Clinton and AIG

[trrenter_IHB]

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.

AIG

 

[no_vaseline_IHB]

 

[bltserv_IHB]

Oh My God.

I knew it was all Billy`s fault.

 

[usctrojanman29_IHB]

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.

AIG

So now we know why AIG got saved and Lehman didn't....if AIG was allowed to bite the dust so would other financial firms, especially GOLDMAN SACHS.

 

[awgee_IHB]

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.

AIG

So now we know why AIG got saved and Lehman didn't....if AIG was allowed to bite the dust so would other financial firms, especially GOLDMAN SACHS.

Have I not been screaming this for the last two years?

And Robert Rubin, Bill Clinton, Alan Greenspan, and whomever was the SEC chairman at the time are responsible for the ending of Glass-Steagall and the uptick rule. There is not enough difference between the Dems and Repubs to be a difference.

 

[Anonymous_IHB]

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.

AIG

So now we know why AIG got saved and Lehman didn't....if AIG was allowed to bite the dust so would other financial firms, especially GOLDMAN SACHS.

Have I not been screaming this for the last two years?

And Robert Rubin, Bill Clinton, Alan Greenspan, and whomever was the SEC chairman at the time are responsible for the ending of Glass-Steagall and the uptick rule. There is not enough difference between the Dems and Repubs to be a difference.

That is true. Only one with clean hands in the mess seems to be Paul Volkner who recommended against ending the financial regulations.