Tuesday, October 27, 2009
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.”
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.