Awful AIG lawsuit

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I could hardly believe my eyes reading about the lawsuit AIG is contemplating against the US government. As Dan Primack called them “Arrogant InGrates”. I recently finished reading “Too Big to Fail” and even there I was struck by the absolute hubris of the executives who screwed up so big and yet showed no sense of responsibility. At the time the US government offered the bailout money, the CEO of AIG was reported to have said with a smile “They blinked” !! In essence, save us or we will take the whole system down. It really looks like it is going to take a very long time for the “Wall St. Culture” of making a buck at any cost to go away and be replaced with some sense of responsibility and good ethical behavior. The entire synthetic CDOs was just a simple Ponzi scheme and to think that supposedly intelligent people making millions of dollars would allow it to happen is just depressing. No product got created, no innovation around better capital allocation, nothing; just different ways to move money around so that the bankers could take a cut along the way. What a bloody waste of talent.

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