I wouldn't show up if I was Hank. He pointed out in a memo that less than 20% of the 200 CDOs were subprime under his watch. In the next 6 months after his watch AIG bought 200 more CDOs, most subprime. If you want to blame anybody, blame Sullivan. He hasn't got a clue...
Face the facts....Greenberg is not the only one to blame. He knew just how to exert control over the State Insurance Regulators to get what he wanted.
I bet a lot of Campaign Contributions went to States to get issues taken care of for AIG. Thats how Governors and Insurance Directors stay in power.
What a waste! AIG has played the shell game for years with State Regulators and all the State Regulators were SO AFRAID of AIG. Too much campaign contribution money to elect state officials in all 50 states and keep the special white washers on the Gravey Train in NYC.
State Regulators never got tough with AIG and made sure that everything would work out just right. No filed State Examination reports with Examination adjustments for years. Related party transactions shifting bad assets to entitys not being examined and transfering good assets in for window dressing.
The states failed by Contracting out work to Consulting firms who would not find anything wrong during examinations.
The elimination of the NAIC Zone system, was an underhanded way of curtailing honest reporting. When a Zone Examination was conducted there was integrity in the reporting process. Zone representatives would lower themselves to white wash examination reports the way outside consultants. The examination fees and Conus rates charged by Consultants are nice and high and the big money in examinations is something nobody wants to lose.
So now we are left with Examination Reports that are never filed and open to the public or else we are left with examination reports with NO findings in examinations and no adjustments to the Financial Statements.
Why? Because the consulting firms want to come back examination after examination cause the Big Money is so Good. The shareholders and policyholder are not important any more. Just ask the bald headed State Examiner Supervisor from Colorado who works for the firm out of Dover, DE. He has NO intention of leaving the NYC metropolitan area and will please the Company, please the State and let down the taxpayer.
This is a major failure. So all the finger pointing by the NAIC is meaningless and worthless. When the digging begins into the reasons why there will be a lot of imbarresed people.
Ya he reminds me of the character,Hiram Roth from the Godfather Part II. Always too sick and complaing about dying.
Look out for the Bald Headed Supervising Examiner from Colorado. He has looked away all the time.
Probably has some truth to it.
I was in the marines a few years back in Iraq and our c.o. informed us we would be getting a visit from Geraldo Rivera and a fox news team and that were to be respectful and if we couldn't say anything nice don't say anything at all, etc. As dutiful as we were to our warrior prince, most all of us grunts wiped our right hands between our ass cheeks as we stood at ease, and as he came down the line we all gleefully gave him the geraldo handshake!