"AIG's size and market significance meant it had the government over a barrel. The insurer's finance operations had grown far too big to fail, while operating in large part in the cracks between different regulators' territories.
"If the Fed and the Treasury have now done enough to stabilize the situation, that offsets some of the embarrassment of having to bail out their own initial bailout. Longer-term U.S. financial regulations need to capture any company that becomes so significant to the financial system.
"Rewriting the currently inadequate rule book is an important task for President-elect Barack Obama."
Wednesday, November 12, 2008
Honor Fat Rolls
AIG: America's New Open-Pit Money Mine