[legion]

Originally Posted by tabs

You mean like AIG.....

The rating don't mean shyte if the company is NOT RE-INSURING their policies...to lay off being crushed by claims from a big one. That is why AIG almost bit the big BK in 2008, they got greedy and did not re-insure their home insurance mortgage policies. When those mortgages started to default starting in 2007 AIG was on the hook to make em all good. Hoooo Haaaa.

That caused NY Govenator Patterson to beg FED Chair Bernake to save AIG...with a bail out.

It was more basic than that. They couldn't reinsure because they set aside no reserves. They thought credit default swaps were free money they'd hardly ever have to pay on.