Wednesday, April 1, 2009
Congressional Committee on Financial Services: AIG Paid Full Amount to Foreign CDS Counterparties, But Demanded 70% Haircut of U.S. Counterparties
In a stunning development, Representatives Frank and Bachus are alleging that AIG might have paid the full amount of credit default swap contracts to foreign counterparties, but demanded that U.S. counterparties take a haircut of up to 70%:
I'm glad that haircuts were given. But if only American companies are taking haircuts - and not foreign companies - that is blatantly unfair, since the money came from American taxpayers.