AIG reported a $1.8 billion quarterly profit as Maurice "Hank" Greenberg, the company's former long-time über boss, paid $15 million to the SEC to settle (unrelated) fraud charges.
Quoth the WSJ:
We've got $180 billion (plus or minus a "Cash For Clunkers" program) invested in them, so I guess that's progress.
Meanwhile, Fannie Mae and Freddie Mac's chief regulator, James Lockhart, quit Wednesday amid news (via the
) that the Obama Administration is considering restructuring the two giant government mortgage companies using the "good bank, bad bank" model. That means all the toxic assets would be stripped out and given to a new "bad Freddie" while the good assets would remain with the companies, which is shareholder-owned but backed by $400 billion of taxpayers' assets.
a major independent mortgage funder (one which, incidentally, fed Freddie some of its bad loans), and yet news commentators everywhere are talking about the housing bottom and the end of the recession.