#1 was Société Générale. Here's a litmus test for what's crap, populist analysis vs. actual critical thinking. if someone say's "Paulson bailed his buddies out" but fails to mention Soc Gen or Deutsche Bank (#3 on the AIG list) then you know you're dealing with a clown. Besides, given that Paulson sold his stake in GS when he became Treasury Sec, a move that cost him an additional few hundred million, I'd suspect the Hankster felt little impetus to goose GS stock even further.
Where did those derivatives originate? I am assuming that is the heart of the matter, but after all, I am just a clown.
If I buy a put and you sell it then I "created" a derivative. Silly me for thinking that the seller would man up and not squawk if he gets toasted. For how many years did AIG 'sell protection" to hedgers in a rising market and walk away not only unscathed but with mega-profits?