AIG....Capitalizing Banks or Unwinding Positions ?

[libertad]

AIG subpoenaed on CDS. New York Attorney General Andrew Cuomo subpoenaed AIG (AIG) yesterday for information on its credit default swaps contracts. At issue are contracts going back seven months and involving billions of dollars, some of which have subsequently been wound down by AIG's Financial Products unit. Cuomo said "CDS contracts were at the heart of AIG's meltdown. The question is whether the contracts are being wound down properly and efficiently or whether they have become a vehicle for funneling billions in taxpayer dollars to capitalize banks all over the world."
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Interesting....

The real question of course is that ....

Banks are keeping their positions with a failure to fully enact mark to market....

Thus the question becomes just how is it that AIG can unwind....

Another question being ....

Has GS been a recipient of tax dollars via AIG....and if GS pays back TARP funds early....Is this not fungible tax dollars they are paying TARP ?

 

[RAY]

Quote from libertad:

AIG subpoenaed on CDS. New York Attorney General Andrew Cuomo subpoenaed AIG (AIG) yesterday for information on its credit default swaps contracts. At issue are contracts going back seven months and involving billions of dollars, some of which have subsequently been wound down by AIG's Financial Products unit. Cuomo said "CDS contracts were at the heart of AIG's meltdown. The question is whether the contracts are being wound down properly and efficiently or whether they have become a vehicle for funneling billions in taxpayer dollars to capitalize banks all over the world."
............................................................................................

Interesting....

The real question of course is that ....

Banks are keeping their positions with a failure to fully enact mark to market....

Thus the question becomes just how is it that AIG can unwind....

Another question being ....

Has GS been a recipient of tax dollars via AIG....and if GS pays back TARP funds early....Is this not fungible tax dollars they are paying TARP ?

While the media was jerking off some bonuses; the real Money has been going to AIG counterparts.

What upsets me is that every player should have had skin in the game.

AIG/WE pays out dollar for dollar...

AIG Guy: "Hey GS good buddy, we are fVcking toast man and sorry about that 10 Billion we owe you. Unless we can find a source for 100's of Billions of dollars to make us whole."

GS Guy: "Well, in university, I was told by some very self important people that, The Average America is dumb..."

AIG Guy: "Really, I have an idea. Lets make a call... Mr Geitner, how are you?"

G replies: "Rolling Solo hard to get people that want to do my work. What can I do for you?"

AIG: "We Figure the Citizens are dumb enough for this; we are in bad shape here. AWWE MAN!! You wouldn't believe the shit we were writing !... Never mind, that's not important. Tell your homies in DC to send us some money."

G says: 'Yeah, but were will this money come from?"

AIG guy: "The future man ... Don't you know the future is HOT, HOT, HOT. Plus, it's OK, because we have so much shit our family's are set for generations. And then they can tax everyone else 75%."

GS Guy to AIG Guy: "Thanks Man, we needed that 10 Billion. Maybe with the pay-offs we can tell these Americans that we can be profitable this quarter.