There were stories that when Client #9 forced Greenberg out, and was replaced by Democrat favoring types, AIG's underwriting became lax, which in turn, help fuel the financial crises towards the end of Bush43.
I didn't follow it well enough to remember if it was pro-Greenberg propaganda, or closer to the truth.
Keep in mind the Rat party is a criminal enterprise......
The goal of Barney Franks et al was to develop loans and for housing for all. They wanted Fanniemae/freddie mac as a DNC slush fund. To do that they knew there must be bad loans. To protect the banks there must be massive sales of loans and the development of hybrid securities. There must be insurance to back up all the bad loans.
AIG insured financial transactions. Hank was a straight arrow and would not permit the scam. He was done in. Eliot Spitzer was delegated the job of killing ol hank and getting him out of the way.
Hank got his revenge and destroyed Spitzer.
Destruction is too little. The Governor should have been done in as an example
Someone who knew and worked with Greenberg for decades told me that Greenberg always kept a meticulous eye on AIG's businesses, personally assessing the risk of every significant insurance policy. When Greenberg was forced out, this oversight stopped. Most significantly, Joseph Cassano, COO of the London unit, wrote hundreds of billions of business with virtually no oversight, all while drawing several million per month personally. The activities of the London unit was the casuse of the fall of AIG, which was a major contributing factor to the credit crisis. Further, Spitzer's hatred of Greenberg was founded in Greenberg's Republican politics. Add this to the other tricks the Democrats were playing in the markets in late August and early September of 2008 and you have a true scandal.
But you don't hear Matt Taibbi tell us this in his March 2009 Rolling Stone article. Instead, we are treated to the spin from the post-Greenberg Democrat crew that took over AIG:
Well, from what I understand, Greenberg didn’t really understand these instruments at all. And that’s one of the big problems, is that nobody understood them. The only people who understood these CDSs and these derivative instruments was the people who were actually writing these contracts. And this is a tiny, tiny unit. Again, it’s 377 people within a company of over 150,000 employees.
And basically, they were making so much money that AIG senior management said, “Oh, you know, great! As long as you tell us everything’s fine, we’re cool with that.” And they never really did any aggressive accounting of AIGFP, and they never really questioned any of the math that Joe Cassano was sending upstairs.
Hank Greenberg should write a book when this is over.
The Democrats are wrecking this country.