Fraud probe into UK firm's role in collapse of world's largest insurer AIG
Read more: http://www.dailymail.co.uk/news/article-1143740/Fraud-probe-UK-firms-role-collapse-worlds-largest-insurer-AIG.html#ixzz1KrvzDs42
Neuger ran AIG's Global Investment Corporation securities lending program.
Here's one example of what his group did:
- Take a portfolio that had been throwing off about four basis points of profit since inception in the 1990s and in 2005 began imposing a 30-basis point profit target, taking on the risk of having to improve margins 7.5 times (aka a naked grab for yield)
Not that it's only his fault that senior management didn't know - that was obviously one of their biggest problems, too.
From Financial Investigator:
Dozens of interviews with senior AIG corporate and financial officials testify to the fact that prior to the summer of 2008 few in the company’s upper ranks had an awareness of the program.
Read more: http://www.businessinsider.com/actually-it-might-be-all-win-neugers-fault-aig-collapsed-not-goldman-sachs-2010-7#ixzz1KxH2t6EJ