Condor27

AIG Downgrades Should Create an Endgame

Granted the downgrade requires AIG to provide an additional 14.5 billion of payments to counterparty's, but, it also gives them the right to terminate these contracts with the payment of an additional 4.6 billion (page 101 August 10-Q filing). If so was this the reason behind the 20 billion transfer approved by regulators yesterday as a necessary first step prior to any financing agreement. This removes the Credit default swaps from AIG's books!!


On Sep 16 03:16 AM gabe borenstein wrote:

> The real question during this debacle is why did the "short "rule
> was not extended by SEC.This would have allowed the FED ,Treasury
> and others involved for rational solution to the to the issues that
> financial system is facing .The open short interest has reached new
> high as some "hedge funds" are looking for money making opportunity.
>
> This systemic "bleeding" should be stopped as it could lead to unpredictable
> consequences .
> These problems were created over many (operational) years,now as
> they are being addressed ,decimation of the financial community is
> allowed .Rumors in the market allude to selling activity in Lehman(prior
> to the final outcome) and AIG shares by some prop desks -unbelievable.