Sunday, April 3, 2005
Is there any comparison between AIG and Enron. That seems to be the question these days?
Co-blogger Peter Henning raised the issue on March 29th as to whether "AIG was the Next?" Enron (although he hated to use that term) in a post here. He stated:
"Is AIG going to end up like Enron? I doubt it, because Enron (and WorldCom) had flawed business models, and at this point there does not appear to be the same problem at AIG."
Looks like the New York Times has been looking into the question, as this a.m.'s paper has a piece titled, "A.I.G.: Whiter Shade of Enron." Author Grethen Morgenson starts by saying that "As companies go, Enron was all smoke and mirrors; A.I.G. is substance." But she then continues to show the similarities between these two companies. But also notes that "[u]nlike Enron, the situation at A.I.G. is not remotely as dire." She finds that AIG is no Enron.
I guess that some similarities are simplistic here - both companies had a problem revealed; both companies had people who were/are the subject of an extensive investigation. But I guess I wonder how many other companies out there have the same problem, but have not been the subject of investigations? And how many other companies are getting the message that someone can look over your shoulder any time they want to? The message- Get with it - and clean up your act.