Quantcast
| |  
Food for the Poor Godspy.com: Faith at the Edge

Advertisement

CATEGORIES:     BOOKSBUSINESSCULTUREFAITHISSUESLIFEMOVIESPOLITICSSCIENCE/TECHSPIRITUALITYTVWORLD
The Editors | 09.29.08

Business

Behind AIG’s Fall, Blind Eye to a Web of Risk

Gretchen Morgenson [Read the Article]

A fascinating peek at how a small unit that "flourished in a climate of opulent pay, lax oversight and blind faith in financial risk models" brought down AIG, the world's largest insurance company. "Although America’s housing collapse is often cited as having caused the crisis, the system was vulnerable because of intricate financial contracts known as credit derivatives, which insure debt holders against default. They are fashioned privately and beyond the ken of regulators — sometimes even beyond the understanding of executives peddling them. Originally intended to diminish risk and spread prosperity, these inventions instead magnified the impact of bad mortgages like the ones that felled Bear Stearns and Lehman and now threaten the entire economy."

Not Rated Yet
  • Currently Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
Login or Register to rate this!

Enjoy this post? Share it with others.

TOPICS:    aig | derivatives | greed | speculation
(0) COMMENTS

LOGIN



Not a member?
Click to Register with GODSPY Register here


Forgot your password? Forgot your password?

POST A COMMENT (Login Required)



Faith at the Edge Traces