"In a separate suit today, the Regents of the University of California made similar fraud claims against AIG.
“Plaintiffs suffered tens of billions of dollars in losses, at least, based on false and materially misleading statements that AIG, certain of its executives, directors, underwriters and outside auditor made,” according to the complaint.
The funds accused the company, Sullivan and others of violating Illinois and federal securities laws, committing common law fraud and being unjustly enriched. They asked for unspecified money damages....
The Regents complaint, filed in federal court in San Francisco, alleges the company hid its exposure to subprime mortgages from 2006 to 2008, inflating the price of its stock and causing the university system to take losses when its AIG shares fell."
Op Ed at Daily Bruin:
"His failure to exude professionalism demonstrates an incapacity to filter and refine his own thoughts and actions. And as with any highly visible and influential position, basic prudence is a baseline requirement – especially in a position like UC regent, where decisions affecting thousands of students need to be pored over and carefully considered. Pattiz’ inability to perform even this essential agency shows that he is most certainly unfit to be a figure of authority – let alone a regent.
If Pattiz has any self respect left, he needs to resign from his post as regent and let the board appoint a more capable member. If he chooses to steadfastly maintain his position, he will only serve as a counterproductive force on the board, going directly against the public service principles the regents strive for. And this is especially egregious, considering the board has made fighting sexual harassment and assault a priority for students and employees. As the Bruin has said before, enacting Title IX reforms while keeping someone so pugnacious on the board compromises the regents’ credibility as an agent of legitimate change in this regard.
[Editorial: UC administrator’s actions do not reflect their own Title IX policies]
Certainly, it’s no secret that the regents are immune to many of the rules they impose on students and employees, and given that the California state legislature has to get involved in order to remove Pattiz, it is quite difficult for the other regents to strip him of his position. The new sexual harassment rules for the regents offer some hope, but they are disproportionate to the discrediting things Pattiz has said and done.
Pattiz has damaged his professional record beyond repair, and resigning remains the only step forward for him. Of course, we can all naively believe that the Pattiz from the tapes – which were recorded in May – is different from the Pattiz who makes administrative decisions, but you can’t teach an old dog new tricks. Pattiz has revealed his true colors, and they most certainly don’t shine blue and gold."