Tuesday, March 03, 2009



“AIG exploited a huge gap in the regulatory system, there was no oversight of the financial- products division, this was a hedge fund basically that was attached to a large and stable insurance company.”
...
The company “made huge numbers of irresponsible bets, took huge losses, there was no regulatory oversight because there was a gap in the system,” Bernanke said. At the same time, officials “had no choice but to try and stabilize the system” by aiding the firm.
...
In another sign of tighter regulation to come, Bernanke said supervisors should have authority to bar new financial products that may be destabilizing to markets.
...
Critics including former AIG Chief Executive Officer Maurice “Hank” Greenberg said the strategy of breaking apart the insurer and selling units wouldn’t reap enough to repay AIG loans. Banks relied on AIG’s financial products unit to back about $298 billion of assets through derivative contracts at year-end, making the firm a “systemically significant failing institution” that has to be propped up, the Treasury said.

... "credit-default swaps", the ponzi deal of the century ...
... encourages banks to help their customers go bankrupt ...
... so the actual owner of the instrument ...
... PLUS another zillion of voltures betting aganst the customers ...
... can earn a profit ...
... nice ...


# posted by intcoex : 3:57 PM




<< Home

This page is powered by Blogger. Isn't yours?

Subscribe to Posts [Atom]