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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (466570)3/26/2009 2:13:19 PM
From: Alighieri  Read Replies (1) | Respond to of 1575980
 
It is. Apparently the CDS's that at least AIG wrote have a clause that triggers them if AIG defaults on any of them. So unless someone has the power to nullify that part of those contracts, all $1.5 trillion becomes instantly due.

This came out as part of the justification for paying the bonuses. Liddy made the claim that not paying the bonuses would trigger these clauses. Not sure how that was supposed to work, but...

Which may be again why Geithner wants to power to take over these institutions in case of extreme crisis. Then the government could potentially exercise powers the private sector does not have...you think?

Al



To: combjelly who wrote (466570)3/26/2009 3:16:54 PM
From: bentway  Respond to of 1575980
 
"Apparently the CDS's that at least AIG wrote have a clause that triggers them if AIG defaults on any of them."

With a bankrupt AIG, how would a creditor collect on ANY contract from AIG? They'd have to get in line and accept what they got from the judge.


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