trrenter_IHB
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But strong opposition to the proposal from then-Fed Chairman Alan Greenspan and senior Clinton administration officials sank the idea. On Dec. 21, 2000, President Clinton signed into law the Commodity Futures Modernization Act, which further eased restrictions on derivatives like credit default swaps.
The new law cleared the way for an explosion in credit default swaps. In the first half of 2001, there were $632 billion in credit default swaps outstanding, according to the International Swaps and Derivatives Association. By the second half of 2007, that number was up 100-fold ? to more than $62 trillion. Now, as the government tries to unwind the mess at AIG, much of tax money pumped into AIG has quickly flowed out to dozens of ?counterparties? ? the companies, investment funds, municipalities and others who bought credit default swaps from the insurance giant.
<a href="http://www.msnbc.msn.com/id/29724816/">AIG </a>
The new law cleared the way for an explosion in credit default swaps. In the first half of 2001, there were $632 billion in credit default swaps outstanding, according to the International Swaps and Derivatives Association. By the second half of 2007, that number was up 100-fold ? to more than $62 trillion. Now, as the government tries to unwind the mess at AIG, much of tax money pumped into AIG has quickly flowed out to dozens of ?counterparties? ? the companies, investment funds, municipalities and others who bought credit default swaps from the insurance giant.
<a href="http://www.msnbc.msn.com/id/29724816/">AIG </a>