FC Member Blog

Who is really losing

BY Ranger Financial Services | 04-20-2010 | 5:33 PM

This blog is written by a member of our blogging community and expresses that member's views alone.

AIG's total TARP "facility" was $182bill but some $50bill was never drawn.
The amount of CDO's counter-partied by AIG by selling CDS's amounted
to approx. $70bill.
Apart from Goldman, there were another dozen U.S. banks etc that were
insuring(hedging) against CDO possible/probable losses with the insurer.
That aside,how much would have been returned to these banks(under the
conditions of the credit swaps) if Treasury had not agreed to cover those
"bets" at 100cents in the dollar(real worth maybe 10c/dollar) & at the
same time kept the cash-cow(AIG) from filing for Chapter 11 protection?
For mine, the only ones with any real "skin" in the game were the American
taxpayers who indirectly "covered all bets".
AIG sue?? I don't think so!!!And if it did & by some miraculous chance
succeed, any funds won through litigation should be immediately
confiscated by authorities & returned to Treasury

Ranger Financial Services

214-206-8060

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RangerFinancialServices