Goldman Sachs Told It Was Getting 100 Cents On The Dollar From AIG, Top Exec Says (VIDEO)


AIG and federal authorities did not negotiate with Goldman Sachs when it came to the firm’s controversial $12.9 billion payout from AIG, courtesy of taxpayers, a top Goldman official told Senators today.

After the federal government stepped in to rescue the teetering insurance giant in the fall of 2008, the New York Fed, then led by current Treasury Secretary Timothy Geithner, directed AIG to pay its counterparties 100 cents on the dollar on their complex derivatives deals. More than $27 billion of taxpayer money went into the coffers of firms like Goldman Sachs and Deutsche Bank. The firms were also allowed to keep $35 billion in collateral previously posted by AIG.

via Goldman Sachs Told It Was Getting 100 Cents On The Dollar From AIG, Top Exec Says (VIDEO).

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