Before the storm: No calm at AIG

The financial crisis at AIG (AIG) exploded in the media in a big way in 2008. But a full year before that, executives and others at the now disgraced insurer were voicing concern about the company's financial products units, which eventually imploded. The issue eventually became "the hottest subject at 70 Pine," according to one email.

The Washington Post reviewed thousands of emails and concluded that they "offer the most revealing look yet at AIG's inner struggles, they also underscore the main obstacle to federal prosecutors assessing individual culpability for the financial crisis." There was a lot of division behind the unified public stance. Many questions were raised about the mathematical models behind the financial products unit. The top dogs in the unit tried hard to convince others that the unit posed no risk to the company. There were many questions streaming in from ratings agencies, auditors and regulators.

Goldman Sachs (GS) really forced the issue when it took issue with AIG's analysis-and issued a collateral call. One manager wrote in email, "This isn't what I signed up [for]. Where are the big trades, high fives and celebratory closing dinners you promised?"

For more:
- here's the article

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