The insurance in question would only pay off under some very improbable and dire circumstances. And under these circumstances the chances of getting a payoff ar

The insurance in question would only pay off under some very improbable and dire circumstances. And under these circumstances the chances of getting a payoff are rather slim because, you know, the world is crashing and burning. Some time during the crisis the risk became very real which was reflected in the market prices of credit protections. But DB and "investors" continued to act as if the risk was small. What I don't get is who paid for that risk in the end. I suspect it was the government which bailed everyone out with public money so that the doomsday scenario was never realized.