Lockstep Investing

AIG Becomes the Fed’s Vehicle to Buy Toxic Assets

Very interesting perspective. It makes sense. The whole idea of a FRE and FNM wind down in the middle of the real estate meltdown seemed like another voluntary self-inflicted wound imho. Also, AIG is holding the key to tremendous amounts of Tier 1 capital in Europe, so it is also a "can't fail" entity that must be propped up in the interest of "National Security".

It will be interesting to see how Geithner spins role of the Treasury in this next term.