Gretchen Morgenson from the NY Times writes in Sunday’s paper about AIG in “Behind Biggest Insurer’s Crisis, A Blind Eye to a Web of Risk“. There are a lot of lessons here, mostly reminders of lessons you’d think were already learned.

There’s a failure of leadership when you look at the practices of AIG’s London office, which has been tossing around hand grenades for years. There’s a failure of corporate governance that allows the small London office’ to ignite the firestorm that brings AIG to the government’s front steps. There’s a flood of extraordinary compensation for the 400 people in the London office (more…)