This adds to posts about AIG's attempted Secret Releases of its Counterparties given during its near-death throes in late 2008, which are posted here on June 30, 2010 entitled, "Fed Demanded Secret Waiver Immunity by AIG: Bad Faith Too?"; also a post here on July 6, 2010, "AIG's Secret "Unknown Claims" Release Worthless Paper?", and another post exploring the Release and its language on Insurance Claims and Issues Web Log also on July 6, 2010, "Who Fleeced the Fiduciaries? AIG's "Unknown Claims" Release Could Be ... Worthless Paper". The contentions of the New York Fed, that these abnormal conditions are normal, are stated and addressed in a post here on July 12, 2010, "New York Fed: 'Not me'; Denies Forcing AIG Secret Release".
The insureds or "Counterparties" on certain Credit Default Swaps or Credit Insurance issued by AIG apparently wrote up a form "Termination Agreement" for AIG to sign for each of their CDS's. Here is a copy courtesy of New York Times reporter Ms. Louise Story: Download AIG Termination Agreement With Release Incl. of .Unknown Claims. The overly broad Release language is found in Paragraph 1(b)(ii) on page 2, and their "Unknown Claims" definition is just as overly broad in paragraph 1(b)(v) on page 3.
Note that the Release language includes "claims based on breach of fiduciary duty ..., aiding and abetting fraud or breach of fiduciary duty, ... [and] breach of the implied dovenant of good faith and fair dealing".
I have proofed and compared them to the provisions input on July 6, 2010 in the post, "Who Fleeced the Fiduciaries? AIG's "Unknown Claims" Release Could Be ... Worthless Paper". All the words quoted from the "Termination Agreement" are correctly and completely quoted in the post.
The conclusion of the July 6 post on Insurance Claims and Issues is accurate too: "The validity and effect of the secretly kept AIG Release of Counterparties, which was unearthed by New York Times reporters Louise Story and Gretchen Morgenson, are unlikely to be accepted at face value by the Courts in the United States." That includes the State and Federal Courts in New York. Paragraph 11 of the "Termination Agreement" provides that it "shall be governed by and construed in accordance with the law of the State of New York," and that each of the parties to it submits to jurisdiction both in the United States District Court for the Southern District of New York, and in any New York State Court "sitting in New York City".
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