AIG Secrets


Sorkin doesn't get into this in his book, but it's there, bubbling up, begging to be asked:

The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show.

AIG said in a draft of a regulatory filing that the insurer paid banks, which included Goldman Sachs Group Inc. and Societe Generale SA, 100 cents on the dollar for credit-default swaps they bought from the firm. The New York Fed crossed out the reference, according to the e-mails, and AIG excluded the language when the filing was made public on Dec. 24, 2008. The e-mails were obtained by Representative Darrell Issa, ranking member of the House Oversight and Government Reform Committee.

As I wrote yesterday, there was a lot of self-dealing in the run up to the AIG bailout. Morgan Stanley execs were clearly worried that Goldman was going to 'steal everything.'

Vampire squid sounds about right.


Sean Paul Kelley January 7, 2010 - 12:52pm
( categories: Global Financial Crisis )

Why don't they step in and demand that those payments be adjusted to a more honest valuation? As you said above SP, wait, don't answer that. The campaign brib, er, contributions are rolling in nicely.

Zman1527 January 7, 2010 - 3:28pm

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