Shouldn't the government be prosecuting and confiscating the ill-gotten wealth of all CDS fraudsters? If AIG, or other CDS seller, sells CDS for more liabilities than they have assets, isn't this outright fraud? They're saying we're good for this risk, but they're not. They say they can pay if the bond defaults, but they cannot. Isn't this just outright fraud? Nothing but a con job. The real moral hazard is letting these conmen keep their ill-gotten gains, so that they can plan for the next "rob the common purse" hit. 25 to life for all these criminals with complete asset confiscation and hard labor.