The blogosphere is buzzing about a post on Zero Hedge. The author posits that the reason the big banks were bragging about their January and February profits was that AIG was cutting sweetheart deals with them on their mutual CDS deals.

Lots of rumors and innuendos here, so it’s probably best to wait until some corroboration materializes. If it’s true then the taxpayer just got hosed as AIG would have been used to once again launder bailout money for the banks. But, as I said let’s not get ahead of ourselves.

Take a few minutes and read the post and let me know what you think.