Hedge Funds May Get AIG Cash

Wall Street Journal by Serrena NG | Mar. 18, 2009 (Special Report - Paid subscription required)
Some Bailout Money Is Set Aside to Pay Firms That Bet Housing Market Would Crater

In essence, while the U.S. government is busy trying to prop up the housing market -- by trying to limit foreclosures, among other things -- it is simultaneously putting up cash that could be used to pay off investors who bet housing prices would tumble and many mortgage holders would default.
It's unclear how much government money might eventually flow to hedge-fund investors. Overall, the government has committed up to $173.3 billion to bail out AIG. ... Full Story »

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4.0
 by Peter Barnett - Mar. 18, 2009

Investigative journalism that has along way to run before the full story is revealed (if ever).

The sleeping tiger isn't in SE Asia it's the electorate. Pity it took so long to respond to the prodding.

In a prepared testimony, Mr Liddy says the company “strayed from its core competencies in the insurance business”. Nowhere was this more evident than in “the creation of what grew to become an internal hedge fund, which then became substantially overexposed to market risk,” he adds.

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