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. Sphere: Related Content
Bookmark this post with:
5 comments:
It seems to me that if the US taxpayer is going to have to counterparty these swaps, we have the right to know who it is getting paid from the swaps. I can't imagine that at this point it's not in our best interest as a taxpayer to just put AIG into bankruptcy and let the people that bought the CDS deal with the ramifications.
What the US is trying to do right now is beyond stupid. There is no way we can backstop everyone in the entire world. This system is going to repel and really show the brain dead fed reserve what its up against.
""talks are private" Bullshit! Private my ass! How about indictments for the whole lot of these criminals?"
If LBJ were in Congress, he'd be issuing subpoenes to get names. And he'd be holding hearings, and sending people to jail if they didn't testify.
He'd also break up the big 6 to 10 banks, and give power back to the regional players.
Alas, Congress has no one with a spine.
where can I send a resume???
i forget what the number of the website is
Post a Comment