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AIG has released it's CDS counterparties. Will it spook the markets?

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originalpckelly Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-15-09 05:20 PM
Original message
AIG has released it's CDS counterparties. Will it spook the markets?
Edited on Sun Mar-15-09 05:26 PM by originalpckelly
http://dealbook.blogs.nytimes.com/2009/03/15/aig-discloses-counterparties-who-received-224-billion/?hp

We'll have to see what happens in 1 hour 40 minutes from now when the Asian markets open. I wonder if this will trigger another sell off. It might spook the market to finally see a list of all the companies that had CDSes with AIG.

By the way Barclays, which bought out Lehman Bros. was an AIG counterparty.

UPDATE:
Here is actual PDF, link from DUer happynewyear:
http://www.aig.com/aigweb/internet/en/files/CounterpartyAttachments031509_tcm385-153015.pdf
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happynewyear Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-15-09 05:25 PM
Response to Original message
1. link here to those involved (.pdf file) thanks
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originalpckelly Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-15-09 05:26 PM
Response to Reply #1
2. Thanks, I edited my post to include the link!
:P
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leftstreet Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-15-09 05:27 PM
Response to Original message
3. Germany, France, Britain. Welcome to Legalized Global Gambling!
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originalpckelly Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-15-09 05:29 PM
Response to Reply #3
4. I think we can safely say we're all fucked.
Now we know why they wanted AIG to stay afloat.
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creeksneakers2 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-15-09 05:31 PM
Response to Original message
5. Isn't knowing better than not knowing?
Although what would really help would be to know what AIG has outstanding. Its beginning to look like they swallowed most of the bad debt themselves and others are less threatened than feared.
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aquart Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-15-09 05:55 PM
Response to Original message
6. This is the reply that interested me:
#

First, let’s start with the fact that these numbers are in billions where most of us are dealing with rounding up to millions or even hundreds of millions as being our largest common rounding. But these numbers are in billions: one billion equals 1,000 times $1,000,000, so the mental shortcuts/habits cause distortion at once, and this habit of rounding to millions drives most readers’ interpretations and views and distorts what has gone on here.

Second, while we are given data, it is not necessarily useful information, e.g. were there any groups numbers or subsets of group numbers that could be linked together because of the ultimate beneficiary, where the stated/listed name is not the ultimate beneficiary (remember again we are dealing in billions not millions, so subsets could easily be hundreds of millions). The same ultimate beneficiary could be buried in 3-4 different banks (e.g. $300-400 million in each of three would yield $1 billion to someone who is “hidden” behind the list or who is listed but who really has a “cut” in the allocations of others on the list).

By the way I do have information that is not stated here which proves this is true, but better I not state it right now but instead later after my statements are denied by AIG and/or the listed beneficiaries: then I will call them out for their lies.

Third, AIG has not therefore provided us with accuracy and completeness but with “transparency” meaning enough data to keep the public at bay and semi-informed but not enough to provide “useful, accurate and complete information in context with suitable and honest explainatory narrative… and to tell us really where the billions went and for what.

-snip-

— Posted by Hank
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