Quote:
Originally Posted by teomaxxx
AIG bonuses is just drama for sheeps.
they should some of them put them in jail for writting CDS contracts they didnt have money to pay off (not even 5% of them). that was a fucking fraud.
wait, they would have to admit that regulators let the fraud run before their eyes and that CDS contracts are often based on fraud (there is no money to cover the losses)
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here is the summary of guys who are one of the best analytics, when it comes to the financial industry. he is saying the same as me, the CDS contracts from AIG were based on fraud:
"The key point is that neither the public, the Fed nor the Treasury seem to understand is that the CDS contracts written by AIG with these various non-insurers around the world were shams - with no correlation between "fees" paid and the risk assumed. These were not valid contracts as Fed Chairman Ben Bernanke, Treasury Secretary Geithner and Economic policy guru Larry Summers claim, but rather acts of criminal fraud meant to manipulate the capital positions and earnings of financial companies around the world. "
"The significance of this for the US bailout of AIG is profound. If our surmise is correct, the position of Feb Chairman Ben Bernanke and Treasury Secretary Tim Geithner that the AIG credit default contracts are "valid legal contracts" is ridiculous and reveals a level of ignorance by the Fed and Treasury about the true goings on inside AIG and the reinsurance industry that is truly staggering."
http://us1.institutionalriskanalytic...ry.asp?tag=351