AIG Faces $10 Billion in Losses on Trades

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It seems that there is no end to this morass:

According to the WSJ:

American International Group Inc. owes Wall Street's biggest firms about $10 billion for speculative trades that have soured, according to people familiar with the matter, underscoring the challenges the insurer faces as it seeks to recover under a U.S. government rescue plan...

The fresh $10 billion bill is particularly challenging because the terms of the current $150 billion rescue package for AIG don't cover those debts. The structure of the soured deals raises questions about how the insurer will raise the funds to pay the debts. The Federal Reserve, which lent AIG billions of dollars to stay afloat, has no immediate plans to help AIG pay off the speculative trades...
 
This company is run by the biggest douchebags. Everytime a story pops up about AIG, I cringe. Taxpayer dollars at work right there, and who knows how mucht the government is really on the hook for. They are a major writer of CDS coverage.
 
Can you imagine the size and number of positions these idiots have taken. Down a $160 million dollars now that's a draw down
 
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