Comments on: Corporate Anorexia http://alephblog.com/2009/04/03/corporate-anorexia/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Sun, 12 Feb 2012 18:05:33 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: David Merkelhttp://alephblog.com/2009/04/03/corporate-anorexia/comment-page-1/#comment-21386 David Merkel Fri, 03 Apr 2009 16:30:38 +0000 http://alephblog.com/?p=1583#comment-21386 Also, if there were side letters on the CDS, that would only benefit AIG, and we are not hearing anything about that publicly... the government would want to collect on the side agreements, subject to not pushing a lot of other things under. Also, if there were side letters on the CDS, that would only benefit AIG, and we are not hearing anything about that publicly… the government would want to collect on the side agreements, subject to not pushing a lot of other things under.

]]> By: David Merkelhttp://alephblog.com/2009/04/03/corporate-anorexia/comment-page-1/#comment-21385 David Merkel Fri, 03 Apr 2009 16:28:25 +0000 http://alephblog.com/?p=1583#comment-21385 This is an issue, but if side letters are still going in any big way, it is news to me. AIG does have reinsurance issues though, and I am doing a little digging there. This is an issue, but if side letters are still going in any big way, it is news to me. AIG does have reinsurance issues though, and I am doing a little digging there.

]]> By: arturohttp://alephblog.com/2009/04/03/corporate-anorexia/comment-page-1/#comment-21384 arturo Fri, 03 Apr 2009 13:38:14 +0000 http://alephblog.com/?p=1583#comment-21384 Dear David- I ran across an article in Institutional Risk Analytics which hypothesizes that many of the CDS' issued by AIG were accounting 'window dressing' for the purchaser, offset by private 'side letters.' The author says that this is a well-known wheeze in reinsurance, for which AIG has been repeatedly fined. AIG's innovation, he speculates, was to transplant the technique into credit insurance. http://us1.institutionalriskanalytics.com/pub/IRAMain.asp I don't really have the background to form an intelligent opinion on this hypothesis. I would be interested in your views. I've been mystified by AIG's gargantuan taste for CDS risk. I also recall the suspicious willingness of various prominent investment banks to help Enron construct fraudulent SPEs. Dear David-

I ran across an article in Institutional Risk Analytics which hypothesizes that many of the CDS’ issued by AIG were accounting ‘window dressing’ for the purchaser, offset by private ‘side letters.’

The author says that this is a well-known wheeze in reinsurance, for which AIG has been repeatedly fined. AIG’s innovation, he speculates, was to transplant the technique into credit insurance.

http://us1.institutionalriskanalytics.com/pub/IRAMain.asp

I don’t really have the background to form an intelligent opinion on this hypothesis. I would be interested in your views.

I’ve been mystified by AIG’s gargantuan taste for CDS risk. I also recall the suspicious willingness of various prominent investment banks to help Enron construct fraudulent SPEs.

]]> By: vbrief.comhttp://alephblog.com/2009/04/03/corporate-anorexia/comment-page-1/#comment-21382 vbrief.com Fri, 03 Apr 2009 12:07:28 +0000 http://alephblog.com/?p=1583#comment-21382 <strong>Corporate Anorexia...</strong> The boom-bust cycle cannot be repealed.... Corporate Anorexia…

The boom-bust cycle cannot be repealed….

]]> By: Anonymoushttp://alephblog.com/2009/04/03/corporate-anorexia/comment-page-1/#comment-21381 Anonymous Fri, 03 Apr 2009 10:17:25 +0000 http://alephblog.com/?p=1583#comment-21381 <strong>Mom Blogs - Blogs for Moms...</strong> ... Mom Blogs – Blogs for Moms…

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