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I am pleased to have Hank Greenberg as a fellow shareholder in AIG: he says things that make a lot of sense and people listen to him. I saw him make the same pitch for bailout III on TV: he makes a good case.
Dec 02 16:33 pm
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All Comments by Tom Armistead »Greenberg's Chutzpah [View article]
AIG's problems stem from the collateral requirements on the CDOs they insured, a bizarre episode where everybody agrees actual payments will be easily managed but the collateral called for in order to meet market prices is totally outside the realm of reason.
Bailout II stripped shareholders of 5/6 of the benefit of the expected difference between collateral requirements and actual losses.
The extraordinary negativity of those who have profitted by creating a financial Armegeddon has created a situation where the only guarantee that has any credibility at all belongs to the US Government.
It is time to stop vilifying AIG's management past and present and focus on restoring public confidence in our financial institutions.