Everyone knows that the insurance giant AIG had an incredible collapse that few people really knew that was coming, even in the insurance industry but there were many warning signs that were there for company officials as well as employees but they chose not to listen.
According to the House select committee on oversight which did a study on AIG's downfall the writing was on the wall. Regulators have warned them five months in advance that they are was something fishy going on in the company's books but AIG's officials apparently didn't pay much mind to it. It looks to me that AIG's executives did the same thing that many Internet stock companies did before the collapse the stock market in the year 2000. I think that these problems could be solved in the future if our government put more stringent regulations and oversight in place to make sure that AIG's top brass invested their side cash wisely and not into very risky investments like commodities, energy and currencies. I mean yes, this side of their business was working magnificently for a good amount of time but this gravy train was bound to get short and run out of gas. If AIG would have focused most of its time and energy into focusing on its core business which was insurance then it would have never left itself wide open for this crash. This crash made the Enron crash look like a day in the park. All of this came about because of the greed of its top brass which make all of these risky investments and left its core business wide open for a knockout punch.
This all goes back to oversight. The Bush administration relaxed a lot of the regulatory factors on Wall street and many companies took advantage of this. Hopefully president elect will learn from the big mistake that the bush administration made on oversight over the business and investment practices of these top executives and force these companies to make the top CEO's work for its investors instead of just for their own pocket books. Now while i favored the bailout this time, it sure better not happen again. Fool me 3 times, shame on me. It is up to us, the American citizens to make sure that things like this dont happen again by making our voices heard by emailing our congress and through protests.
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