Congressional Committee on Financial Services: AIG Paid Full Amount to Foreign CDS Counterparties, But Demanded 70% Haircut of U.S. Counterparties

In a stunning development, Representatives Frank and Bachus are alleging that AIG might have paid the full amount of credit default swap contracts to foreign counterparties, but demanded that U.S. counterparties take a haircut of up to 70%:
AIG Payments http://d.scribd.com/ScribdViewer.swf?document_id=13867510&access_key=key-2oozyacrd9xe13z3ad2f&page=1&version=1&viewMode=

I’m glad that haircuts were given. But if only American companies are taking haircuts – and not foreign companies – that is blatantly unfair, since the money came from American taxpayers.

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