Mr. B

Exclusive: Big Banks' Recent Profitability Due to AIG Scam?

There is always more to these situations than meets the eye. Given the lack of character of the participants, it is not hard to imagine that Paulson and Geithner have been less than honest with the taxpaying public.

The real problem at AIG-FP was the ability to write these "policies" without having to post collateral. A collateral requirement would have prevented this from ever happening. Instead, leverage was infinite. Now everyone gets to pay and the bailout is really for speculators, which could have been banks, hedge funds or other market participants. Add that to the outrage.