Chris Whalen: United States Risks Credit Rating Downgrade With Continued Support Of AIG And Citigroup

AIG is a dead duck.

As most of you know, embattled AIG interim CEO Frank Liddy resigned last week.  Likely having realized AIG would need to ask for billions more in taxpayer subsidies, Liddy made the intelligent personal decision to step away quietly.  He was unqualified for the position from the outset (he ran Allstate, a quiet domestic insurer) and was already heavily conflicted with his service on the board of Goldman Sachs, the largest recipient of AIG counterparty payouts.

Site favorite, Chris Whalen of Institutional Risk Analytics, weighed in recently on AIG, Liddy, Citigroup and the entire sordid mess of government-sponsored zombie corporations.  The most interesting observation from the short clip is Whalen's contention that Treasury risks a sovereign debt ratings downgrade with continued support of the aforementioned failing GSEs.

Tip to James for finding this video; an outstanding clip from Bloomberg is after the loop.

Comments

[Sell Short]

This is GREAT NEWS!!!!

SEC charging ex-Countrywide CEO Mozilo with fraud
SEC charging former Countrywide CEO Angelo Mozilo, 2 other execs with civil fraud

WASHINGTON (AP) -- The government is charging Angelo Mozilo, the former chief executive of mortgage lender Countrywide Financial Corp., and two other company executives with civil fraud.



The case brought by the Securities and Exchange Commission also accuses Mozilo of illegal insider trading, according to an agency spokesman.

Countrywide was a major player in the subprime mortgage market, the collapse of which in 2007 touched off the financial crisis that has gripped the U.S. and global economies.

Mozilo is the most high-profile individual to face formal charges from the federal government in the aftermath of the crisis.

Mozilo's attorney did not immediately return an e-mail message for comment Thursday afternoon

[James H]

@Sell Short

I just got home and saw the headline and my first thought was that a couple of Daily Bailers were going to be pretty freakin' happy. Great news, indeed. Any thoughts on who's next?

[DailyBail]

@Sell Short

I know how this in particular makes you happy. Mozillo deserves to spend some time in orange. You think they have tanning beds in prison?

[Sell Short]

@ James and @ DailyBail:

Yes!! I'm very thrilled to see this. I can say this news made my day. You guys don't know how excited I am!! :)

[Ain't Bullshittin']

"Tange-Ho"....not "Tangelo Mozillo". Can't wait to see his cell mate.....Hope it's a big boy who digs men who take care of their appearance! Wonder how that first night will go over? Can't you just hear it now....."That's right...don't stop......who's loving big daddy now?.........;)

[spideydouble]

One down. A thousand to go. This will make me even happier once I hear the verdict of conviction and appropriate judgment. Congrats Sell Short.

Someone should set up a satirical "Wanted: Stimulated or Recovered" site with posters of these bad actors in the style of the old American Wild West wanted postings. Track these fraudsters like the Implode-O-Meter. Political cartoon caricatures in Outlaw/Pirate/Gangster/Villain dress with brief witty summaries of why they are wanted (i.e. the great "contributions" to society they have made and their "connectedness" to financial and political persons of fine pedigree) and the reward (in paperclips maybe) would be hilarious and cathartic. To avoid libel charges, you could mask the names using pseudonyms. Any likeness to real persons is purely coincidental and all that eh? Just a thought.