AIG acts to avoid default risk – FT.com
April 29 2009
By Francesco Guerrera in New YorkAIG has moved to stave off the risk of default on $234bn of derivatives by persuading a senior executive at its
troubled financial products division to rescind his resignation and remain with the stricken insurer to unwind the complex trades.
AIG insiders said James Shephard, the deputy chief executive of Paris-based Banque AIG, had decided to stay on as the unit’s chief less than a month after resigning in the midst of the political furore over the insurer’s bonuses.
Mr Shephard’s U-turn, which could be announced on Wednesday, is likely to deter several European banks that bought the derivatives from taking legal action to force AIG to repay them, according to people familiar with the situation.
The move should also avoid a showdown between US regulators, which control AIG after bailing it out, and their French counterparts.
read the article here… FT.com / Companies / Financial Services – AIG acts to avoid default risk.
Think $234bn Derivatives is big how about 1/2 Quadrillion … “$531 TRILLION Dollar Derivative TSUNAMI Can NOT Be Stopped”
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