Tuesday, May 26, 2009
Signals Of AIG's Risks Offer A Lesson To Banks
Described as a "black hole," American International Group Inc. (AIG) is largely inscrutable - but not to everyone. Like the proverbial canary in the coal mine, key reinsurance markets delved deep into the operations of AIG and concluded that they could not sustain life.
Had investment banks had the benefit of the same insight, they might have averted the counterparty risks that required a substantial bailout orchestrated by the U.S. Treasury.
Why did reinsurance markets possess the insight that had eluded investment banks?
WSJ: Signals Of AIG's Risks Offer A Lesson To Banks
Had investment banks had the benefit of the same insight, they might have averted the counterparty risks that required a substantial bailout orchestrated by the U.S. Treasury.
Why did reinsurance markets possess the insight that had eluded investment banks?
WSJ: Signals Of AIG's Risks Offer A Lesson To Banks
Permalink posted by markw @ 4:48 AM 
 |
 |  |
  |
