Wednesday, December 10, 2008
AIG Responds to Wall Street Journal Story
American International Group, Inc. (AIG) has issued the following statement regarding an article that appeared today in The Wall Street Journal:
"A story in today's Wall Street Journal incorrectly reports that AIG has a previously undisclosed obligation to counterparties of about $10 billion. The Journal's story relates to AIG Financial Products' multi-sector credit default swap portfolio. Included within that $71.6 billion portfolio (notional amount as of September 30) is approximately $9.8 billion of swaps that were sold as credit protection on "synthetic" securities. The swaps on these synthetic securities are also referred to as "cash settlement" or "Pay As You Go" (PAUG) swaps because they are settled in cash as and when losses are taken.
AIG Responds to Wall Street Journal Story
Source: MarketWatch
"A story in today's Wall Street Journal incorrectly reports that AIG has a previously undisclosed obligation to counterparties of about $10 billion. The Journal's story relates to AIG Financial Products' multi-sector credit default swap portfolio. Included within that $71.6 billion portfolio (notional amount as of September 30) is approximately $9.8 billion of swaps that were sold as credit protection on "synthetic" securities. The swaps on these synthetic securities are also referred to as "cash settlement" or "Pay As You Go" (PAUG) swaps because they are settled in cash as and when losses are taken.
AIG Responds to Wall Street Journal Story
Source: MarketWatch
Permalink posted by armandn @ 10:50 AM 
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