Are AIG's Counterparties Being Protected Because They're Foreign? (AIG)

Business Insider ^ | 05 Mar 2009 | Joe Weisenthal

[Centurion2000]

Interesting theory. My own suspicions revolve around AIG’s significant control of assets belonging to American union pension funds.

Don't forget they control Congressional pensions as well.

[ding_dong_daddy_from_dumas]

If we had responsible congresscritters, they would demand that AIG (and others) disclose where every penny of the TARP and FED funds are going. If Bernanke refused, they would amend the Federal Reserve law.

[ga medic]

I called them guarantees instead of Swaps. The point is still the same. The issued insurance against loss on many mortgage backed securities, and didn’t have the capital to pay up. Many of the mortgage backed securities were sub-prime, and defaulted and AIG can’t pay. There were many, many banks that held subprime backed mortgage securities and AIG credit default swaps, that will go under if the bailout of AIG doesn’t continue.