Thursday, March 19, 2009

Can you say 1.6T...yeah, thats the AIG swaps trouble

The smoke screen from Obama about the bonuses is appalling enough then we have to consider the other massive problems our government has taken with AIG...not only are the tax payers on the hook for payouts to foreign banks...now it's coming fully around...guess what, the complete global bailout continues with the swaps trouble.
AIG COULD BE ON $1.6T HOOK FOR GLOBAL SWAPS
March 19, 2009 | Last updated: 2:03 am | nypost

The investors that own many of the derivative securities at the center of American International Group's collapse are among the world's and this country's biggest investors, sources told The Post.

People familiar with the matter said buyers of AIG Financial Products' derivatives, which consist mostly of collateralized debt obligations tied to mortgages, include Middle Eastern sovereign-wealth funds and the Chinese and Indian governments, which are also among the biggest holders of US Treasury securities.

Exactly how much AIG has in derivative exposure is subject to debate. While AIG's beleaguered CEO Ed Liddy told a House subcommittee yesterday that the insurer's exposure is around $1.6 trillion, others have dismissed that figure as not reflecting actual losses. more...

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