New York Insurance Superintendent Eric Dinallo said credit default swaps – the shaky derivatives at the heart of last year's near collapse of American International Group (AIG) – also turned problems in the subprime mortgage market into a major crisis."Credit default swaps are the rocket fuel that turned the subprime mortgage fire into a conflagration," Dinallo wrote in an opinion piece for the Financial Times, based in London. "They were the major cause of AIG’s – and by extension the banks’ – problems."Dinallo and Gov. David Paterson have called for a ...
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