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Who's Who on AIG's List of Counterparties
According to its filing, AIG has directly posted over $22 billion in collateral on these deals, and Maiden Lane III, an entity set up by the Treasury, has posted an additional $27 billion. Of that, $11 billion has gone to France's Société Générale, $5.4 billion to Deutsche Bank, and $8.1 billion to Goldman Sachs. These deals are vestiges of the financial ingenuity of AIG's Financial Products Group. Some $165 million in bonus payments to executives from this division has drawn outrage from the White House to Congress and New York State Attorney General Andrew Cuomo since they were revealed on Mar. 14.The second big block of AIG payouts stems from a business its insurance units did in lending out securities in which they had invested to customers for fees. When the borrowers returned those securities and demanded back the collateral that they'd put up, it cost AIG another $43.7 billion. Of that, England's Barclays got $7 billion, Deutsche Bank $6.4 billion, BNP Paribas $4.9 billion, and Goldman $4.8 billion. It's worth noting, however, that these names would arise in any large financial institutions' dealings, because they are the major players in these markets. Posted by: ed 2009-03-17 |
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