US Taxpayers About To Be Saddled With Another European Bailout Courtesy Of AIG

[stockholmer]

http://www.zerohedge.com/article/us-taxpayers-about-be-saddled-another-european-bailout-courtesy-aig

Just when one thought every imaginable taxpayer bailout scheme had been seen, experienced and in many cases, forgotten, here comes AIG once again. The specifics come from Deutsche Bank's Joshua Shanker initiation of coverage report on AIG (naturally with a Buy rating, $34.00 target price), where within the fine print he notes: "the company believes there may be bargains available from buying RMBS securities from European banks seeking better positioning under Basel III requirements." Prudently, he adds: "We note that increased yield, in this regard, also carries with it increased risk." Translated this means that AIG is about to do for European banks what the ECB so far has been unwilling and/or unable: namely to transfer the risk associated with European banks' massive ongoing exposure to the continuously collapsing US housing market back to the US taxpayer, in the form of AIG, which was bailed out once, and which will certainly be bailed out again, when the time comes.

As a reminder, AIG was rejected by the New York Fed in its attempt to repurchase the very same loans that were part of the package that sent the company into bankruptcy, only to be rescued in the last minute by Hank Paulson, who flipped on his decision to kill Lehman (thus making Goldman the Wall Street fixed income OTC monopolist) by providing hundreds of billions in order to unwind Joe Cassano's massive wrong way bet.

As for how much RMBS will AIG soon transfer from European taxpayer "backstopping" and back to US? Roughly $21 billion worth.

From the relevant section in the DB report................

snip

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As a European, I guess I should say thanks, but I will not benefit from this plunder of your money, we all suffer under this global financial terrorism.


:thumbsdown:

[cali]

1. god, I hate that fucking corporation.l

[midnight]

2. K&R The powers that be have us completely distracted so that

we don't react... We're to busy losing sleep over the Big Lie. We are so outraged that someone can be so stupid. If we stuck a big dick on AIG maybe we could get this front in center on the news.... Ten interviews back to back about When, where, why and how the American Tax payer is responsible for the banking practices of foreign bankers?

[Scuba]

3. Good thing the Republicans are holding up the Elizabeth Warren nomination....

...we'd hate to have a regulatory agency preventing this kind of stuff.








sarcasm thingy

[Angry Dragon]

4. No more bailouts

if they screw up again jail and loss of personal monies......
seeing how the courts have determined they are people