FT is running this story this morning.
http://www.ft.com/cms/s/0/ca318d8a-0574-11df-a85e-00144feabdc0.html
Interesting story in the sense that the Treasury and AIG has been in the news constantly of late. This may alleviate some pressure on Geithner although his days are numbered after yesterdays Mass. election results.
"The rising value of collateralized debt obligations bought during the Federal Reserves rescue of AIG is one of several factors stirring hopes that the central bank will be able to recover the money it used to bail out the insurer."
-This is highly unlikely even though Maiden Lane III assets are now at $45. By who's estimations? CDO prices have risen because liquidity is a plenty and more dealers are marking them up just before bonus season. Who in their mind believes that Treasury can sell the whole lot of this garbage CDO at anywhere near full valuation? The ABS CDO market is extremely illiquid and there are no more morons to sell them to. The only idiots that will them are the taxpayer.
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