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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: stomper who wrote (25058)	2/4/2003 5:55:17 PM
From: stomper	Respond to of 57110

Bet this isn't far off the mark (from M2M on Stool): Here’s last night’s conversation in AIG’s Risk Management Department: “Who wrote that D & O policy on Bernie ‘O Canada’ Ebbers?” “We did, but it’s not our problem. We offloaded that skunk to MBIA, Inc.” “Call MBIA. Tell them to pay up, so we can pay the policyholders.” “We already did. But they said they can’t pay until they get paid by Commerzbank, who underwrote that derivative contract brokered by Citigroup.” “But Commerzbank reports earnings tomorrow, and they are supposed to be a disaster.” “Commerzbank says no problem. They hedged their bet by purchasing some risk insurance from XL Capital” “But I heard that XL Capital may not pay, because they got some cash calls from Bermuda Capital Strategies, LLP, which is still tied up in Enron litigation because they claim that J.P. Morgan misled them about Mahonia and 147 other SPE’s.” “What about Citibank? They sold us this cockamamie hedging strategy. Can’t we sue them for payment?” “No, Citibank was just the intermediary.” “So what do we do, sit and wait for a payday from the Chain Letter, or go ahead and take a charge against earnings?” “We’d better take the hit now. I smell a rat. I have a feeling that a lot of these stupid Chain Letter contracts we signed are going to turn up to be no good.” The Paper Apocalyse.