The latest book for your shelf of credit crisis reads is FATAL RISK: A Cautionary Tale of AIG’s Corporate Suicide by Roddy Boyd.

It tells the tale of how Goldman Sachs and AIG entered a pas a deux — an intertwined dance that became a ballet of death for one of them, and a source of great riches for the other.

Most people’s understanding of the  2007-2009 subprime crisis includes only as passing knowledge of the AIG saga. You may only have a passing awareness of how Goldman Sachs collateral calls brought AIG to the brink. Fatal Risk goes deep into the weeds to flesh out the specifics of capital markets subsidiary AIG Financial Products (AIG-FP)  — how it was created, developed into a powerhouse, and eventually became the source of the lion’s share most of AIG’s profits — before it blew up, destroying AIG and helping to push the global economy to the brink.

Note the book is not for fans of Eliot Spitzer, who is blamed in part by the author for AIG’s collapse.


“Well-researched and highly readable account of the whole story behind the AIG disaster.”  -Amazon

“Roddy Boyd is one of the good guys. If you haven’t read his stuff before in the papers/magazines in which he has written, you will benefit from his book on AIG.”  -David Merkel

“Riveting read for anyone who wants to know the story of AIG and AIG Financial Products” -Amazon

Full chapter excerpt after the jump . . .

Fatal Risk: A Cautionary Tale of AIG’s Corporate Suicide

Category: Bailouts, Books

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3 Responses to “FATAL RISK: A Cautionary Tale of AIG’s Corporate Suicide”

  1. wngoju says:

    From the excerpt: “When Spitzer got Greenberg tossed out, he also removed someone willing to spend hours with underlings parsing the risk on transactions that were still on a drawingboard. He studied the nuances in Savage’s and later Cassano’s voices and learned when they had problems or were simply being theoretical”

    I’m sure this is 100% true. Whoops, I meant to say bs.

  2. gman says:

    wngoju, you found a paragraph that sound like it comes from a Marie Bartiromo puff interview w/ said Mr. Greenberg. BS,PR, CYA…all of the above. Enough to make me not read the book.

  3. wngoju says:

    @gman – ya. me too.