Saturday, March 28, 2009

The AIG Scam

Someone really needs to fucking go to jail.

Perhaps the most intriguing info is how the worst of the scamming was run out of LONDON:
To be sure, most of A.I.G. operated the way it always had, like a normal, regulated insurance company. (Its insurance divisions remain profitable today.) But one division, its “financial practices” unit in London, was filled with go-go financial wizards who devised new and clever ways of taking advantage of Wall Street’s insatiable appetite for mortgage-backed securities. Unlike many of the Wall Street investment banks, A.I.G. didn’t specialize in pooling subprime mortgages into securities. Instead, it sold credit-default swaps.

The article notes how integrally AIG was intertwined with the world-wide banking system, particularly in Europe. So some criminals in London basically ruined the world-wide financial system.

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