This may be a stupid question, but who is it that's having credit events that are triggering CDS's to pay out? We all keep reading about Govt dollars flowing through AIG to their CDS counterparties. However, I cannot think of any huge bankruptcies that might be triggering CDS payouts on that scale. Or is AIG just unwinding it's CDS positions, and given that default likelyhoods are now much higher it's just really really expensive to buy their positions back (and they're using taxpayer $ to do it)? How about this last round a month or two ago, where European banks (and Goldman) got something like $40B. Who had a "credit event" that triggered these payouts? Lyondell? Equistar? Nortel? I mean these are fairly big names, but enough to cause a 40 billion payout? Also, we used to hear about the ISDA clearing auctions of the CDS's, but I haven't heard anything lately. Did they go underground or something? Maybe I've been living under a rock or something, but I haven't really heard.