Monday, December 21, 2009

Is the Treasury Covering Up Part of Goldman Sachs' Role in the AIG Crisis?

Find out what Janet Tavakoli of Tavakoli Structured Finance thinks in this FOX business clip.

In a private email Janet notes:
The coming weeks may bring more public questions about the AIG CDS settlements.

Calyon, a French bank that bought protection from A.I.G. (including on some Goldman originated CDOs) settled a similar $1.875 billion financial guarantee with FGIC UK for only ten cents on the dollar. This wasn’t exactly comparable, because of the March 2008 lawsuit, but it was on a subprime related ABS portfolio. It does highlight that French banks will settle, however, when the motivation is right.

These are much more comparable: Ambac settled $5 billion of similar (to AIGs) CDSs for ten cents on the dollar, and MBIA has also made deeply discounted settlements on similar CDSs.

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