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celticlord2112 -> Financial Crisis: So much for tirades against American greed (11/30/2008 5:31:56 PM)
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Financial Crisis: So much for tirades against American greed
First, my thanks to Lorr47 for pointing out the nakedcapitalism.com blog entry that led me to this October 5 article from the Telegraph.
What caught my eye was this paragraph:
quote:
We now know that it was French finance minister Christine Lagarde who begged Mr Paulson to save the US insurer AIG last week. AIG had written $300 billion in credit protection for European banks, admitting that it was for "regulatory capital relief rather than risk mitigation". In other words, it was underpinning a disguised extension of credit leverage. Its collapse would have set off a lending crunch across Europe as banking capital sank below water level.
So are we--meaning the U.S. Treasury and taxpayers--really bailing out?
Will the European central banks return the favor and extend some lines of credit to the U.S. Big Three automakers to assist in them navigating a Chapter 11 bankruptcy and radical reorganization?
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