AIG Deteriorating Over Personnel Losses

From the WSJ:

Amid the flap over bonuses at American International Group Inc. two of the company's top managers in Paris have resigned. Their moves have left the giant insurer and officials scrambling to replace them to avoid an unlikely but expensive situation in which billions in AIG trading contracts could default.

Defaults, by no means inevitable, could not only hurt AIG but also could force European banks involved in the trades to raise billions in capital to cushion potential losses, according to AIG documents.

So, in addition to mounting personnel losses in the U.S. (the financial products unit lost five key people yesterday), AIG units around the globe are now losing people, putting not only hundreds of billions of dollars of bank capital at risk, but the entire world economy. But hey, U.S. hack politicians are happy they got back a portion of that .001% portion of its government spending spree.