Timmeh Geithner's Folly AIG somehow manages to get worse.

[AllentownJake]

A total of $150.0 billion in net notional amount of the super senior credit default swap (CDS) portfolio of AIGFP as of December 31, 2009, represented derivatives written for financial institutions, principally in Europe, which AIG understands to have been originally written primarily for the purpose of providing regulatory capital relief rather than for arbitrage purposes. The net fair value of the net derivative asset for these CDS transactions was $116 million at December 31, 2009.


http://market-ticker.denninger.net/archives/2017-Bombshell-In-AIG-10Q-Capital-Relief.html

Simple translation, AIG is sitting on a Nuclear Reactor of Credit Default Swaps with exposure to European Sovereign debt. If AIG would have been forced into receivership and liquidation, these contracts would have been null and void. They are currently not. If the laws would have been followed, these gambling bets would be null, now Uncle Sam is the House.

You the American Taxpayer are on the line for 150 billion because whiz kid Tim Geithner, can't do simple due diligence.

Which makes a logical question, what other nuclear bombs are sitting on AIG's books, ready to cost the American Taxpayer billions.

:shrug:

[upi402]

1. Again, neg recs

hmmmm LOL

+1

[AllentownJake]

3. The truth denial squad always in action nt.

[upi402]

8. They must be doing pretty well in these times

"Thank you very much"


Seems like the 'economics' forum is more progressive than 'GD'. Must be true what they say, facts have a liberal slant. I figure GD is a comfortable home for folks that get into the "red vs. blue" or "D's vs R's" horse race.

Glad this got posted.

[AllentownJake]

12. The Limousine Democrat set nt.

[cutlassmama]

2. GS playing with the world's economy

[AllentownJake]

4. and winning because they got Timmeh!

[gratuitous]

5. It used to be called a pig in a poke

Now we call it the American Way of Doing Business. I sell shit to you, you sell it to someone else, someone else sells it again, and on and on until it comes back to me. When one of us in the chain finally realizes that we're just sending shit around, the chain stops, we all total up our commissions, which we quickly pocket, then turn to the bottomless reserves of the American taxpayer to give all of us full value (as determined by us) for this piece of shit. We privatize the profit, socialize the loss, and scream bloody murder (or class warfare) if anyone suggests that the profiteers pay something approximating their fair share for the system that's enriched them so much.

[xchrom]

6. Geithner doesn't do John wayne

And the rescuing cavalry very well.
He always gets massacred.

He's a whole bunch of custers last stand rolled into one.

[AllentownJake]

15. How he has a job

Boggles my mind

[dixiegrrrrl]

7. so we are on the hook for EUROPE'S banks, too???

and rec....

[upi402]

9. Obama is responsible for this. I will not forget!

He picked these foxes to guard the hen house. Don't be fooled by the smile and tweaking the edges of quasi-reform.

[amborin]

10. k and r Geithner and the GS alums are all complicit; it's past time to fire them

[amborin]

11. AIG paid Goldman Sachs $37 billion of taxpayers' bailout $$$$$

"As much as $37 billion from federal bailout loans to American International Group Inc. has gone to investment banks including Goldman Sachs Group Inc., the firm Treasury Secretary Henry Paulson used to run. "

http://www.bloomberg.com/apps/news?pid=20601087&sid=aTzTYtlNHSG8&refer=home

[AllentownJake]

13. That is correct nt

[amborin]

14. so, if AIG needs more $$$$, they should ask GS for it! n/t

[Festivito]

16. Billions? HA! Try hundreds of TRILLIONS in derivatives...

...waiting to hit US and Obama whenever they want to make a point.

[AllentownJake]

17. AIG ceases to exist

Than there goes 1 trillion of them diffused based on bankruptcy laws.

[Festivito]

18. Except we're talking about FOUR times the whole world's total value.

It can't be absorbed. It's just a giant anti-matter bomb that destroys three-quarters of the planet in one quarter of a detonation, but has the ability to destroy bit by bit as well in a sinisterly controlled fashion.

It's so big that it's insane.