I find this entire G20 news almost a game of chicken. Now they are discussing tackling toxic assets:

Officials meeting near London this weekend outlined guidelines on how governments should rid banks of distressed securities that have devastated companies from Citigroup Inc. to Royal Bank of Scotland Group Plc. With the G-20 calling the fight its “key priority,” Treasury Secretary Timothy Geithner vowed in an interview to “move quickly.”

But haven't we heard this before?

It's almost like hot potato with no one wanting to admit to holding billions in worthless derivatives.

What is more interesting is how other countries want the United States to clean up these toxic assets while the U.S. seems to be pushing more spending.

Meanwhile AIG has released a partial counterparties disclosure.

Severe valuation losses on the super senior multi-sector credit default swap portfolio of AIG Financial Products Corp. (AIGFP) triggered collateral provisions in the swap
contracts, creating a liquidity crisis for AIG in September 2008. The Federal Reserve Bank of New York (FRBNY) provided an emergency $85 billion loan to AIG to meet short-term
cash needs. The aid received by AIG helped avoid severe financial disruptions by providing liquidity to important financial institutions and municipalities.

What is the biggest hint to me is the payouts as well as attempts to cancel CDSes. Why the entire world cannot declare all of these CDS contracts plain null and void, say "bummer holders" you lose or some sort of plan to wind them down, simultaneously and disclose that plan to all, at the same time.