Tavakoli on AIG Swaps: “There’s No Way They Should Have Paid at Par. AIG Was Basically Bankrupt”

Derivatives expert Janet Tavakoli made the following comments by email about the Bloomberg article “New York Fed’s Secret Choice to Pay for Swaps Hits Taxpayers”:

“There’s no way they should have paid at par,” she says. “AIG was basically bankrupt.”

I agree.

By way of contrast, Tavakoli points out that:

Citigroup Inc. agreed last year to accept about 60 cents on the dollar from New York-based bond insurer Ambac Financial Group Inc. to retire protection on a $1.4 billion CDO.

Facebooktwittergoogle_plusredditpinterestlinkedinmail
This entry was posted in Uncategorized. Bookmark the permalink.