Calling out the AIG board

Where were the boards of directors as Wall Street firms melted down? Could they really have been so blind? At a general level, we have raised this issue. Now, at a more specific level, John Coffee of Columbia (a good source to lots of reporters) questions what the AIG board was thinking during the meltdown. He tells the Globe and Mail, "Auditors told the directors as of the beginning of this year that the company had a material weakness in its internal control policies because it didn't know how to properly value their credit default swaps and that proved to be fatal. The audit committee should have recognized that was the biggest single open artery." Governance hasn't gotten a lot of play and you have to wonder if any enforcement action is forthcoming. Plenty of investigations are underway.  

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- here's the article

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