Now the American taxpayer is going to go on the hook for another $300 Billion (notional).
This is getting old.
From Bloomberg via Calculated Risk:
AIG Rescue May Include Credit-Default Swap BackstopAmerican International Group Inc. may get a backstop from the U.S. to protect against further losses on credit-default swaps, according to a person familiar with the matter.There you have it.
The federal guarantees may be included in New York-based AIG’s restructured bailout ...