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To: Real Man who wrote (400390)	1/31/2010 9:21:50 AM
From: carranza2	4 Recommendations Respond to of 436258

Certainly a way to look at it. NY State Insurance Dep't tried at one time to regulate CDS as insurance products. I do a lot of legal stuff involving insurance companies; I can tell you without hesitation that if CDS were indeed considered insurance, the McCarran Act would allow them to be regulated by state insurance commissioners. If they were looked at under the regulatory prism that insurance policies are looked at, the ones which are pure bets would be declared illegal for failure of the holder to have an 'insurable interest' in the insured property. You cannot have insurance on property on which your interest is non-existent; it is the text book example of 'moral risk' which is originally an insurance term, by the way. The moral risk inherent in the AIG transactions could be cut with a knife. The government acted in an appalling manner in the AIG fiasco. If I were GS or Societe Generale, I'd consider returning some of the moolah. But that is why I am not a gazillionaire.