uggabugga





Tuesday, March 03, 2009

Potential big story?

Here's the full post at But Then What:
AIG: Can We Get Some Transparency Here?

You know that somethings rotten in Denmark when the editorial pages of the Wall Street Journal and the New York Times agree on something. That cats laying down with dogs event occurred today and it was prompted by the latest bailout of AIG.

Both newspapers opined that it was past high time for the government to come clean as to who we were actually bailing out. You see, the government keeps saying that AIG is systemically important and dollars keep flowing out of the company to make good on various credit default swaps contracts that the company entered into but no one will say to whom this money is flowing.

The Fed and the Treasury are stonewalling and, of course, conspiracy stories are starting to swirl. One holds that Goldman has been one of the chief beneficiaries of the bailout. Goldman naturally denies that and says that although they bought a lot of protection, they were able to hedge their exposure. Another and probably more on the mark theory is that the money is flowing to European banks who were big AIG customers.

If it is the European banks then that one is going to be embarrassing to say the least. The taxpayer is pretty fed up with supporting U.S. banks. If they get wind of a scheme to use their dollars to prop up European banks look out. I wouldn’t want to try and explain the intricacies of international finance and inter-dependency to them.

Regardless of to whom the money has been directed, I suspect that the pressure to open up about it is going to get pretty intense. Clearly there’s something here the government doesn’t want to have to deal with otherwise they wouldn’t be so tight lipped. The problem is that you can never keep a lid on this sort of thing. Look for the leaks soon.
Here's my thought: The money is going to the European banks. But to a significant degree, the money the European banks were playing with was from the oil-rich Middle East. If that can be proved, can you imagine the furor over giving money to AIG which flows through to European banks in order to make whole a bunch of wealthy Arab potentates.



2 comments

This article gives a hint what the Fed is up to through AIG and the Maiden Lane corporations.

"Maiden Lane III already has agreed to buy CDOs with a total principal amount of about $53 billion, AIG says.

Those deals have led to the termination of $46 billion in CDS arrangements and should lead to the termination of $74 billion in CDS arrangements, AIG says."

So Maiden Lane III buys the toxic asset from the counterparties with the deal that the counterparties then cancel the credit default swap they hold against AIG. According to Kohn yesterday:

"The New York Reserve Bank made a secured, non-recourse loan in the amount of $24.3 billion to another special purpose limited liability company (Maiden Lane III). Maiden Lane III then purchased, at market prices, multi-sector collateralized debt obligations with a par value of approximately $62 billion from credit default swap counterparties of Financial Products in return for the agreement of the counterparties to terminate the credit default swaps. AIG provided $5 billion in equity to Maiden Lane III to absorb future losses on the CDOs held by Maiden Lane III."

So these purchases of CDOs were not on par, but AIG is still providing cash to make sure that the two Maiden Lanes set up to deal with its problems lose no money (as is required by law). It was creative accounting like this that led to the $61 billion loss by AIG in its fourth quarter last year.

By Blogger bolo, at 3/06/2009 8:19 AM  

性感美女泳裝照下載 性感美女桌布下載 性感美女照片 性感美女圖片下載 性感美女寫真 性感美女寫真桌布 性感美女寫真桌布下載 性感美女影片 性感美女影片免費下載 性感美眉 性感美眉換裝遊戲 性感美眉圖片 性感美眉影片 性感風騷女老師 性感辣妹免費影片 性感辣妹免費影片 性感熱舞 性感熱舞影片 性感熱舞影片下載 性福免費影片分享 性福影片分享 性福影片免費分享區 放羊的星星影片 林玉紫的風騷 松島楓天國之愛下載 松島楓引退影片下載免費 松島楓手機主題下載 松島楓免費下載 松島楓免費圖片 松島楓免費影片 松島楓免費影片下 松島楓免費影片下載 松島楓免費影片下載香港 松島楓免費影片下載預 松島楓免費影片下載預覽 松島楓免費影片區 松島楓告白影片下載 松島楓的主題下載 松島楓短片下載 松島楓寫真下載 松島楓影片 松島楓影片下載 松島楓影片下載BT 松島楓影片下載點 松島楓影片免費觀看 松島楓影片短片下載 視訊 美眉 免費看妹妹 模特兒 免費視訊聊天 msn視訊美女 即時通視訊交友 ut聊天室 松島楓影片觀看 松島楓線上影片 武則天免費視訊聊天室 武則天視訊聊天室 武則天影音視訊聊天室 波霸西美女寫真 波霸美女個人寫真 波霸美女寫真 波霸美女寫真集 波霸美女寫真集影片 波霸美女寫真影片 波霸美眉露出大咪咪影片 波霸辣妹寫真集 玩美女人短片試看片 玩美女人影音館 肥熊短片免費試看 金玉彬性感熱舞 金門豆豆聊天室 阿砲哥歐美免費視訊交友 勁舞團舞步影片欣賞 威馬持久液影片分享 威寶視訊交友 宣宣成人片免費下載 帥哥美女排行榜 按摩性感美女的免費影片 春宮影片直播 流行音樂視聽網 流傳檳榔西施影片分享 美女免費陪您聊天 美女桌布 美女淋浴寫真集圖片 美女聊天 美女短片免費試看 美女短片試看 美女短片試看區 美女視訊 美女視訊免費看 美女視訊聊天 美女視訊電話聊天 美女視訊影片下載 美女照片 美女遊戲 美女圖 美女圖片 美女寫真 美女寫真集 美女寫真集圖片 美女寫真圖片 視訊 美眉

By Blogger look, at 3/06/2009 7:38 PM  

Post a Comment