Sullivan said that when credit markets seized up, AIG was forced to mark its $70 billion in CDO swap positions at "fire-sale prices" even though it believed the positions would have much higher values if held to maturity.Yeah, I feel for you. Even though my morale wasn't being pumped up by a nearly half million dollar retreat on the taxpayer's dime, I too can understand how it sucks to have to report on real value instead of what you "believe" should be. I remember trying to get a home loan based on my belief that I'd find a sack of money in the next few months that would allow me to pay off the loan while supporting my crack habit and stable of women too high priced for Eliot Spitzer.
08 October 2008
High Plains Grifters.
It's funny how AIG never complained about the mark-to-market rule while it was making them tons of phony money, but once the economy soured and they did nothing about it other than booking spa retreats in exclusive resorts, they're trying to blame the rule for their own poor oversight. Here's a summary of ousted CEO Martin Sullivan's attempt to cast blame on regulation: