Vie de Malchance

From Marla Singer and Geoffrey Batt at Zero Hedge in November:

If the European banks that bought swap protection from AIG are still relying on this protection to meet their capital requirements, and AIG might be unable to make good on the agreements, are these banks actually out of Basel I compliance as we type this?

Currently:

When [...]

From the NYT on yesterday’s annual meeting:

Edward M. Liddy, listened sympathetically as shareholders expressed dismay about their losses and complained that they had never been able to vote on the terms of the bailout, which wiped out the value of their holdings. He said he was sorry, and agreed that A.I.G. might be worth more [...]

From the AP:

As of March 31, AIG had about $192.6 billion outstanding of the swaps, which were primarily written for European financial institutions. Continued declines in the value of the contracts could have a “material adverse effect” on the insurer’s financial results, according to the filing submitted late Monday to the Securities and Exchange Commission.

From [...]

From Zachary Roth at TPM Muckraker:

They’re caught between a rock and a hard place, because if Liddy’s testimony was accurate — and there’s a slew of other evidence suggesting it was — then several senior AIG execs, including not just Cassano but also then-CEO Martin Sullivan, appear to have given flawed information to investors at [...]

Hat tip to commenter RBM for AIG‘s Liddy testifying today before Congress.

Here’s the C-SPAN video.

Dennis Kucinich comes up at 55:00 and tears Liddy a new one. He indicates CDS counterparties in Europe were paid 100% contract value while pension funds in Ohio remain unsettled.

From Wikipedia:

Liddy owns 27,129 shares in Goldman Sachs, currently [...]