Now raising intellectual capital

from Rolfe Winkler:

“There were no discussions on AIG”

I'm sorry I missed this CNBC interview last week with Robert Wolf, chief of UBS Investment Bank in the U.S.  There's a remarkably eye-opening sound bite.   (hat tip M. Mayer)

...there were no discussions on AIG during that three day period [the weekend Lehman failed].

Wait, really?  Does this mean the Fed had no idea AIG was about to collapse when it was working to resolve Lehman?  Two days later it threw $85 billion at them with completely insufficient security, a package that later expanded to $150 billion.

Clearly there needs to be some mechanism to receive the assets of failed systemically-important companies.  FDIC has its hands full with insured depository institutions.  It has no mandate, much less the capability to handle a behemoth like AIG.