Who Is Ed Liddy, and What Did He Do Before AIG?

Mainstream media have portrayed Ed Liddy, currently the $1-a-year head of embattled AIG, as a good guy who gamely took on a bad job, unwinding the trillions in bad deals that the Financial Products guys devised. Thursday's New Orleans Times-Picayune paints a slightly different picture. According to that story, Liddy ran Allstate Insurance during the first decade of its spinoff from Sears, a period during which the company perfected techniques for getting tougher with customers filing claims. And, there's this:

Evidence emerged after Hurricane Katrina that Allstate shifted the burden of paying for wind damage covered by its homeowners policies onto taxpayers by overcharging the federal flood program.

Overcharging the feds? Ring a more current bell?

Comments

[Chandra Bredel]

All is of this was forewarned, early in our history. forgot who said "Beware of the push for the Military-Industrial Complex"

Not all corporations are as criminal and vile, but most have shown their colors over the years and we still keep buying what they are selling. sometimes i fell like we are all F *% D.

[billbb]

President Dwight David Eisenhower

Back when Republicans were valued intelligence and had actual ideas of their own. Pity they paid no attention...

[badwalrus]

Thanks, Mr. Shearer. It's great to hear your voice once in awhile; I wish it was more often. This place could use you full-time...

[SueInCA]

When will people learn you cannot trust any CEO or corporation? They are not out to protect you, make you rich or help you out. The big corp in this country are out to make money for themselves and nothing else. Must we hear this again, you cannot expect different results when you make the same mistake over and over.

[badwalrus]

As a former CEO myself, I can say first hand that you are exagerating in a way that undermines true understanding of the genuine problems with corporate governance. Many CEO's, like myself, abjectly believe that damaging their constituen­ts/clients­/customers inevitably damages their business. It's as simple as that for many of us.

The problems that are razing our system now have more to do with looting and gaming the system by a handful of very powerful companies and their leadership who have the upper hand over those who are supposed to regulate them. There exists a toxic collusion between some of our elected officials and a small number of incredibly powerful corporate execs.

All corporations are not bad. America is built on honest, innovative, mutually beneficial businesses. The rest of us are getting a bad name because of a few - but you're thinking helps them do it. Please stop.

[fuzzwald]

There are enough bad apples in business and government to say that the failure is systemic. To get out of the current mess, we'll need to bust up these mega-mergersninto entities that can be carefully regulated. Then, we can do business the grownup way.

[heartlandjim]

It almost appears to me we have 4 or 5 thousand people running this country and they have 90% of all the money. They simply suffle from CEO job to CEO job and keep taking our money. They took it first in bonuses, then they crashed the market, devalued our homes; next will come inflation which will take even more - all the while these 5000 just get richer!! Am I Right!!!

[Georges Terryn]

It's a fact: 10% of the people own 90% of everything. So 30 million of the american citizens own 90% of everything. It's called the Pareto Law distribution. Of the top10 again 10% owns 90%: those are the filthy rich. This is true for every country, for every city, for the global population. It is probably a property of the sociology of capitalism. Since 10% owns 90% and we are talking of trillions. It necessarily follows that the same people who have everything, also hold the debts... Since they don't give each other credit anymore. It is about to collapse. The system is dead. They'll call a resurrection every six months, but the miracle will not happen.

[luziannagirl]

Allstate Insurance?

Well, that sounds about right. Worst excuse in America for an insurance company. And all this time I wondered if he were related to G. Gordon Liddy, the infamous Nixon Administration "dirty trickster" and Watergate head burglar.

Looks like I was too generous!

[fogbreath]

hey, all you need to run any business no matter what it is is an MBA.
you don't need to know that particular company, they are all the same.
just plug in the numbers and give the shareholders increasing profits each quarter and everything will be as it aught to be.
just ask any business school.

[twofish]

Thank you, Harry. These banksters just move from corporation to corporation, bringing their evil bags of tricks with them.

[JZ735]

The MSM love to cover the a--es of slimes like Liddy...poor little boy so misunderstand by the pitch fork wielding, unwashed masses! Cretins!