Skip to main content

AIG bailout provides derivatives blueprint

Okay, at this point I think everyone is probably sick to death of hearing about AIG, and I wasn't actually planning to add anything to our recent AIG-related posts.

Nevertheless, the Financial Times has a very worthwhile article today about the effects that the US government's bailout of AIG will have on the derivatives market.

And since we're all about trends here at Finance Trends Matter, it'd be careless of us to omit such important news. So let's get into it.

Excerpt from, "Backing for AIG provides derivatives blueprint":

"The US government's decision to pay out all the money owed by AIG to its financial derivatives counterparties is widely regarded as a "blueprint" for the level of government support that can be expected in the derivatives industry.

Indeed, the list of counterparties shows that many banks benefited from the government's decision to ensure AIG's obligations were met, including some of the biggest dealers in the derivatives industry, such as Deutsche Bank, Goldman Sachs and Société Générale...

...The government's support of the derivatives industry - in effect using taxpayer funds to prevent huge losses at some of the biggest banks active in the derivatives market - is a key reason why efforts have been able to continue to reduce the risk of many of the privately traded, over-the-counter derivatives sectors."

Check out the full piece at the link above, and see our related articles and posts below for more on AIG's payments to its counterparties.

Related articles and posts:

1. AIG funnels taxpayer cash to counterparties - Finance Trends.

2. AIG: $105 billion to counterparties - Big Picture.

Popular posts from this blog

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL!  Please bookmark our new web address at Financetrendsletter.com Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner .   Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead! As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter . You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter).  Stay up to date with our real-time insights and updates on Twitter .

Moneyball: How the Red Sox Win Championships

Welcome, readers . T o get the first look at brand new posts (like the following piece) and to receive our exclusive email list updates, please subscribe to the Finance Trends Newsletter .   The Boston Red Sox won their fourth World Series title of t he 21st century this we ek. Having won their first Se ries in 86 years back in 200 4, the last decade-plus has marked a very strong return to form for one of baseball's oldest big league clubs. So how did they do it? Quick background: in late 2002, team own er and hedge fund manager, John W. Henry (with his partners ) bought the Boston Red Sox and its historic Fenway Park for a reported sum of $ 695 million. Henry and Co. quickly set out to find their ideal General Manager (GM) to help turn around their newly acquired, ailing ship. This brings us to one of my fav orite scenes from the 2011 film , Moneyball , in which John W. Henry (played by Ar liss Howard) attempts to woo Oakland A's GM Billy Beane (Brad Pi

William O'Neil Interview: How to Buy Winning Stocks

Investor's B usiness Daily founder and veteran stock trader, William O'Neil share d his trading methods and insights on buying winning stocks in an in-depth IBD radio interview. Here are some highlights from William O'Neil's interview with IBD: William O'Neil's interest in the stock market began when he started working as a young adult.  "I say many times that I didn't get that much out of college. I didn't have much interest in the stock market until I graduated from college. When I got married, I had to look out into the future and get more serious. The investment world had some appeal and that's when I started studying it. I became a stock broker after I got out of the Air Force."    He moved to Los Angeles and started work in a stock broker's office with twenty other guys. When their phone leads from ads didn't pan out, O'Neil would take the leads and drive down to visit the prospective customers in person.