After reading Joe Nocera's piece on AIG, which I recommended below, the same point occurred to me as occurred to TPM Reader JP ...

RE: Joe Nocera's piece in the Times on 02/27

Why is it only the American government/taxpayer putting money into AIG when it is an international problem? Are European governments anteing up? Has the leadership, those responsible, at AIG changed?

"....and all those European banks whose toxic assets are supposedly insured by AIG would suddenly be sitting on immense losses. Their already shaky capital structures would be destroyed."

I believe the highest level of leadership was booted. They have a new CEO etc. I'm not sure how deep the purge cut, however. And the point about the US taking the whole hit for losses that would be suffered by European banks, yeah, not getting that. Clearly you are dealing with an international banking system in which you can easily cordon off systemic risk by continent. But the pattern of losses Nocera points to do suggest we should not be picking up the whole bill.