AIG Insuring Itself from Itself?
original article written by Net Advisor™
AIG announced that they looking to get back into the mortgage business by purchasing mortgages they already insure? (Source: Financial Times PDF.)
So effectively, if one defaults on the mortgage, AIG insurance division will pay AIG mortgage division for the loss? Doesn’t this mean AIG still has a loss? Did we tell you the government still owns the majority of AIG? (Source: NY Times PDF)
Watch the Business media laugh about this odd business decision.
Air date: 04.02.2012
AIG was the costliest bailout ever at $182 Billion, if you don’t count the potential $5 Trillion risk for Fannie Mae and Freddie Mac (Source: CNN).
video credit, courtesy CNBC
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