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Do you have a cite on the CDSs never getting paid? Not saying I don't believe you, just couldn't find it on my own. I checked on the projected profit, and it'
by jbooth 14y ago
Do you have a cite on the CDSs never getting paid? Not saying I don't believe you, just couldn't find it on my own.
I checked on the projected profit, and it's quite a projection, based on the fact that the gov't is currently selling off from 70% ownership of AIG to 61%. So basically, that seems to me that all of AIG's operating profits are going to buying back stock from the government. Which is great. But the government still ate it on the initial bailout and if those CDSs were paid out and kept the banks afloat, it was done with government money.
- jcampbell1 14y agoSee the letter in this article. AIG didn't default on its obligations (thanks to the government), so there was nothing to trigger payment to GS. http://articles.businessinsider.com/2009-04-14/wall_street/30055605_1_aig-bailout-credit-default-hedges http://articles.businessinsider.com/2009-04-14/wall_street/3...
- jcampbell1 14y agoYou seem to be clinging hard to the notion that the bailed out banks were able to pay the money back largely because AIG was bailed out, and the government is going to lose big on AIG, which was really a backdoor bailout to the other banks. Two years ago, I would have agreed with that 100%. AIG has recovered far better that I would have expected, and the government will likely get the money back from AIG, albeit much slower than the banks.
- tedunangst 14y agoI think it's worth noting that the people who really ate it are the original AIG shareholders. They lost a lot more than the taxpayers will.