AIG's Catastrophic Miscalculation

And because of that complacency, the board gives Marty Sullivan a complete vote of confidence.

I find all of this so discouraging, especially when you consider -- as is becoming quite obvious -- that the actual foreclosure numbers, so far, are nowhere near as bad as the cumulative losses that the institutions are taking; the portfolio of AIG, at least as it was stated in December, couldn't possibly have that kind of exposure.

Here's what should happen. The SEC should get that presentation and match it against the statements raised in conjunction with the fund raising. Some action must be taken here. If AIG can get away with this kind of misstatement, then what is the point of enforcing any statements by management? When I look at the nitpicking the SEC gives on regular quarterly reports and I consider these colossal misstatements, I figure that if you make the mistakes big enough you get away with it.

This one's the worst travesty of all, worse even than UBS(UBS Quote - Cramer on UBS - Stock Picks). But no one loses his job and Maurice Greenberg's protests just sound like so many sour grapes.

It's astounding it all went down like this.

And yet people will give the company money. In this era, there is always money. No one gets winnowed out. Every company stays in business except Bear Stearns(BSC Quote - Cramer on BSC - Stock Picks). And the agony takes much longer than if we just had the closings and consolidations that amount to a purge of the ne'er-do-wells and a fresh start for everybody else.

« Previous Page

1 2 3

Next Page »