What Cooked The World's Economy?

The Village Voice ^ | January 28, 2009 | James Lieber

[Madame Dufarge]

That raises the question as to why it was done out of London. Regulatory reasons or something else?

From the article:

"The heart of darkness was the AIG Financial Products (AIGFP) office in London, where a large proportion of the derivatives were written. AIG had placed this unit outside American borders, which meant that it would not have to abide by American insurance reserve requirements. In other words, the derivatives clerks in London could sell as many products as they could write—even if it would bankrupt the company."

[Windflier]

There isn't enough money in the world to unwind those positions.

I'm trying to think of a solution to this. What can we do? Would it be possible to mount a global prosecution of all these felons and seize their money and assets to recoup some of our money?

[Windflier]

Billy Jeff again...

And let's not forget that Alan Greenspan successfully lobbied congress to repeal the Glass - Steagal Act.

[La.daddyrabbit]

Thanks for a very informative reply!