Post Tagged with: "AIG"
AIG chairman says that you just don’t get it
It’s been almost three years to the day since AIG was bailed out. And guess what? AIG still owes taxpayers $49.4 BILLION! That’s more than half the budget of the Department of Education. What was that about taxpayers getting their money back, Steve? It’s not that we don’t “understand how this country works”, Steve. We understand it all too well–it works for you and your buddies on the AIG board. It’s not working out so well for the rest of us
Can Greece CDS Trigger A European Lehman?
In my view, a CDS trigger could be a Lehman-style event, yes. Moreover, only a hard restructuring – meaning principal reduction would actually have any meaningful impact on peripheral CDS or interest rates. So, I expect the euro zone periphery to continue to remain under stress until we reach that point
Why was AIG rescued after Lehman had failed?
According to former German finance minister Peer Steinbrück, AIG’s rescue had a lot to do with European pressure. Steinbrück: The investment bank Lehman Brothers collapsed on Sept. 15, 2008, and the world’s largest insurance company, AIG, was threatened with the same fate. I’m convinced that if AIG had gone under, the financial sector would have
AIG’s Cassano: Poster Child for Compensation Problems
Joseph J. Cassano, head of what was formerly an obscure 400 employee division of American International Group (AIG) with main offices in London, called AIG Financial Products (AIG-FP), testified today before the FCIC (Financial Crisis Inquiry Commission). The inability of AIG-FP to meet collateral calls by CDS (Credit Default Swaps) partners was a major trigger
Is AIG the main CDS insurer for Greek government debt?
Yves Smith and I received a tip at the weekend from a friend who reads the German press regularly about credit default swaps (CDS) on Greek government debt. Read Yves’ piece based on that article here. Below is mine. Previously, I had mentioned the CDS exposure of the hapless German Landesbanks (banks owned by the
Chart of the day: Clusterstock – How the AIG bailout worked
This is a great graphic showing the money and asset flows in the AIG bailout that makes it far easier to understand why people are calling the AIG bailout a backdoor bailout of AIG’s counterparties. Take a look. Source CHART OF THE DAY: How The AIG Bailout REALLY Worked – Clusterstock
Breaking: Darrell Issa asks for a subpoena in AIG bailout cover-up
I just received this document from an interested reader. It is a request by Congressman Darrell Issa for a subpoena to be issued in order to facilitate the investigation surrounding the AIG cover-up. Apparently, evidence has now surfaced about Federal Reserve Chairman Bernanke’s role in the AIG saga that is germane to this issue. This
AIG Documents protected until 2018 now revealed
In November 2008, the SEC approved a request by American International Group (AIG) to keep secret until November 2018 documents which reveal securities behind the brewing scandal over its bailout by the Federal Reserve. A copy of the SEC’s order revealed that the SEC’s Division of Corporation Finance ordered this "excluded information" not to be
Rationalizing cover-ups and AIG bailouts at the Fed
This comes from Ryan Chittum of the Columbia Journalism Review: Whatever Tim Geithner’s New York Fed was trying to hide in the AIG backdoor bailout was so volatile it was deemed worthy of national-security-like classification, and the Fed reacted to media FOIA requests for information by withholding more information. Reuters, gets the scoop on emails
CNBC: One-On-One with Buffett
The video is pretty all-encompassing and runs just under 30 minutes. Buffett is down on Kraft-Cadbury, raising rates and the bank tax. He is up on Wells Fargo. That sums it up pretty well. Quotes On Wells: Well, my guess is that the revenue and all of that is more or less like
Black and the AIG cover-up of the cover-up of the cover-up
I had originally looked to add this video to the last post on Black about the federal reserve. But the video here showing Black speaking to Bloomberg News about the recent AIG scandal and financial regulation deserves a post of its own. The question Black asks is why haven’t we seen a more thorough investigation
Bloomberg continues to push the Geithner-AIG cover-up issue
Below is the latest Bloomberg News video on the Geithner-AIG cover-up. Congressman Darrell Issa (R-CA), who learned by investigation that the NY Fed asked AIG to withhold information about payment to its counterparties, is now asking questions. The New York Fed has responded saying that Tim Geithner “played no role in” the deliberations and communication