Ticking Financial Nukes (OTC Derivatives) - The Market Ticker

Ticking Financial Nukes (OTC Derivatives) - The Market Ticker: "As with the phony reinsurance contracts that AIG and other insurers wrote for decades, when AIG wrote hundreds of billions of dollars in CDS contracts, neither AIG nor the counterparties believed that the CDS would ever be paid. Indeed, one source with personal knowledge of the matter suggests that there may be emails and actual side letters between AIG and its counterparties that could prove conclusively that AIG never intended to pay out on any of its CDS contracts."

(Via .)