How the loan was sold multiple times.

THE CLAIM FOR HOMEOWNER ROYALTIES It is like any hedge contract. The buyer of the hedge contract is the investment bank, sometimes working through sham conduits. It is saying it wishes to ensure stability of its “portfolio.” It provides triple agency rating and “insurance” from AIG for instance while at the same time buying…

“When the credit market collapsed (nobody was willing to trade in derivatives) Goldman and others had insurance contracts pending with AIG et al. The bailout was used to fund AIG so that Goldman could receive $150 Billion on losses never incurred by Goldman…”

 

Source: How the loan was sold multiple times.