> RoMunn wrote: AIG has a hedge fun. 'nuff said.
You're focusing on the organizational structures and titles and not the "products". CFMA, as crafted by banker Gramm, specifically said that products that banks offered would not be regulated as futures. There's your problem, or a big part of it. This is why the unregulated banking system was larger than the regulated one 3 months ago. It ain't about "banks" and "hedge funds". In fact it's exactly the opposite of that. Your thinking is perfectly backwards. It's about the products *anybody* could create, buy, offer, sell, trade. These derivatives have tied everyone together into an unholy web; don't matter what cha wanna call yourself. AIG fell because they sold insurance - swaps - on all kinds of anything including home loans. Like all insurance the insurance buyers paid a premium, but required the seller to post collateral. When people stopped paying their mortgages, the CDOs failed triggering swap fulfillment. When money started flying out the door AIG's credit when down triggering a $14 Billion collateral call which they couldn't make and they went bankrupt. But the insurance and the derivatives can be on anything from anything by anybody. And that's the mess. So your narrative is a big pile of crap. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:293297 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
