To: All
There are indeed a lot of possible causes but I still have unanswered questions. Freepers are a smart lot, maybe I'll catch an answer here.
While I've not seen an exact dollar amount it appears to me that it's possible that the largest bundle of mortgage backed junk was written out of AIG's London office.
That raises the question as to why it was done out of London. Regulatory reasons or something else?
If anyone has any info on this, even if it's a false premise, I'd appreciate your info.
8 posted on
03/18/2009 12:17:03 PM PDT by
Proud_texan
(Scare people enough and they'll do anything.)
To: Proud_texan
"While I've not seen an exact dollar amount it appears to me that it's possible that the largest bundle of mortgage backed junk was written out of AIG's London office.
That raises the question as to why it was done out of London. Regulatory reasons or something else?"
Only an excerpt was posted above this thread. Follow the link for some of the answers. You'll probably be surprised.
16 posted on
03/18/2009 12:37:45 PM PDT by
familyop
(As painful as the global laxative might be, maybe our "one world" needs a good cleaning.)
To: Proud_texan
It says of the nearly $600 trillion in derivatives, that,...
"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."
But there's much more behind the link.
18 posted on
03/18/2009 12:41:09 PM PDT by
familyop
(As painful as the global laxative might be, maybe our "one world" needs a good cleaning.)
To: Proud_texan
“Regulatory reasons or something else?”
Yes, Regulatory laws. It states as much in the article.
21 posted on
03/18/2009 12:43:01 PM PDT by
rockinqsranch
(Dems, Libs, Socialists...Call 'em What you Will, They ALL have Fairies Living In Their Trees.)
To: Proud_texan
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 writeeven if it would bankrupt the company."
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