Here’s a funny excerpt from the FCIC’s report on the causes of the financial crisis.In 2005, AIG consultants and employees had been analysing whether or not the insurance company should continue writing protection on subprime and Alt-A mortgages by attending meetings with bank analysts and other experts.
One of those meetings was with an analyst from Bear Stearns.
An AIG consultant who attended the meeting, Gary Gorton (who’s now a professor at Yale), told the FCIC:
[We all] thought he was “out of his mind” and “must be on drugs or something.”
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