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Tag Archives: AIG

AIG’s CDO stuffing

William Cohan, author of “House of Cards” and a Bloomberg Television contributing editor, talks with Deirdre Bolton and Erik Schatzker about how collateralized debt obligations helped drive American International Group Inc. to the brink of disaster. Also today the Federal Reserve released the details of the Maiden Lane holdings… which includes the dreck described in […]

Lehman, AIG and repo… what an expensive mess…

More on Lehman, AIG and repo from Riski… I did want to point out that the Lehman Examiner (Jenner and Block) cost the estate $38 million dollars for their work… in contrast the Financial Crisis Inquiry Commission, which is tasked to examine the entire financial meltdown, has a budget of $8 million…. it is really shameful how […]

Unraveling the profit puzzle at Goldman Sachs I

From PBS’s Lehrer show… ” As part of his continuing series of reports making sense of business and the economy, Paul Solman examines the inner workings of investment powerhouse Goldman Sachs and how it makes money.”

Bernanke and AIG

Would someone please ask Chairman Bernanke about the remaining $1.6 trillion notional outstanding exposure of AIG and the American taxpayer?

Lucian Bebchuk of Harvard has made the best rebuttal to Chairman Bernanke’s defense of AIG counterparty payments at 100 cents on the dollar… but no one seems to be focused on the remaining CDS exposure of $1.6 trillion that AIG and the US taxpayers have… I think this might be an important point before the […]

Paulson, Bernanke and foreign banks

In this short clip from the Senate Banking Committee hearing of September 23, 2008 Senator Evan Bayh questions Secretary Paulson about why they will support foreign banks. Secretary Paulson says it’s on behalf of American taxpayers and Chairman Bernanke explains that these are efforts to prop up prices in markets. From Bloomberg… ~~~ “… The […]

Regulations should be organized on the premise that credit should be allocated to productive activities

Tax the speculators and create a public bank from therealnews.com Several mintues into the interview Robert Pollin, Professor of Economics and founding Co-Director of the Political Economy Research Institute (PERI) at the University of Massachusetts, Amherst says the following … ~~~ “… POLLIN: Well, I think the simplest idea, the simplest principle, is the financial system […]

Secretary Geithner should resign

I first published this post on November 21, 2009… I believe it is even more the case now. Timothy Geithner serves Wall Street. Our economy and nation will not be repaired until the control of Wall Street over the government, the Federal Reserve and the nation is broken. US Treasury Secretary Geithner should resign from office. […]

‘Too big to fail’ is too dumb to keep

An excellent opinion piece by John Kay, an economist, in the Financial Times … he begins by naming the litany of institutions that were brought down in the “Credit Crisis of 2007-2009″… He then describes the difficulty of regulating large, complex institutions with these words… “The variety of institutions is matched by the variety of […]

“In cases like this, the outcome is always along the lines of 50, 60 or 70 cents on the dollar”

~ We still don’t know why the Federal Reserve paid 100 cents on the dollar to the counterparties of AIG… the mystery is another mark against the “too big to fail” banks and their closely woven interconnection with the Federal Reserve … Bloomberg reminds us of a comparable closeout of a swaps transaction around the same time […]