Thursday, 01 October 2009 01:00

And the next AIG is....

As many of my subscribers know, I have caught many companies on the short side as they imploded. One company that I did not get was American International Group. The reason it escaped me? I was too close to it. I have met Frank Tizzio (then president), Maurice Greenburg (then CEO and Chairman), and a several of their upper management to collaborate on deals, and was impressed with the way they ran their shop. Because of this, I didn't apply the same critical, skeptical eye that I used with the other prospects. Alas, because of such, I overlooked the inevitable. Well, I have learned my lesson. The lesson learned from AIG was not wasted on me, but does seem to have been wasted on many others. With this thought in mind, let's review the net, unhedged swap exposure of a few of our analysis subjects. I think a few subscribers may have their eyebrows raised. Some things are actually hiding in plain sight. See BAC Swap exposure_011009 Swap exposure_011009 2009-10-01 10:44:45 1.02 Mb.

For the sake of nostalgia, here is an old post of the same company's ABS inventory: BAC ABS Inventory ABS Inventory 2008-02-25 06:48:09 0 bytes

I will be releasing similar analysis of other banks and insurers over the next day or two.

Last modified on Thursday, 01 October 2009 01:00

2 comments

  • Comment Link Reggie Middleton Friday, 02 October 2009 00:14 posted by Reggie Middleton

    Ken Lewis is leaving because he has political shark bait sewn to his ass and he has been dropped in shark infested waters with the NY AG who will probably be gunning for governor, and the chairman of one of the most powerful congressional financial oversight committees in this country swimming around in the shark tank.

    That chum smells that much sweeter considering he was caught in a bold faced lie and is apparently guilty of securities fraud.

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  • Comment Link NDbadger Thursday, 01 October 2009 21:58 posted by NDbadger

    Do you think Ken Lewis is wanting to leave because he knows the bank is going to implode?

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