Rumpole

AIG: How It Spent Your Tax Money

From my reading, it looked like JPM was the only bank doing major league buying at the LEH CDS auction. But what I really want to know is who else other than AIG did the underwriting of LEH CDSs; it's these companies who could go bust on Tuesday. Or should I guess that it might have been GS and MS based on the where the first AIG bailout payments ended up??

The End of Supervised Entities - Now What About Swaps?

Tell me something, will the $700 billion bailout allow parties whose CDS obligations were triggered by the BSC, AIG, LEH, WAMU or other failures to dump them onto the taxpayer?? If so, I guess Paulson's successor will be back begging for more money from Congress except this time she/he will be prostrate rather than on one knee!