According to Frobes magazine a Republican created the AIG mess: ""The bottom line is that Hank Greenberg wandered out of the very safe, well-capitalized world of insurance into the surreal world of credit default swaps where you can create endless amount of risk,"" said Christopher Whalen, co-founder of Institutional Risk Analytics, which provides analysis and ratings to banks. Forbes -- http://tinyurl.com/c8g9p4 <http://tinyurl.com/c8g9p4>
ANALYSIS-AIG's meltdown has roots in Greenberg era: http://tinyurl.com/c8g9p4 <http://tinyurl.com/c8g9p4> NEW YORK (Reuters) - Maurice "Hank" Greenberg's legacy as the man who built AIG (nyse: AIG - news - people ) into the world's largest insurer was tarnished by a 2005 probe but questions about whether he created a financial monster that subsequently ran amok could cause greater damage to his image. The former Army captain -- who left AIG in 2005 amid allegations he used off-balance sheet transactions to improperly boost profits -- had previously been revered for his track record of steady profit growth over a 38-year tenure. In the years since he quit AIG, Greenberg has pursued other business interests, but much of his time has been spent defending his name and railing against a succession of CEOs who replaced him at AIG. But AIG's posting on Monday of a $61.7 billion quarterly loss, the biggest in corporate history, and the announcement of a third bailout by the U.S. government have prompted his critics to ask whether Greenberg planted the seeds of the financial disaster that already threatens to cost taxpayers $180 billion. Greenberg's creation more than two decades ago of a financial products unit, which has triggered the bulk of AIG's massive losses, is their main focus. Credit default swaps, or CDS, held by AIG Financial Products have been the biggest driver of AIG's losses, which have exceeded $100 billion over the past five quarters. "The bottom line is that Hank Greenberg wandered out of the very safe, well-capitalized world of insurance into the surreal world of credit default swaps where you can create endless amount of risk," said Christopher Whalen, co-founder of Institutional Risk Analytics, which provides analysis and ratings to banks. http://tinyurl.com/c8g9p4 <http://tinyurl.com/c8g9p4> ---------OffWorld
