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AIG's financials and presentations didn't make clear what their collateral posting requirments were in the event of a downgrade or severe change in markt values. MBI and ABK had this info in some detail for years. My guess is AIG didn't control their exposure to collateral calls in the event of extreme temporary conditions....
Sep 18 11:56 am
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All Comments by Tom Armistead »AIG and the Derivative Nightmare [View article]
On Sep 18 11:05 AM glassbox wrote:
> TomArmistead, thanks for the clarification. I'm just trying to tie
> in how much more 'bailouts' we might have to see. Don't know if I
> am looking at it rightly but the US$85BN line to AIG seems a lot
> more than your probable losses of US$4BN.