AIG.... More stuff..

[Masshog]

Meant to post this here in Finance, but accidentally posted it in politics.   

Interesting story starting to circulate around the street.  Supposedly AIG is unwinding its derivatives positions post haste.  But, rather than unwinding them a few at a time, and accurately valuing them, they are unwinding huge baskets/bundles for one price and paying pretty much whatever the bank on the other side of the trade asks.  Word is (and we all know how inaccurate the WORD can be) the banks involved (almost all of them) are saying that these are their most profitable trades ever, adding billions to their bottom line for the first quarter.  The conjecture is that this is done with the complicity of the US Govt (either that or they are criminal in their oversight of the process) as a way to simply transfer more of your tax dollars to the banks.  Who knows how true, but I saw similar reports from two places yesterday (who may have used the same source), but it certainly has the ring of truth to it.
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