This page has been archived and commenting is disabled.

AIG CDS Book To Be Backstopped By US

Tyler Durden's picture




 

But, but...this was all contained the last time the company lied about its current state... Looks like US Taxpayer Capital LLC will need some CDS salespeople/traders as it is the unwitting recipient of a $300 billion CDS book.

Feb. 26 (Bloomberg) -- American International Group Inc. may get a backstop from the U.S. to protect against further losses on credit-default swaps, according to a person familiar with the matter.

The federal guarantees may be included in New York-based AIG’s restructured bailout, which the company plans to disclose next week with fourth-quarter results, according to the person, who declined to be identified because the talks are private.

The insurer provided protection on more than $300 billion of assets through credit derivatives as of Sept. 30. Credit- default swaps pay the buyer face value on their debt holdings in exchange for the underlying securities if the borrower fails to meet its obligations.

Michelle Smith, a spokesman for the Federal Reserve, declined to comment as did the Treasury’s Isaac Baker and Joseph Norton of AIG.

 

- advertisements -

Do NOT follow this link or you will be banned from the site!