Is The Fed Facing Margin Calls From European Banks?

by Marla Singer and Geoffrey Batt

Buried in the depths of page 26 of the Office of the Special Inspector General for the Troubled Asset Relief Program’s (SIGTARP’s) November 17, 2009 report “Factors Affecting Efforts to Limit Payments to AIG Counterparties” hidden in footnotes 33 and 34 is something of a mystery. It might be the beginning of an interconnected financial chain involving Dubai, the Federal Reserve, AIG, Basel I, Eastern Europe and even Switzerland and which, even if it doesn’t worry you, probably should. Or it might be nothing at all.

http://www.zerohedge.com/article/fed-facing-margin-calls-european-banks

“Margin call gentlemen.” If this is correct, AIG and the Fed are likely screwed. How many European banks will the Fed have to prop up?

Related Posts:

• It’s difficult to have optimism when the U.S. is piling on insurmountable debt.
• Geithner’s Fed told AIG to hide “backdoor bailout”
• Bankers warned over risk taking
• Turbo Timmy (in the immortal words of Ricky Ricardo) may have some more ” ’splaining to do!”
• The fact that Goldman used taxpayer funds via the AIG bailout to cover their bets is a pretty good reason to call it a scandal.

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