re: #604 phoenixgirl

does anyone know why aig would send money to european banks? is it because they were paying on a valid claim to banks they insured?

European banks insured their investments (think real estate) with AIG. So when these investments default, AIG has to pay the insurance claim.

This whole problem was caused by companies like AIG offering insurance for risky investments at too low a cost. If the insurance had been priced properly, we wouldn’t be in this mess.