A story a day on AIG. So it’s someone elses fault now on the securities debacle. They didn’t have any problem selling these securities to foreign and domestic banks and then getting bailed out by the taxpayer to pay these banks back. This organization has been rotten to the core for many years going back to the under the table kickback schemes they participated on with Marsh. The taxpayer has really been ripped off by this outlaw company.
AIG did not sell any securities – a CDO is not a security, it’s an obligation to pay when the underlying security defaults. The banks created the “securities/bonds” and AIG insured the values of them. When the values tanked then the CDOs were triggered.
Like everyone else leading up to 2008, AIG did not do their homework on the underlying securities because they were too busy counting the cash- they got taken for a ride by the big boys on wall street. Lesson learned: don’t insure something you don’t understand.
Example: Goldman buys a CDO from AIG, meaning AIG is insuring the value of the underlying asset. The underlying asset tanks and AIG is responsible paying the difference between the new value and the contract price. Goldman gets paid and AIG/taxpayers lose.
A story a day on AIG. So it’s someone elses fault now on the securities debacle. They didn’t have any problem selling these securities to foreign and domestic banks and then getting bailed out by the taxpayer to pay these banks back. This organization has been rotten to the core for many years going back to the under the table kickback schemes they participated on with Marsh. The taxpayer has really been ripped off by this outlaw company.
Agent,
AIG did not sell any securities – a CDO is not a security, it’s an obligation to pay when the underlying security defaults. The banks created the “securities/bonds” and AIG insured the values of them. When the values tanked then the CDOs were triggered.
Like everyone else leading up to 2008, AIG did not do their homework on the underlying securities because they were too busy counting the cash- they got taken for a ride by the big boys on wall street. Lesson learned: don’t insure something you don’t understand.
Example: Goldman buys a CDO from AIG, meaning AIG is insuring the value of the underlying asset. The underlying asset tanks and AIG is responsible paying the difference between the new value and the contract price. Goldman gets paid and AIG/taxpayers lose.