AIG’s latest disclosure…

March 16, 2009

Over the weekend, it was hard to avoid the story about AIG (AIG) and its bonus payments. At least three people, none of whom are known for reading the business pages, asked me about it, over the weekend, which under the old rules in journalism, officially makes it a trend.

With anger surging, yesterday, AIG released a list (you can download it here) with all the companies that received some of the money that AIG received from the government. There’s a good synopsis by Bloomberg here.

Now, this morning, AIG is out with a new filing — well, actually an amended 8K — that includes other new details, that shows just how underwater some of these credit default swaps are. What’s really interesting is how some companies seem to have put up a lot of collateral and others put up very little. For example, Goldman Sachs (GS), which received $12.9 billion from AIG, had CDS’ with what the company describes as $13.9 billion of “notional value”, but only put up $8.4 billion in collateral. Societe Generale, another big beneficiary, had $16.4 billion in notional value, and $9.5 billion in collateral. A much smaller deal — but scarier number — has Dresdner Bank, which is now part of Commerzbank — with $398.4 million in CDS, but no collateral.

Now I’m not an expert on CDS, but do these numbers look kosher to those readers who are?

Today’s the deadline for the next round of companies to get their 10-Ks in, so there will be lots and lots of filings today. As I’ve noted for the past month, advertising revenues are down sharply. If you like footnoted.org, please consider making a donation to support the site. If readers are unable or unwilling to support the site voluntarily, I will have few choices, other than to put all of the content behind a wall.

Sorry, comments for this entry are closed at this time.