AIG FP was running an illegal Ponzi scheme all along. All the 'investors' understood this.
Every contract written by AIG FP was determined to have a risk of $0 in claims. It all went to the bottom line, and got paid out as bonuses. They learned the secret of how to turn lead into gold, and attached a perpetual motion machine to it. Any relationships between risk and reward ceased to exist.
Their analysis was based on their knowledge that housing would rise 5% per year, forever. No matter whether borrowers defaulted or not, the ever-rising property values would heal all wounds.
They were all in on it. AIG, Wall Street Banks, Rating Agencies, etc.
Since it was a Ponzi scheme, it had to collapse eventually. Prime loans, sub-prime, makes no difference. Ponzi schemes always collapse. When this one collapsed, all the 'investors' were made whole by the extortion of the taxpayers, known as the TARP bailout and others.
So, file charges for Ponzi, Extortion and Racketeering. Let the courts decide. And get all our $ back.
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"When this one collapsed, all the 'investors' were made whole by the extortion of the taxpayers, known as the TARP bailout and others."