Word: socgen
(lookup in dictionary)
(lookup stats)
Dates: during 2010-2019
Sort By: most recent first
(reverse)
...instance, according to Blackrock was willing to unwind the bond insurance its had bought from AIG on its lowest quality bonds for 90 cents on the dollar, or for 10% less than what AIG had originally promised to pay. About 30% of the $16.4 billion in CDS contracts that SocGen had bought from AIG were on bonds rated BBB or worse. A 10% discount on those contracts would have saved AIG $475 million...
BlackRock, though, stressed that it is unlikely that any of those banks would have been willing to make a "deep concession" on price. Nor is it clear that all of the deals, including those with SocGen or UBS, could have been completed. French regulators pressured SocGen and Calyon not to negotiate with AIG. What's more, BlackRock said that investment bank Merrill Lynch, which had recently agreed to be purchased by Bank of America, was not willing to strike a deal. If AIG had then paid off only Merrill's bond insurance in full, the other banks may have balked...