But, but...this was all contained the last time the company lied about its current state... Looks like US Taxpayer Capital LLC will need some CDS salespeople/traders as it is the unwitting recipient of a $300 billion CDS book.
Feb. 26 (Bloomberg) -- American International Group Inc. may get a backstop from the U.S. to protect against further losses on credit-default swaps, according to a person familiar with the matter.
The federal guarantees may be included in New York-based AIG’s restructured bailout, which the company plans to disclose next week with fourth-quarter results, according to the person, who declined to be identified because the talks are private.
The insurer provided protection on more than $300 billion of assets through credit derivatives as of Sept. 30. Credit- default swaps pay the buyer face value on their debt holdings in exchange for the underlying securities if the borrower fails to meet its obligations.
Michelle Smith, a spokesman for the Federal Reserve, declined to comment as did the Treasury’s Isaac Baker and Joseph Norton of AIG.
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