AIG says emergency aid used to pay other banks

[Ognir]

Monday March 16, 12:15 am ET
By Jennifer Malloy Zonnas, AP Business Writer
Under fire for bonuses, AIG says over $90 billion of its bailout money went to other banks

NEW YORK (AP) -- American International Group Inc. used more than $90 billion in federal aid to pay out foreign and domestic banks, some of whom had received their own multibillion-dollar U.S. government bailouts.

The embattled insurer's disclosure on Sunday came amid outrage on Capitol Hill over its payment of tens of millions in executive bonuses, and followed demands from lawmakers that the names of trading partners who indirectly benefited from federal aid to AIG be made public.

The company, now about 80 percent owned by U.S. taxpayers, has received roughly $170 billion from the government, which feared that its collapse could cause widespread damage to banks and consumers around the globe.

"The ability of AIG to meet its obligations is important to the stability of the U.S. financial system and to getting credit flowing to households and businesses," Federal Reserve spokeswoman Michelle Smith said.

Some of the biggest recipients of the AIG money were Goldman Sachs at $12.9 billion, and three European banks -- France's Societe Generale at $11.9 billion, Germany's Deutsche Bank at $11.8 billion, and Britain's Barclays PLC at $8.5 billion. Merrill Lynch, which also is undergoing federal scrutiny of its bonus plans, received $6.8 billion as of Dec. 31.

The money went to banks to cover their losses on complex mortgage investments, as well as for collateral needed for other transactions.

Other banks receiving between $1 billion and $3 billion from AIG's securities lending unit include Citigroup Inc., Switzerland's UBS AG and Morgan Stanley.

Municipalities in certain states, including California, Virginia and Hawaii, received a total of $12.1 billion under guaranteed investment agreements.

The company said it used billions more to fund its Maiden Lane business, which was set up following the federal bailout to purchase toxic assets, and to repay debt and provide capital for some of its operations.

"I've been asking for this information for months. This is a good first step, but I'm concerned by how long it took,' said Rep. Carolyn Maloney, D-N.Y., who is chair of Congress' Joint Economic Committee.

The details from AIG came after Obama administration officials and top Republicans voiced sharp criticism over $165 million in bonus payments AIG said it must make Sunday. The contracts are part of a larger total payout which has been reportedly valued at $450 million.

In a letter to Treasury Secretary Timothy Geithner dated Saturday, AIG Chairman Edward Liddy said outside lawyers informed AIG that it had contractual obligations to make the payments and could face lawsuits if it did not do so.

Liddy said the company entered into the bonus agreements in early 2008 before AIG got into severe financial straits and was forced to obtain a government bailout.

AIG has agreed to the Obama administration's requests to restrain future payments.

Associated Press Writers Candice Choi in New York and Jeannine Aversa in Washington, D.C. contributed to this report.

http://biz.yahoo.com/ap/090316/aig_bail ... ?printer=1

[mgt23]

according to talmudvision this is where the moneys going
http://www.scribd.com/doc/13294757/AIGs ... terparties

[Ognir]

I'm calling Bullshit

All these OTHER banks being counter-parties, WHO THE FUCK ARE THEIR CLIENTS, they are the real one that made the money,   let's have a look at this list, would be more interesting than counter-party banks

[§N9sh2bj]

Horse shit.

They are all one big mafia - same thing ol' Jorg Haider said; just like the corporations are all subcorporations of the same corporation.

Dead paper doesn't talk, but men 'squeal like a pig'.

In other news, luxury car sales are up!

[MikeWB]

All roads lead to Goldman Sachs.

[CrackSmokeRepublican]

Keep an eye on the news announcements of this company over the next few weeks and months:
http://www.sungard.com/news.aspx

About SunGard
SunGard is one of the world's leading software and IT services companies.  SunGard serves more than 25,000 customers in more than 70 countries, including the world's 25 largest financial services companies.

SunGard provides software and processing solutions for financial services, higher education and the public sector.   SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software.

With annual revenue exceeding $5 billion, SunGard is ranked 472 on the Fortune 500 and is the largest privately held business software and services company on the Forbes list of private businesses. Based on information compiled by Datamonitor*, SunGard is the third largest provider of business applications software after Oracle and SAP. Continuity, Insurance & Risk has recognized SunGard as service provider of the year an unprecedented five times.  For more information, please visit SunGard at http://www.sungard.com.


We take very seriously our role to continually improve the software that underpins the world's financial systems.  The world's leading financial services institutions are relying on us.

After 25 years of developing software and managing the systems that help financial services institutions run their business, SunGard is still a leader. Our prestigious track record of industry awards is a reflection of our deep understanding of the specialized, mission-critical business processes that lie at the heart of the banking, securities and investments, and insurance industries.  From the beginning, we have applied our expertise to better serve our customers.

    * SunGard's financial systems account for and manage more than $25 trillion in investment assets
    * SunGard's financial systems process more than five million trades a day
    * SunGard's capital markets solutions manage $9 trillion in securities lending

-------

Interbanca Selects SunGard's Reech for Risk Calculations

March 5, 2009 — Milan
Interbanca S.p.A.,  an Italian banking  group, has selected SunGard's Reech RiskHedge, a risk management engine, for the valuation of its complex portfolios.  Reech RiskHedge will help Interbanca's risk department compute the Value at Risk (VaR) of its positions. Delivered on an application service provider (ASP) basis, Reech RiskHedge will help Interbanca keep entry and support costs low, while maximizing the speed of implementation.

As regulatory demands increase, SunGard's Reech RiskHedge will help Interbanca's risk department measure the risk of incurring loss due to fluctuation in security prices, option volatility and credit spreads. It will also help the bank produce various market risk reports that reflect market sensitivities or the complete VaR of the portfolio.

Andrea Liso, head of information systems at Interbanca, commented: "Interbanca's risk department decided to find a single risk management platform able to aggregate risk positions in accordance with industry best practices. We were looking for high quality of results, quantitative expertise and sophistication.  After a short selection process, SunGard's Reech RiskHedge was considered the appropriate solution and will help simplify our whole risk management process."

David Hassell, head of sales for SunGard's alternative investments business, said: "Interbanca was looking for a transparent and innovative risk engine that could help it manage the risk of its complex portfolios which include a broad range of asset classes, such as interest rate, credit, foreign exchange, equity and structured bonds. SunGard's Reech RiskHedge will help Interbanca better manage its portfolio risks."

Reech RiskHedge has been designed to give customers access to risk technology at a cost tailored to accommodate different portfolios and fund structures. This service can accommodate virtually any trade structure on a broad range of asset classes, making it suitable for a wide variety of portfolios and/or funds, irrespective of strategy and size. The ASP delivery method of SunGard's Reech RiskHedge allows users to access the service through a browser, with no investment in technology or infrastructure.

About Interbanca
INTERBANCA S.p.A. was set up in 1961 by Banco Ambrosiano, Banca d'America e d'Italia and Banca Nazionale dell'Agricoltura. Since its incorporation, it has been very active in lending and financing transactions for medium sized companies. After its entry into Antonveneta Group (the seventh most important Italian banking group) in 1997, Interbanca takes a strategic role on equity investments, investment banking and securities trading assisted by its new management team with proven experience and success. The bank's services are mainly aimed at medium sized companies. Accordingly it has set up special functions which have enabled the rapid development of new services. In January 2006 Interbanca within the Parent Bank Antonveneta enters into the Dutch Group ABN AMRO.

In June 2008 GE Commercial Finance and Banco Santander SA signed a definitive agreement to swap certain previously announced European assets(March 27th 2008). Under the agreement, GE will acquire Interbanca, assigned to Banco Santander following the carve-up of ABN Amro.

Interbanca has its own network of 11 branches throughout Italy (Ancona, Bari, Bologna, Brescia, Catania, Milan, Naples, Rome, Turin, Treviso and Vicenza). It also provides customers with comprehensive assistance by its qualified managers including access to capital markets and specialist services

About SunGard's Reech
SunGard's Reech provides independent portfolio valuation for derivatives and structured products, pricing and risk management. Reech is used by banks and brokerages, hedge funds, corporates and central banks to determine the value and risk parameters for a variety of products, from simple swaps to highly structured and exotic derivatives for asset classes including equity, fixed income, foreign exchange and credit. Reech FastVal is the independent OTC derivatives valuation service. It is available on an ASP basis, utilizing proprietary models and independent market data, collated and constructed from several reliable data sources. Reech RiskHedge is the risk management service for the hedge fund market, using independent data and delivered via an ASP interface.

[CrackSmokeRepublican]

SunGard Announces Formation of Global Trading Business

February 16, 2009 —

SunGard has announced the formation of its global trading business.  This follows the completion of the acquisition of GL Trade and is the culmination of several months of integration initiatives between SunGard and GL Trade. SunGard's global trading business will deliver a number of consolidated offerings across equity trading, market data, exchange traded derivatives and trading and risk management.

The new business is headed by Yassine Brahim, formerly chief executive officer of GL Trade. It is part of SunGard's financial systems business, reporting to Harold Finders, division chief executive officer. Pierre Gatignol, co-founder of GL Trade, has been appointed strategy officer for SunGard's financial systems business.

SunGard's global trading business provides multi-asset, front-to-back trading solutions for equities, fixed income, derivatives, FX and commodities. The solutions it offers include: GL Net, one of the world's largest networks for electronic trading and market data; MarketMap, a market data, news and analysis service; and GL Clearvision, a leading platform for clearing and allocation processes. Existing SunGard solutions such as Brass, GMI and the SunGard Transaction Network will also be integrated with parts of the global trading solution suite. This integration will result in a number of new customer offerings that will be launched throughout 2009.

Harold Finders, division chief executive officer for SunGard's financial systems business, commented: "The acquisition of GL Trade and the formation of our global trading business is good news for SunGard's customers. Yassine and his team bring to SunGard a strong solution suite, complementary geographical reach and a wealth of experienced people.  This new organization will help extend SunGard's leading position as a provider of global trading network and connectivity solutions for buy- and sell-side firms."

About SunGard Global Trading
SunGard provides multi-asset, front- to back-office trading solutions for equities, fixed income, derivatives, FX and commodities on exchanges worldwide. These solutions support full lifecycle trading and trade processing activities including information services, market connectivity and order management that help improve trade efficiency and risk monitoring.

http://www.sungard.com/pressreleases/20 ... 21609.aspx


SunGard Enhances its Reech Analytics Library

November 19, 2008 — London

London, 19th November 2008 – SunGard has released a new version of its Reech Analytics Library (REAL), a suite of analytics tools for exotic derivatives pricing across multiple asset classes. REAL version 3.4 includes a number of solution upgrades and enhancements including new models for equity-interest rate hybrids and new calculation of Greeks, measuring sensitivity to volatility and interest rate movements (www.sungard.com/reech).

The new version delivers a new model for interest rate hybrid instruments, which combine the features of interest rate and equity structured products.  Demand for the model has been driven by large banks whose structured products desks are creating these trades for their clients.

REAL version 3.4 offers calculation of Greeks, measuring the sensitivity to volatility and interest rate movements, in its equity and FX libraries for both local and stochastic volatility models. It also provides a wider range of first-order Greeks for equity, FX and interest rate models and enhances SunGard's Reech FastVal solution, the independent valuation service for OTC derivative products, of which REAL is a key component.

Gavin Lee, chief operating officer of SunGard's Reech business, commented:  "The launch of REAL 3.4 is the result of a sustained programme of investment and development in SunGard's Reech and FastVal solutions. Investors are increasingly looking for financial products tailored to their specific requirements - and these products often combine exposures to what were previously considered separate markets. Those who design, sell and buy such products need the tools to accurately estimate their value and risk exposures. The continuing development of our analytics tools means that we are able to help ensure that our customers have tools to accurately price and manage the risk of their derivative portfolios."

About SunGard's Reech
SunGard's Reech provides independent portfolio valuation for derivatives and structured products, pricing and risk management. Reech is used by banks and brokerages, hedge funds, corporates and central banks to determine the value and risk parameters for a variety of products, from simple swaps to highly structured and exotic derivatives for asset classes including equity, fixed income, foreign exchange and credit. Reech RiskHedge is a risk management service for the hedge fund market, using independent data and delivered via an ASP interface. Reech FastVal is an independent OTC derivatives valuation service. Reech FastVal is available on an ASP basis, utilizing proprietary models and independent market data, collated and constructed from several data sources.

[kolnidre]

Keep an eye on the news announcements of this company over the next few weeks and months:

I can't make much sense of all the lingo in those posts. Can you boil down what SunGard's global trading system could mean? Is it some kind of derivative valuation mechanism to legitimize and pawn off derivitive exposure?

A cycling teammate and training partner of mine used to work for SunGard out of the NWO pilot city of Singapore. He was always going around to install and maintain software systems at banks around the region.

[CrackSmokeRepublican]

Sungard has seemingly decent 9-5 type people working for them. I think the problem is they don't know what they are really selling though. It is kind of like Mickey Mouse in Fantasia - a little magic with a Global, integrated "Arena" working from a Quant's model can bankrupt a lot of people very quickly.

Here's news on Peloton Partners using FrontArena in 2006 to manage their "VAR" as a hedge fund:

---
http://www.allbusiness.com/banking-fina ... 003-1.html
2006

LONDON -- SunGard (http://www.sungard.com) today announced that The Banker, a leading global financial intelligence magazine has selected FRONT ARENA, (http://www.sungard.com/frontarena) as winner of 'Buy-side Project of the Year' for its successful on-time, on-budget implementation at hedge
fund, Peloton Partners LLP. FRONT ARENA, SunGard's cross-asset trading solution was also highly commended in the 'Application of the Year' category.

The Banker Technology Awards are designed to provide financial institutions and their clients across the world with an objective analysis of the technical expertise that exists within key business areas. The awards highlight those solutions and projects that have made a real difference over the past 12 months. Peloton Partners' choice of FRONT ARENA resulted in an exceptionally quick go-live period of 62 days.
---

Two years later here's news of Peloton Partners going bankrupt. Notice the "liqudation" of positions.
----

2008-02-29 17:00:28
Peloton Partners LLP Asset Seizures A Sign of Things to Come for Hedge Funds?

dave manuel is talking and raising his hand - explaining   Yesterday we told you that Peloton Partners had decided to shut down their "ABS Master Fund", a fund that had bet against the subprime credit market and had made over 87% for its shareholders last year.

Just a few months into 2008, Peloton Partners LLP had decided to shut their ABS Master Fund down and halt redemptions in their smaller "Multi-Strategy" fund.

The company had run into two problems. Number one, it had taken a loss in some mortgage-related investments so far in 2008. Number two, and a much bigger problem, is that the hedge fund was extremely leveraged and their lenders were starting to get nervous about the level of holdings that Peloton had. According to some estimates, Peloton held $10 billion in assets but only had $2 billion in assets in their "Master Fund".

The two managers of the fund, Ron Beller and Geoffrey Grant, had reportedly been trying to find a solution to their problem without having to move into forced liquidation of their positions. Obviously the banks (which reportedly included UBS and Deutsche Bank) had been breathing down their necks to either lighten their positions or find another solution. Reportedly Citadel Investments Group had a look at the books to see if they might be interested, but nothing came of it.
----------
Hi Kolnidre,

Software like this, created and managed by "professionals",  is probably what AIG was using to manage its "risk" portfolio as a counter party. The clearing mechanism, run by Sungard I think, has probably just netted out the players as institutions have collapsed. Like the DTCC, it is a global clearinghouse and like in any casino - it is probably just  waiting for AIG to get a "reload" from the US taxpayer-Jew Run Fed to finish the netting out. Hedge Funds hooked in with Sungard's Front Arena are likely waiting for their accounts to get liquid "wins" from the AIGs and other banks.  The collapse we've seen is essentially a pirating of "good" faith which could only be allowed to happen as Jewish Business practices and Morals became the accepted norm since the advent of Globalization.  The world is currently hostage to a group of about 50,000 people trading on platforms like this around the world 24/7.  Sungard is what the Big Players have used since the late 1990s. I don't think Sungard is necessarily evil but when evil bettors (wannbe Jewish Gambler types) run their "algorithms" and "trading strategies" at the highest levels, evil scams and huge losses result.  Guess who is expected to make it all liquid again? It's kind of like playing with Excel and making a mistake, there's no "undo" button or F9 to recalculate probability outcomes for the losers - they either collapse or wait to get reliquified by the Govt.-Taxpayer or a larger partner.  IF A WORLD CURRENCY IS CREATED IT WILL PROBABLY RUN ON THIS SH*TTY LITTLE SYSTEM.  If a banker or Quant PHD loses more than what they could make working a day job with their hands at the average Labor cost, they should get their fingers cut off.

This is an evil system, run by nice, academic oriented people who have adopted a Jewish cut-throat business attitude since Reagan-Thatcher.  All the idiots who have lost big lately were using valuation models that ran on systems like these (Front Arena).  Now Sungard wants to release more valuation tools and sell them to new customers. But it is a shark infested pool that the quants swim in.  If a country or large bank doesn't trade with something of this calibar, they can get knicked badly.  If they do trade with it, they are quick to attack at every opportunity.  It is kind of like a surreal world of "trade" and algorithms that has real world consequences.   We are all just expected to bring more chips to the table  when it would be simpler to just shoot the greedy assholes (yes, they are greedy assholes) and turn off the machine and of course kick the Jews out of business, schools, media and government so that "common sense" is reinstated.
Basically, PHDs in mathematics shouldn't gamble among themselves at the behest of their Jew-Greedy bosses.  Without a culture of unbridled greed brought on by Jewish personalities, Sungard would have remained a simple IT services company instead of a player in the collapse of the global financial system.

[CrackSmokeRepublican]

Jim Sinclair gives this article which is quite informative....

http://www.jsmineset.com/
------

How to create a 1930s type equity rally in a fledgling depression caused by a credit lock up.
By Mr. J.P. Morgan (aka Jim Sinclair)

JPM had to stop the short pool raids that were being conducted by Jesse Livermore. Morgan invited Livermore to visit him. They came to some unpublished arrangement, and Livermore ceased his short selling pool operations.

Today it will require more than lip service so far offered to a future US reinstating of the "Up Tick" rule. It must happen in its full form.

Saying shame-shame to the naked short sellers is a waste of time.

Canada will have to own up to the fact that they are the planetary naked short sale central requiring that brokers ask but one time if the client intends to deliver. The client of course says yes. The Canadian broker then has performed their complete regulatory duty. The client fails to deliver for months or years.

Since a naked short sale results in a credit of the account there are no problems with margin or back office wink-wink.

What is required is the old fashioned uptick rule to come back and be strictly enforced in the USA. T3 (trade date plus three days to deliver) for a fund or institution and T21 (trade date plus twenty one days to make delivery) for an exchange floor or NASDAQ based market maker.

Brokers representing naked short sellers who call themselves specialist/market makers in the shares are kidding no one. They are not market makers that stand ready at all times to make bids and offers in the company being naked shorted via them.

What the naked short has done compared to a legal short is expand the capitalization of the company under attack fraudulently. The legal short seller by borrowing the share to make delivery delivers registered shares and does not expand the capitalization of the company.

In order for a 1930s type rally to have legs, talking about controlling the hammer and sledge no uptick and naked illegal short who fraudulently expanding a company's capitalization must be controlled and known to be under control. A public roast of a few of those that do not get the message and back off will be necessary.

Short selling is a necessary part of market, but like all games there must be rules and those rules must be adhered to.

J.P. Morgan then turned his attention to the banking system, which was locked up credit wise.

J.P. Morgan's loaning of funds to each bank came with the specific binding orders that the funds were to be used to make loans and not for any other purpose.

The problem now is that every penny that enters the front door of an AIG, Citi or any other busted beggar goes out the back door to pay off the winners of OTC derivatives.

As long as funds in equals the amount going out the back door, no 1930s type rally can have legs. Thus there will be no "timeout" in the downward spiral during which practical solutions might be sought.

TARP, LARP, FLARP and whatever is to come cannot be for the purpose of making some shadow figures in the dark trillionaires.

Bailouts must be for making loans within and outside the system. Failing to make all the above happen means all hope is lost.

The Fed can buy every instrument the Treasury prints for the rest of your life. Without JP Morgan's measures as above, it will only result in the US dollar at a negative value.

I know exactly how to turn this thing around, buying time for a solution yet hold no hope that it will occur.

Those that would lose by doing the right thing have the most powerful lobby opposing such actions backed by untold amounts of money and are buying every politician that ever ran for or was appointed to office.

The West has never had more sinister enemies than their own financiers seeking to have more money than any being ever could spend.

Jim Sinclair's Commentary

These are real people with real problems and deep suffering delivered to them by the degraded, amoral, filthy rich of OTC derivative finance. The USA needs no external enemies when this type of cancer is rotting it from within.