Allegedly, AIG is getting its faced ripped off as it seeks to unwind its risk.
To be honest, AIG's economic motivation for these unwinds remains unclear (to me). The number of corporate downgrades has continued apace in 1Q09, so it is entirely possible that they are/were still losing money, despite everything. They may have, at last, decided to throw-in-the-towel at any price, or something... Qien sabe?
After the third restructuring of their rescue, I kinda figured that any "hits" would work through the income statements in 4Q08, especially for Goldman, who were alleged to be one very key counterparty-risk in all the Paulson-Blankfein conspiracy theories (and floor rumors during the week of AIG's first botched rescue attempt). Nothing obvious did come through (I thought).
Now, I'm not sure which books are unwinding, IF the above account has merit.
Vexing problem #59841:
You've just ripped the face of AIG with a massive trade that, not only books a profit at the time of the trade, but will likely be highly profitable to the firm over the upcoming year. Do you have a "right" to a massive bonus?
Friday, April 3, 2009
GAO Investigation?
