Blame Spitzer : His AIG probe triggered the firm's biggest mistake

New York Post ^ | 4/20/2009 | CHARLES GASPARINO

[SeekAndFind]

SO maybe Eliot Spitzer did kill AIG, after all.

Nobody doubts the in surance giant is basically kaput, or that the promix ate cause is billions in losses in obscure instruments known as credit-default swaps, or CDSs. But American International Group didn't go deadly deep into CDSs until after New York Attorney General Spitzer had forced out Maurice "Hank" Greenberg out as CEO.

GO back to March 2005, just days after Spitzer scored his biggest scalp during his eight-year tenure as the Sheriff of Wall Street by compelling Greenberg's departure. The new CEO, long-time AIG executive Martin Sullivan, held an important meeting.

According to people with direct knowledge of the event, Sullivan summoned the business heads from all of AIG's various divisions. Spitzer, according to people at AIG, had helped to force Greenberg out as CEO (and later as chairman) amid a wide-ranging probe of the firm's accounting practices.

But Sullivan's message wasn't about the past, it was about the future: Greenberg was gone, but AIG would survive -- and thrive. He said that the executives needed to stay focused and move the business forward.

Then he prodded the execs, saying that while doing this, they should also have "some fun."

[Bahbah]

or that the promix ate cause

They make no effort to proofread, do they.

[Riodacat]

Yah, never go after bad guys cause they may be replaced by even worse bad guys.

[capydick]

Hank may have been a prick but, he had old school business acumen and would never have let the FP division get out of hand like it did.

[MAD-AS-HELL]

So along with the need to screw hookers in the ass, he also screwed AIG in the rear too!

[koraz]

Hank may have been a prick but, he had old school business acumen and would never have let the FP division get out of hand like it did.

Agreed!

[FlameThrower]

Hank may have been a prick but, he had old school business acumen and would never have let the FP division get out of hand like it did.

Agree, too.

Hank was a difficult man to work for -- and had his limits. But they were lightyears beyond anyone else in the insurance industry. About the crusade to remove him from the empire he built: it brings to mind the old observation about cutting one's throat to cure a nose bleed.

[Mr Ducklips]

Absolutely right.

[capydick]

Would like to see him return - just like MacArthur to the Philippines

[appeal2]

The fact is Greenberg was a major republican contributor. Warren Buffett who was on the other side of the questionable trades but being a major dim contributor, escaped unscathed. Elliot Spitzer was a disaster on so many levels.

[NormsRevenge]

there’s something about NY politicos, No?

spitzer, schumer, rangel, bloomberg

must be the water

[SierraWasp]

Finally!!! Someone is putting in print what I've believed to be true for a long time!!! He has been the triggerman, trying to act like Eliot Ness while shaking down large insurers for campaign contribs like Jesse Jackson!!!

Frankly, I add Spitzer to Frank and Dodd and Reines and Waters and Gorelick and a whole passel of Demonicrats who just love to hassel, no matter what their malicious mischief triggers in our fragile economy!!!

When their crazy crappola knocks the props out from under American capitalism, they all stand around with a (BLEEP) eatin grin, wiping their chins and giving anyone who will listen the "Bart Simpson Defense!"

These dangerous Demicrats are despicable and have no redeeming social value!!!

[dfwgator]

Blame the SEC. If they had been doing their job in the first place, Spitzer would have never have had to get involved.