How’s that AIG unwind going?
Are AIG traders dumping their CDS positions at ridiculous prices in order to ingratiate themselves with potential future bosses? It seems not — in fact, it seems that they’re barely making a dent in AIG’s $1.5 trillion CDS portfolio at all, any more. Maybe that’s what happens when you stop paying retention bonuses: your traders stop losing you billions of dollars. Yet another case where going to the beach and doing nothing is vastly more profitable than working very hard.