Nobody • 1y
And the housing market fell. The people who should not have gotten the loan in the first place were not able to repay the loan as the amount was increased. But at the end of the day these CDOs were insured right? Yes, but AIG became too greedy and they did not have enough funds to cover the costs of the bearers. AIG was deemed too big to fail as it was one of the biggest insurance companies and almost every other big banks and insurance companies had their policies, so if they failed, the global economy would have been doomed. So the government bailed them out by giving a massive cash loan to pay out these credit default swaps.
Young and energetic ... • 1y
Relevel by unacademy The concept was amazing of getting jobs from exam but what went wrong with them so they started selling courses and started malpractices for that One reason was that they were not getting partnered by companies What are the ot
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