A villain is now appointed.
Forbes has the dope.
The hidden risks always multiply...
Innovation? You make the call:
By AIG's own description, about $379 billion of the $527 billion in AIG's default swap portfolio "represents derivatives written for financial institutions, principally in Europe, for the purpose of providing them with regulatory capital relief rather than risk mitigation."
Regulatory capital relief? Ahhhh, the comedy!
[I didn't see anything about regulation of these contracts in the new Bill. One wonders if the Fed has sufficient authority ...]
