Friday, June 06, 2008

Who Will Hold The Bag?

A big question is which institutions the powers that be will bail out, and which will die, along with who doesn't get a seat when the music stops in the Big Shitpile Musical Chairs.

(Reuters) - The U.S. Securities and Exchange Commission is investigating whether American International Group Inc (NYSE:AIG - News) overstated the value of contracts linked to subprime mortgages, the Wall Street Journal said on Friday, citing people familiar with the matter.

The way AIG valued credit default swaps, including those backed by subprime mortgages, is at issue, the newspaper said.