Posts tagged "AIG"

AIG Accounting Fraud: No Admissions, Big Fines, Bad Ethics

The former Chief Executive Officer of AIG, Maurice Greenberg and his co-defendant, Howard Smith, AIG’s former chief financial officer, reached a settlement with the State of New York in a case of accounting fraud.

The case, which took more than 10 years to adjudicate ended with the two executives agreeing to fork over $9.9 million in performance bonuses. It sounds impressive until we understand that the state had sought more than $50 million and the executives refused to admit to fraud.

The executives were accused of participating in deals aimed at fooling investors into investing in the AIG company, one of the world’s leading insurance leaders.  Accounting fraud comes in many forms.  At the settlement, the State of New York stated:

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Posted by Chuck Gallagher in Accounting Ethics and tagged , , ,

From Wall Street to Main Street do Business Ethics Exist?

Due to the absence of financial regulation and unethical activity by many financial institutions, the United States faced the financial crash of 2008 and the economy plunged into what is frequently called the Great Recession. With the collapse of the economy, trillions of dollars in investment and millions of jobs vanished, but it mostly affected the confidence of people in the Business Ethics Wall Streetonce trusted financial institution and business people. US history witnessed the bankruptcy of Lehman Brothers, the exposure of Bernard Madoff as a fraudulent individual, the government bailout of AIG and other major bailout provisions designed to keep America financially stable.

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Posted by Chuck Gallagher in business ethics and tagged , , , , , , , , ,

Financial Meltdown? Where Were Our Government Leader’s Ethics? Comments by Ethics Speaker Chuck Gallagher

The words are “urgent action” as uttered by those in financial leadership in our country.  Action needs to be taken in order to avoid a financial meltdown.  Somehow, I would suspect that words similar to that were uttered immediately before the Great Depression.  Have we learned nothing from past history? Where were our government leader’s ethics?

According to CNN:

“You know, I share the outrage that people have,” said Paulson. “It’s embarrassing to look at this, and I think it’s embarrassing to the United States of America.”

“There is a lot of blame to go around – a lot of blame with big financial institutions that engaged in this irresponsible lending … blame to the people who made loans they shouldn’t have made, people who took out loans they shouldn’t have taken out,” said Paulson, who served as CEO of Wall Street giant Goldman Sachs for seven years before he became Treasury Secretary in 2006.

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Posted by Chuck Gallagher in Business and Personal Ethics, Choices and Consequences, Financial Crisis, Government Bail Out, New Website, politics, white collar crime and tagged , , , , , , , , , , , , , , , , , ,