U.S. To Backstop AIG's (AIG) Credit Default Swaps... WTF
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The government may provide a backstop against further losses on AIG's (NYSE: AIG) credit default swaps, Bloomberg is reporting. This just seems plain crazy!
From 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.
Just call the U.S. a bunch of fools for letting this AIG situation happen. It is a complete outrage!
From 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.
Just call the U.S. a bunch of fools for letting this AIG situation happen. It is a complete outrage!
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