It sounds like the principle of keeping AIG whole on its obligations so that it can pay off to the banks at 100 cents on the dollar. This should make Jamie feel a little better about his bad derivatives trades.
And Blythe should rest easy knowing that Benny has her back on those massive metals shorts.
Sounds like they even plan to have the Fed backstop the derivatives trade in London.
Heads the banks win, tails those holding US dollars lose.
How will they support the next bailout? Austerity!