Sunday, March 22, 2009

What Really Happened

If you, like me, have wondered what the hell actually happened to bring us to this full-metal jacket economic meltdown, then you, like me, might enjoy this article.

Here's just a taste:
For six months before its meltdown, according to insiders, [AIG] had been searching for a full-time chief financial officer and a chief risk-assessment officer, but never got around to hiring either. That meant that the 18th-largest company in the world had no one checking to make sure its balance sheet was safe and no one keeping track of how much cash and assets the firm had on hand. The situation was so bad that when outside consultants were called in a few weeks before the bailout, senior executives were unable to answer even the most basic questions about their company — like, for instance, how much exposure the firm had to the residential-mortgage market.


Joan said...

What a great example of having too many execs with no one knowing what the other is doing. It shows none of them were too necessary. How amazing that a financial institution wouldn't have rushed to get a financial office filled.

Kristopher said...

And the regulators were not regulating. No one should be allowed to get "too big to fail"