http://www.bloomberg.com/news/2010-10-05/aig-s-bob-lewis-chief-risk-officer-during-crisis-steps-down-from-insurer.html
This whole situation is getting harder and harder to believe.
This guy was the chief risk officer, how could he have not known?
American International Group Inc. Chief Risk Officer Robert Lewis is resigning after saying this year that the insurer underestimated the risk of derivative contracts tied to subprime mortgages.
“We were wrong about how bad things could get,” Lewis told the Financial Crisis Inquiry Commission in June. “What ended up happening was so extreme that it was beyond anything we had planned for.”
An Understatement’
Lewis said he didn’t know that derivatives backing mortgage-linked securities had collateral-call provisions until after Goldman Sachs Group Inc. made its first demand in July 2007, according to the FCIC documents. When asked if the provisions caused consternation within AIG, Lewis said, “I would say that’s an understatement.”
“I only became aware of the collateral calls completely in the latter part of 2007,” Lewis said at the FCIC hearing.
