We didn’t let this company fail because Goldman Sachs had huge counter party risk with AIG, AIG’s unsecured debt would be temporarily worthless if they filed bankruptcy, Goldman Sachs held trillions? in AIG paper liabilities that they would have eaten had AIG gone bust.
In most cases AIG was a senior debt holder to the party going bust and buying “insurance” meaning their customer’s failure or default would result in their windfall.
AIG was insuring people’s own bad debt secured with their own stated values for a fee, like a bookie controlling both sides of a bet, they kept the insurance fee but not the insurance fee liability which they sold back to the same scammer that wanted protection on their shit paper.
Oh why didn’t we let this company fail?
We didn’t let this company fail because Goldman Sachs had huge counter party risk with AIG, AIG’s unsecured debt would be temporarily worthless if they filed bankruptcy, Goldman Sachs held trillions? in AIG paper liabilities that they would have eaten had AIG gone bust.
In most cases AIG was a senior debt holder to the party going bust and buying “insurance” meaning their customer’s failure or default would result in their windfall.
AIG was insuring people’s own bad debt secured with their own stated values for a fee, like a bookie controlling both sides of a bet, they kept the insurance fee but not the insurance fee liability which they sold back to the same scammer that wanted protection on their shit paper.
Odd Neel Kashkari……the $700 billion dollar man isn’t on the witness list.
You’d think “the architect” of the bailout would be a witness on the bailout screwjob trial.
Is there any question that the “bailout rescue” wasn’t ENTIRELY UNDER KASHKARI’s supervision?