AIG’s credit default swaps brought down the company, and has helped bring not only the American – but the world – economy to its knees.
Yet these criminals are now refusing to join a group of 2,000 other companies in voluntarily agreeing to a little bit of self-regulation. As I have previously written, self-regulation does not go nearly far enough.
Indeed, the fact that AIG – which is now owned by the U.S. and foreign governments – is not participating in the psuedo change of self-regulation means that the the governments are telling AIG it doesn’t have to participate. Governments own AIG (and keep throwing money at it), so they have the power to control AIG.
In other words, Bernanke, Geithner, Summers and the gang are telling AIG that its CDS trades won’t be subject to government regulation or self-regulation. In essence, they are telling AIG to keep doing the same thing which brought down the economy.