THE GREAT CASSANO AND HIS MAGIC TRICKS

Reader comment on: Cassano Before the FCIC

Submitted by bob lenzner (United States), Jun 30, 2010 17:14

ALL PRETTY MUCH LIES. According to AIG briefing papers CDO position doubled after 2005. CDS book went from $240 billion to over $400 billion(peak was over $500 billion) No capital. Not a dollar of hedging. Astronomic leverage. Underlying mortgages reduced in value. With credit downgrading had to post additional capital. senior mgt AIG had no idea what cassano up to. THE LEVERAGE WAS UNSUPPORTABLE IN MELTDOWN> H OW DOES CASSANO KNOW VALUE PAPER> NO ONE DOES>

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The Future of Capitalism replies:

thethe claim seemed to be at he hearing was this was a non