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The Mindset of an AIG executive

dave_donhoff
15 years ago

http://www.businessweek.com/careers/managementiq/archives/2009/03/the_mindset_of.html?chan=top+news_top+news+index+-+temp_news+%2B+analysis

The Mindset of an AIG executive

The Mindset of an AIG executive

Posted by: Diane Brady on March 25

<_snip>
A few things struck me in the "resignation letter" of Jake DeSantis, an executive vice president of the American International GroupÂs financial products unit. (People donÂt normally forward their letters of resignation to The New York Times)

First, of course, is his justified sense of outrage at having been abandoned by his boss, AIG chief Ed Liddy, before Congress and at having his bonus essentially taken away. "Like you, I was asked to work for an annual salary of $1, and I agreed out of a sense of duty to the company and to the public officials who have come to its aid. Having now been let down by both, I can no longer justify spending 10, 12, 14 hours a day away from my family for the benefit of those who have let me down."

But a few other sentences stand out in my mind as emblematic of the mindset that has created some of this mess.

"I was in no way involved in  or responsible for  the credit default swap transactions that have hamstrung A.I.G." The list of who to vilify grows ever smaller. Even colleagues in the financial products unit are determined to distance themselves from the credit default swaps. These were highly profitable products produced by highly compensated (and, I would guess, much celebrated) people when times were good. Now, it would appear that a handful of largely anonymousÂand now departedÂexecutives are responsible for AIGÂs downfall, not an institution that fostered and rewarded a culture of risk.

More at the link;

The Mindset of an AIG executive

http://www.businessweek.com/careers/managementiq/archives/2009/03/the_mindset_of.html?chan=top+news_top+news+index+-+temp_news+%2B+analysis

The Mindset of an AIG executive

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