Saturday, March 21, 2009
Is AIG's regulated insurance business a fraud, too
Emptywheel, following on something Atrios pointed out, looks at the re-insurance side of AIG.It seems that AIG was using its own companies to reinsure itself. Instead of spreading risk outside of itself, it spun it around and around inside of its financial structure, but outside of its ostensible balance sheet. Sort of like a giant risk based check kiting scheme, easy enough to do when your only regulation is state based and you can reach across state and national borders to achieve your ends. It is time for a long, deep look at AIG.
Subscribe to Posts [Atom]
Post a Comment