Making counterparties on the company's derivative deals take a haircut (as would happen in a failure) would not have to mean leaving policyholders without insurance (the conventional insurance divisions are solvent and under no obligation to the derivative counterparties). Lucien Bebchuk and Larry Ribstein, who disagree on many other matters, seem to be in accord on this one.
Letting AIG fail
Related Entries:
- AIG, Government Rescues, and Billion Dollar Copiers
- Maybe that AIG case isn't so crazy?
- AIG's Attitude of Gratitude
- "Attorney fee-only" bankruptcy plans
- Romney is right about the auto bailout
- Ohio union vote
- What's in the water in Wisconsin?
- Around the web, June 13
- Around the web, April 22
- Around the web, February 13
- Ransom v. FIA Card Services
- That auto bailout
- Around the web, July 26
- Chrysler bailout and bankruptcy law
- Chrysler and Sales Free and Clear
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Rafael Mangual Project Manager, Legal Policy rmangual@manhattan-institute.org |
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Communications Manhattan Institute communications@manhattan-institute.org |