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View Diary: Sen. Elizabeth Warren gives thumbs down to AIG's possible suing of taxpayers for bailing it out (125 comments)

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  •  The gov't hands are not clean here (4+ / 0-)

    Wasn't AIG about to deny payout or at least give a 40% haircut on some swaps due to misrepresentation of the underlying deals, the value, the risk, and the collusion with the ratings agencies?  The fed moves in and orders AIG to payout 100 cents on the dolllar.
    The gov't will not want discovery and trial on this deal, although it would be enlightening for the rest of us.

    These capitalists generally act harmoniously and in concert to fleece the people, and now that they have got into a quarrel with themselves, we are called upon to appropriate the people's money to settle the quarrel. Abraham Lincoln

    by Nailbanger on Tue Jan 08, 2013 at 02:33:16 PM PST

    [ Parent ]

    •  One criticism of the AIG bailout was that it was (7+ / 0-)

      really a bail-out of Goldman-Sachs & other Wall St biggies who were on the other side of all the CDSwaps AIG had sold.  Although I think some bailout of AIG made sense given its size, it could've been structured so that GS et al. bore some of the cost since they were the ones who had made the bad bets by having AIG as a counterparty in a type of deal that they knew AIG really wasn't expert at.   Both GS et al. & AIG were being insanely reckless with these CDSWs, but only the AIG shareholders to some degree and the US taxpayer ended up with the losses.  

      Government of the what, for the what, and by the what?  

      P.S.  I've read a ton of books on the crash, but, if you haven't read it yet, "The Big Short" still wins by many lengths the race for best combination of entertainment & informativeness.  

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