AIG points finger at London branch for nearly bringing the company down.

Really2

http://www.google.com/hostednews/ukpress/article/ALeqM5iH9UMhcIjyzMXefMqcLbzRuFqDHw

"Broadcaster ABC has claimed that the Mayfair-based team, led by American trader Joseph Cassano, risked half a trillion dollars (£359 billion) investing in the toxic US mortgage market"

So the brits nearly bring down an American company, headed by and American by investing in the American mortgage market.

Seem to have mentioned America a lot in that statement;)

cogito

You're not Gordon Brown by any chance?

Really2

Just pointing out that perhaps if that was the case why the hell did they not know what was happening.

It is like pointing out a member of staff as a companys downfall and ignoring the fact the manager knew nothing about what they were doing and just signing off everything they did without looking.

Belive me if I was within that company I would want to know why they had nearly £400bn to play with, without the apparent knowladge of the parent company.

Count_Dante

I see some @rse covering by AIG here. When some US politician asks why AIG are in the excrement, they can simply blame 'the Brits'.

I suppose AIG let this team get on without much oversight when profits were good. I imagine they were doing the financial equivalent of betting on Man Utd to beat West Brom and collecting good returns month after month until the unthinkable happens and West Brom beat Man Utd and ruination beckons.

lostinrates

cogito wrote: »

You're not Gordon Brown by any chance?

Good point, thing is, it is no different is it? apart from we have more to lose from Brown alienating US than US does in offending us.

Really2

lostinrates wrote: »

Good point, thing is, it is no different is it? apart from we have more to lose from Brown alienating US than US does in offending us.

True, where else are we going to get $50bn conman and companys wrapping up sub prime debt as prime, poor cars etc.:D

Hang on min.

purch

So the brits nearly bring down an American company

You will find that most of the 'muppets' in Cassano's team are septics too !!!!

lostinrates

Really2 wrote: »

True, where else are we going to $50bn conman and companys wrapping up sub prime debt as prime, poor cars etc.:D

Hang on min.

I know nothing about cars, but we'll find precious few here from what I gather from this place, we have more than enough of our own subprime lending without needing to look abroad for it, and we've had our own share of con men, (I was going to give a list, then thought a popularist move wouldbe a Labour PM and then decided you could make your own list).

I get a little scared with all this pointing of fingers 'Westward' that we ourselves will forget the shoddy practices here: and that bodes poorly for us.

Really2

lostinrates wrote: »

I know nothing about cars, but we'll find precious few here from what I gather from this place, we have more than enough of our own subprime lending without needing to look abroad for it, and we've had our own share of con men, (I was going to give a list, then thought a popularist move wouldbe a Labour PM and then decided you could make your own list).

I get a little scared with all this pointing of fingers 'Westward' that we ourselves will forget the shoddy practices here: and that bodes poorly for us.

As you may see it was tong in cheek.

But Sorry our sub prime lending is no where near comparible. Our idea of subprime was 100%+ Mortgage that totaled 5% of all mortgages.

America had 30% of its mortgage book at 125%+.

No one argues shody practices over here but nearly all will tel you it was not done anything like the excesses in the US.
By saying pointing of fingers 'Westward' (depends if you are facing north or south:)) you kind of forget what the post is about and what they invested in:)

lostinrates

Really2 wrote: »

As you may see it was tong in cheek.

But Sorry our sub prime lending is no where near comparible. Our idea of subprime was 100%+ Mortgage that totaled 5% of all mortgages.

America had 30% of its mortgage book at 125%+.

No one argues shody practices over here but nearly all will tel you it was not done anything like the excesses in the US.
By saying pointing of fingers 'Westward' (depends if you are facing nort or south:)) you kind of forget what the post is about and what they invested in:)

No, I didn't and I am very interested in this; possibly seeing a bit of relevance here for us and seeing it mirror something else ATM. But I do not agree our subprime lending is limited to mortages

Really2

lostinrates wrote: »

But I do not agree our subprime lending is limited to mortages

Lending in general wordwide tends to have a element of sub prime (you borrow becuase you can not fund it outright without credit). I think it is unwise to think we were worse than any one else.

Our banks were crippled by wrapped up subprime debts we are now 18 month+ in and we do not seem to have a subprime time bomb sureley it should have shown by now.

Add to that people in NE can not just walk away from debt in the UK i think our lending is a lot less "risky"

What areas do you think we have acted riskier than other countrys?