Happy New Year
Hopefully it’s better than the last but let’s see how it’s starting out –
Portlandic points out that Michelle Malkin will be on C-Span this weekend and provides contact info if you want to ask a question –
C-SPAN2 this weekend features:
A monthly LIVE author interview,
featuring your calls, emails, and tweets
Sunday 12-3 PM ET, re-airs Monday at 12 AM ET
This month we talk with author and columnist Michelle Malkin. Ms. Malkin, a blogger and Fox News contributor, is the author of four books:
Invasion: How America Still Welcomes Terrorists, Criminals, and Other Foreign Menaces to Our Shores (2002),
In Defense of Internment: The Case for ‘Racial Profiling’ in World War II and the War on Terror (2004),
Unhinged: Exposing Liberals Gone Wild (2005), and
Culture of Corruption: Obama and His Team of Tax Cheats, Crooks, and Cronies (2009).
You can participate in the discussion by calling in during the program:
East/Central Time Zone: 202-737-0001
Mountain/Pacific Time Zone: 202-737-0002
Or you can email your questions for Ms. Malkin prior to the program: firstname.lastname@example.org or tweet at http://twitter.com/bookTV
Joseph Stiglitz argues that Keynesian economics do work – Talk amongst yourselves on this one. (h/t)
The suit alleges that AIG executives ignored warnings and intentionally downplayed the extent of the company’s troubles. In its response, AIG conceded that its executives were optimistic, but denied any intent to deceive. “Being wrong or even unwise, in hindsight, is not the same as violating the securities laws,” the company wrote.
This is a tough one? At what point does trying to project a positive air and save a struggling business / unit cross the line into fraud. If I am an investor I have to do my homework, but if company executives are deliberately hiding information I need to make that decision then it seems like that verges on theft by deception.
Whether any violations occurred, the e-mails show AIG executives laboring to understand the flaws in Financial Products’ once-vaunted mathematical models and debating what and how much to disclose to investors.
To me that is no-brainer – everything. Maybe if people had been a little more forthcoming some of this current crap could have been avoided
Publicly, Cassano and other AIG executives — including Habayeb — presented a unified front of confidence. That optimism was unremarkable at the time, when the Dow was pushing 14,000, AIG’s stock price remained relatively strong and most Americans had no inkling of the subprime calamity just around the corner.
Privately, however, executives found themselves in the financial equivalent of the fog of war, as one of the world’s most successful companies began its descent to the epicenter of last year’s financial collapse.
And at some point someone needed to stand up and say alright things are not going well instead of just smiling and jerking us off.
Read the rest but the damning part to me is the fact that AIG was warned in November 2007 by auditors that they could have a “material weakness” in Financial products, but the still made an overly optimistic presentation to investors Dec 5th and didn’t disclose the problem to the SEC until Feb 2008.
The auditors’ use of the phrase was potentially significant. A material weakness reflects uncertainty about the accuracy of a company’s financial statements. Under SEC rules, companies must disclose a material weakness to its investors, if one exists.
I don’t think people should be criminally penalized for normal business failures but this seems to be much more than that. NOTE: This is based off one story and I realize that there is always another side, I am just using this story as a general talking point. It is very possible that once all this comes out in court a much different picture will emerge. I am not prejudging guilt on anyone at AIG.
The Other McCain has moved – now I have to figure out how to update the link.