't care because the money was flowing in their direction. Who cares about future fallout? I have my millions, right?
I am sure that derivative traders share a large brunt of the blame but the other 99.9% weren't so "innocent" either... its like saying the getaway driver to a bank robbery is "innocent" of commiting robbery...
I can see where you are coming from blaming the derivative traders, but the government also deserves blame as well. These derivative traders and hedge fund managers were allowed to do what they did based on a failure of the government to regulate the industry and/or removing regulations from this industry.
I don't think this will be the last time something like this will happen, either. There are a whole host of investment schemes out there that are "questionable" and have a similar chance of blowing up and bringing down the economy if the conditions are right.
I am sure that derivative traders share a large brunt of the blame but the other 99.9% weren't so "innocent" either... its like saying the getaway driver to a bank robbery is "innocent" of commiting robbery...
but they are not really partner's in crime
they are separate doing a different job
It is like blaming the car salesman that sold the car to the bank robbers, how would he know they would rob a bank?
There are companies that choose to participate unethical behavior and there are companies that don't.
Personally, I don't care which department you work in at a company whose upper echelon condones irresponsible business practices. If I have a choice to get the product from another company that doesn't engage in shenanigans, that's the company I'm going with. And for that matter, that's the company I'd choose to be employed by, were I in that industry.
People can vote with their pocketbooks. Social disapproval (executed via the marketplace) is and always will be a powerful influence on the behavior of individuals and corporations.
As much as you disagree with people blaming the "innocent," I disagree with people who simply shrug and say "most" were not to blame and therefore everyone should conduct business as usual. How about the mother of four who works as a clerk at Philip Morris? How about the charitable branch of the Nazi party?
I've read that some employees of AIG are resigning in disgust with their own company. I applaud them.
Too bad AIG did not structure its divisions as seperstely financed subsidiaries. Then the finance doivision could have simply bankrupted and let the rest of the company survive.
Spitzer went after Hank Greenberg and, effectively, forced him out of AIG. Had Greenberg still been running the company, I doubt whether he would have allowed them to go down the CDS route.
Spitzer went after Hank Greenberg and, effectively, forced him out of AIG. Had Greenberg still been running the company, I doubt whether he would have allowed them to go down the CDS route.
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The employees pay with layoffs and reduced hours, and stock prices that have tanked. Let's face it, the executives and the investment arms of these corporations are solely responsible, but they didn't care because the money was flowing in their direction. Who cares about future fallout? I have my millions, right? 
