The Real AIG Scandal

The feds must investigate AIG's fishy $12.9 billion payment to Goldman. - By Eliot Spitzer - Slate Magazine: "The Real AIG Scandal, Continued!

The transfer of $12.9 billion from AIG to Goldman looks fishier and fishier.
Posted Sunday, March 22, 2009, at 9:42 AM ET

The AIG scandal is getting ever-more disturbing. Goldman Sachs' public conference call explaining its trading relationship and exposure with AIG established once again that Goldman knows how to protect itself. According to Goldman, even if AIG had failed, Goldman's losses would have been minimal.

How did Goldman protect itself? Sensing AIG's weakening capital position through 2006 and 2007, Goldman demanded more collateral from AIG and covered outstanding risk with instruments from other firms. Continued...