puszysty

So the State of Michigan is suing AIG. I learned about this through work, but it's been printed publically, so I'm ok to discuss it. At least the basics. The deal is that Michigan claims that AIG was falsely advertising the security of Credit Deafualt Swaps (CDS). Subprime mortage investments, so you'd think someone would've known better than to believe CDSs were as infallible as AIG claimed. It's a class action suit, but I believe Michigan is the only actual state involved. Part of me believes that AIG was lying to try and save their asses, but another part believes this is a desperate move by Michigan, who is the most economically downtrodden state in the union right now. It's not Michigan's first lawsuit for financial losses. And if they do win damages, the money is going to be coming from the bailout package AIG received, considering the nosedive their stocks took, so it's not like they'd be getting company money but rather tax money from the suit.

Just found that interesting and thought I'd share.

It ain't a good time to be a state employee in Michigan right now, I will tell you that.

I doubt the State of Texas will get involved in the suit...I don't even know if we invest with AIG. Maybe we do, who knows. But Texas is doing rather well comparitively in terms of losses.

Info: http://michigan.gov/ag/0,1607,7-164--211225--,00.html Here's a link. Unfortunately the Freep won't allow me access to their archives without an account. Boo.