Oct 29, 2009 (SmarTrend(R) News Watch via COMTEX News Network) -- 10/29/2009 - American International Group (NYSE:AIG) is seeing billions of dollars in collateral paid to banks for credit-default swaps flow back as a result of the financial rebound, according to a Wall Street Journal report. It is unclear how much the company is reaping from the returned collateral, but public filings suggest that more than $3 billion was returned in the second quarter, and people familiar with the matter told WSJ that $1 billion has come just from Goldman Sachs. The U.S. government closed out several of the sour CDS trades with its bailout of AIG, including some that rebounded in value, both saving the company and potentially costing it billions.
Write to Chip Brian at cbrian@tradethetrend.com
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