Did you listen to the testimony today of Liddy? I think he touched on this, but I’m not knowledgeable enough to really understand his answer. Something about they were in contracts with those foreign banks (and others) and obligated to pay?
Maybe you understand it better...
I don’t see that as the “real” story either. The TARP money was to some of the bad paper we foisted on the financial markets out of the way. That was afterall the conservative thing to do.
That AIG was used to buy up some of this paper not much of a story but rather a technical detail. That the US used AIG to buy up bad paper that was in foreign hand is possibly a good thing.