Jp: Dave and I wrote about the complexities inherent to both these large market companies (like Citi and AIG) and the products they offer.
I’m not making excuses, but I’m willing to bet good money that AIG’s CEO didn’t have a clue as to how AIGFP’s products worked, other than that division was making piles of money. Further, he was reassured by all of his analysts, and the rating companies that the products were safe and low risk. Not wanting to look a gift horse in the mouth and not wanting to risk upending that cash register, he motored happily along with everyone else until AIG went into the ditch.
