They've got muck; we've got rakes. TPM Muckraker
Our source says it "is becoming assumed throughout the industry that AIG FP finding new ways to roll over" -- which is to say, using bailout money to offer counterparties on its trades generous terms in closing out its contracts with the massive issuer of credit default swaps and other exotic derivatives options. While he did not want to name names or go into detail about any specific transactions, he said we should watch for signs of AIG FP employees being rewarded for their generosity with jobs working for their old counterparties under eyebrow-raising terms -- "like if you have a noncompete," the source explained, "and you go to a competing firm doing something far below you for an extreme salary."
An exodus of employees at AIG Financial Products has already threatened to cost taxpayers hundreds of billions more dollars. And to think some executives might be hastening their departure from the zombie insurer by squandering billions of taxpayer dollars is...while perhaps unsurprising, still a little nuts.
"The staggering thing," our source says, "is the size of these deals."