Bloomberg has a most interesting story on how AIG got the latest bail out:
American International Group Inc. appealed for its fourth U.S. rescue by telling regulators the company’s collapse could cripple money-market funds, force European banks to raise capital, cause competing life insurers to fail and wipe out the taxpayers’ stake in the firm.
AIG needed immediate help from the Federal Reserve and Treasury to prevent a “catastrophic” collapse that would be worse for markets than the demise last year of Lehman Brothers Holdings Inc., according to a 21-page draft AIG presentation dated Feb. 26, labeled as “strictly confidential” and circulated among federal and state regulators.
What's interesting about this confidential presentation is the numbers don't add up to the amount of taxpayer money given. In other words, AIG is stressing global economic collapse yet their projected numbers of collapse, at least by this Bloomberg report, do not come anywhere near what the United States or other governments have already doled out or even the latest $30 billion to AIG.
Are the banks using fear at this point to keep the great CDS Ponzi scheme going?
They Are Very Desperate!
They are fighting for their survival. At this point the remaining shareholders or interest holders (stock options) are the executives. Yes, they are using fear. There were early reports that they may be cutting policy premiums to dangerous levels to gain market share or new policies.
This quasi-nationalization state is dangerous. The remaining 20% private ownership needs to be wiped out so that the unwinding process can begin.
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