SLABBED Daily – April 25

After neither of the two posts I had up yesterday morning were on MRGO,  Editilla sent me 100-year flood protection not enough for New Orleans, new report says just as I was beginning my very late in the day SLABBED Daily with the latest filing on MRGO docket.

Much to my surprise, there was nothing new on the docket yesterday when I checked early in the evening.  However, the Times Picayune ran Corps faulted for failing to mitigate MR-GO in this morning’s edition:

… University of California-Berkeley civil engineering professor Bob Bea testified in federal court on Friday…Bea, a longtime critic of the corps, said a corps-designed levee along the MR-GO would have been 2 feet to 5 feet higher, if the huge hill of dirt and clay hadn’t squeezed some of its soil into the canal channel like toothpaste being squeezed out of a tube with its end cut off…

…The result was a canal that was 70 feet deep in some areas and had expanded from its authorized 650-foot width to as much as 3,700 feet across in some spots.

“And so it’s a man-made circle,” Bea said. “You push it higher, it squeezes more in. It would be a nice dredging contract to have.”

Yesterday’s testimony also had a light moment when Bea compared the process to Sisyphus, a figure in Greek mythology who was doomed to roll a huge boulder up a hill. Continue reading “SLABBED Daily – April 25”

Moral Hazard? Slabbed wipes our a$$ with Moral Hazard Part 2 Contract Sanctity: Millions for Executive Bonuses, Screw the policyholders

In America, when you owe people money, you pay them.

Ed Liddy, CEO of AIG

It was the greatest company in history. In the insurance industry, there wasn’t anything like it.

Maurice ‘Hank” Greenberg taking credit for all the good at AIG and none of the bad.

Today we’ll continue analyzing the concept of Moral Hazard in the context of rule of law as differences in how contracts are honored are compared and contrasted. The result, as illustrated by Hurricane Katrina’s aftermath is that some contracts are more “sanctified” than others. Those who have been screwed by big insurance, especially AIG, knew immediately Ed Liddy wasn’t talking about their contracts when he was trying to fleece taxpayers  into paying those executive bonuses using that bogus rule of law argument.

Claims handing at AIG has enjoyed the reputation of being the most hard nosed, despicable sum bitches in the industry and Mr Greenberg deserves that credit too. People across the country have been shafted from small auto claims to large Katrina related homeowner claims so I was not surprised to see AIG once again in the news for shafting government contractors badly hurt in Iraq. We’ll start with a story from last August in the Charleston Gazette on Stan White’s troubles collecting from AIG unit American General Life Insurance Company:

The parents of an Iraq war veteran who died in his sleep in February while recovering from post-traumatic stress disorder have sued his insurance company after it refused to pay his life insurance.

In a lawsuit filed in Kanawha Circuit Court in July, Stan and Shirley White of Cross Lanes maintain that Houston-based American General Life Insurance Co. wrongly denied them the proceeds from their youngest son’s life insurance policy. Continue reading “Moral Hazard? Slabbed wipes our a$$ with Moral Hazard Part 2 Contract Sanctity: Millions for Executive Bonuses, Screw the policyholders”