WELL, SOMETHING DID CHANGE...

The world of the MOTU is certainly a strange one for a lay person. You may recall that emptywheel dug into AIG's retention plan and found a "ticking bomb" scenario that has now occurred: 2 managers at Banque AIG have resigned. What I don't understand is the second paragraph from this excerpt from Wall Street Journal article:

The executives at Paris-based Banque AIG, Mauro Gabriele and James Shephard, have resigned in recent days but have agreed to stay on for a transition, according to people familiar with the matter. In the wake of their resignations, AIG must replace them to the satisfaction of French banking regulators.

If they don't, French regulators may appoint their own designee to manage the bank -- an outcome that could trigger defaults under the bank's derivative contracts. The private contracts say that a regulator's appointment of a manager constitutes a change in control, according to a person familiar with the matter; the provision is often included in derivative contracts where parties want to preserve a way out if something about their counterparties changes.

Um, isn't the fact that AIG is now owned by the U.S. government a change? And what about all the executives who've left AIGFP?