EternalHoH
Posts: 791
Joined: 5/30/2010 Status: offline
|
quote:
ORIGINAL: willbeurdaddy Most of what Spitzer did was extort settlements out of companies for practices that were long standing and legal. I used to work for one of those companies that Spitzer busted heads on (I had left the company before that). At the time, my former employer was AIG's biggest global competitor. Trust me, what they were caught doing was illegal. And just like it was one little department within AIG that took the whole company down, it was one little department within my former employer that was responsible there as well. Although over 4,000 were ultimately laid off due to the loss of business on account of the loss of trust (being in the brokering business, the existence of trust is essential or nobody does business with you), and the stock slumped to 25% of its value, thankfully, the company did survive the scandal, and because of the excessive scrutiny by the SEC in the following 5 years, they never went down the "drunk on derivatives" path that the rest of the financial/insurance industry did, and today, they survive while AIG resides in the govt-funded ICU. Today, I owe the survival of the company, and by extension, the survival of my pension, to the Spitzer crackdown, because if it had not happened, and the excessive scrutiny over those subsequent years had not been there, the company would have "done an AIG". When you acquire first-hand exposure to stuff like this, get back to me.
|