The securities-lending division was obligated to repay or roll over most of its loans every 30 days. AIG Investments placed much of the cash in subprime debt that matured in two to five years. It didn't have to liquidate the positions, as long as other banks and dealers were willing to place more cash with AIG, according to people familiar with the matter.
In mid 2007 AIG had $94 billion in this, and the taxpayer was hit for $30 billion in this alone.
But Win Neuger, the risk manager who signed off on the program, and cost you, the taxpayer billions and billion sof dollars, didn't lose his high paying job:
AIG is in the process of splitting up AIG Investments as it prepares to sell the business of investing third-party assets, which Mr. Neuger plans to continue overseeing when it is spun off.
His pay? $7.8 million.
Post a Comment