Earlier today we flagged that exchange between AIG CEO Ed Liddy and Rep. Gary Peters (D-MI), during Liddy’s testimony last week.
Peters asked Liddy about AIG’s how AIG’s internal risk management procedures could have failed so badly. In response, Liddy said that those procedures “generally were not allowed to go up into the financial-products business” that caused the firm’s collapse.
When Peters pressed Liddy on how that could be, the CEO replied:
[Y]ou need to get the people who ran FP — Mr. Cassano — and the people who ran AIG before my arrival, and ask them that question.
Peters clearly agrees with us that this is worth some follow up: a spokesman from his office tells TPMmuckraker that they’ve contacted AIG for a fuller explanation of just how the financial products unit was able to operate in such secrecy.
So you can add Peters’ office to the growing list of bodies that’s probing, formally or informally, various related aspects of the AIG fiasco.
When Peters pressed Liddy on how that could be, the CEO replied:
[Y]ou need to get the people who ran FP — Mr. Cassano — and the people who ran AIG before my arrival, and ask them that question.
Peters clearly agrees with us that this is worth some follow up: a spokesman from his office tells TPMmuckraker that they’ve contacted AIG for a fuller explanation of just how the financial products unit was able to operate in such secrecy.
So you can add Peters’ office to the growing list of bodies that’s probing, formally or informally, various related aspects of the AIG fiasco.
