ES -- DX/CL -- isee -- cboe put/call -- specialist/public short ratio -- trinq -- trin -- aaii bull ratio -- abx -- cmbx -- cdx -- vxo p&f -- SPX volatility curve -- VIX:VXO skew -- commodity screen -- cot -- conference board

Tuesday, March 03, 2009

 

where is the AIG money going?


not new news but it's finally in the new york times -- to post collateral on credit default swaps sold by AIG to investment banks like goldman sachs and commerical banks like UBS who were executing a massive regulatory arbitrage in order to hold virtually no capital. and yes, that is definitely a bailout for foreign counterparties. bottom line will ultimately end up being north of $500bn, i would suspect, once $400bn in CDS are combined with massive failures in securitization holdings.

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Why isn't "regulatory arbitrage" fraud? The tax authorities call evasion of the tax law fraud.

 
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