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| Who's Who on AIG's List of Counterparties |
| 2009-03-17 |
| According to its filing, AIG has directly posted over $22 billion in collateral on these deals, and Maiden Lane III, an entity set up by the Treasury, has posted an additional $27 billion. Of that, $11 billion has gone to France's Société Générale, $5.4 billion to Deutsche Bank, and $8.1 billion to Goldman Sachs. These deals are vestiges of the financial ingenuity of AIG's Financial Products Group. Some $165 million in bonus payments to executives from this division has drawn outrage from the White House to Congress and New York State Attorney General Andrew Cuomo since they were revealed on Mar. 14. The second big block of AIG payouts stems from a business its insurance units did in lending out securities in which they had invested to customers for fees. When the borrowers returned those securities and demanded back the collateral that they'd put up, it cost AIG another $43.7 billion. Of that, England's Barclays got $7 billion, Deutsche Bank $6.4 billion, BNP Paribas $4.9 billion, and Goldman $4.8 billion. It's worth noting, however, that these names would arise in any large financial institutions' dealings, because they are the major players in these markets. |
| Posted by:ed |
| #5 > So who wants to get rid of all regulators now? ME! The government should regulate their own currency monopoly for price stability as nowadays credit (m1+) is fungible with money (m0). They should do this via regulating reserves based not on a fixed %age, but on a %age that changes with affordability (e.g fn(av-house-price/ av-wage)). Then leave banks to do their allocating role. |
| Posted by: Bright Pebbles the flatulent 2009-03-17 22:36 |
| #4 No regulators at all would be better than regulators that are bought and paid for. There wouldn't be the illusion of security where there isn't any. |
| Posted by: Thing From Snowy Mountain 2009-03-17 22:32 |
| #3 Of course, this doesn't make the papers in quite the same splashy fashion as the $160 some million bonuses, does it? Good thing some of the money went to the impoverished nations of Western Europe. That would be pure hell if the Germans had to pay for Deutsche Bank, or France had to pony up for Societe Generale without our cash, wouldn't it? |
| Posted by: Cornsilk Blondie 2009-03-17 22:13 |
| #2 So who wants to get rid of all regulators now? Can we all be centrists? |
| Posted by: Skunky Ebbusose2105 2009-03-17 16:47 |
| #1 At least it's all starting to unwind. If I understand correctly (and I probably don't)it's highly likely the counterparties owe a good deal more on their dealings in fancy derivatives instruments than they received from AIG, so the money they received is likely flowing out as fast as it came in. Surely this is a good thing, however painful? |
| Posted by: trailing wife 2009-03-17 10:30 |