AIG: Before Credit Default Swaps, There Was Reinsurance [View article]
What may be wrong with the FAI-HIH letter is that is suggests that the reinsurance was not a true, risk-shifting transaction. It suggests, IMHO, that the reinsurance was a canard meant to window dress the financial statement of the purchasers of protection. Good questions.
AIG: Before Credit Default Swaps, There Was Reinsurance [View article]