Skip to content

The Story of the Fall of AIG

March 25, 2009

The introduction to a draft article on the regulation of Credit Default Swaps has an excellent explanation for what went wrong at AIG. It has everything to do with the mispricing of risk associated with mortgage backed securities and little to do with Credit Default Swaps themselves.

HT: Marginal Revolution

Advertisements

From → Uncategorized

Leave a Comment

Leave a Reply

Please log in using one of these methods to post your comment:

Gravatar
WordPress.com Logo

You are commenting using your WordPress.com account. ( Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. ( Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. ( Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. ( Log Out /  Change )

Cancel

Connecting to %s

«
»
%d bloggers like this: