June 19, 2013
Regulators Made Sure Goldman Sachs Got All of Its Bailout Money
Posted on Jun 29, 2010
A devastating report in The New York Times documents how Timothy Geithner’s New York Fed worked tirelessly to make sure that AIG was forced to pay banks such as Goldman Sachs 100 percent on dubious contracts that might otherwise have been slashed or subjected to lawsuits. For his efforts, Geithner was promoted to run the rest of the nation’s economy.
The article is full of revelations that would be mind-numbing if we weren’t so used to reading about how taxpayers have been fleeced in the meltdown.
At one point, a regulator sends Goldman’s CEO an e-mail thanking the bank for its patience. The Treasury Department’s point man for the AIG bailout, a former Goldman executive, still held Goldman stock when working out the deal, reports the Times.
AIG itself was forced to sign a waiver giving up the right to sue banks over suspect contracts.
You don’t have to be a conspiracy theorist to follow the money: In the $182 billion bailout of AIG, Goldman Sachs and other banks that helped cause the financial crisis made out like, well, bandits. —PZS
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