Goldman’s Hand in AIG’s Collapse
Recently disclosed internal documents and an audio recording regarding a 2008 securities standoff between Goldman Sachs and insurance giant AIG appear to be the smoking guns necessary to pinpoint Goldman's culpability in the mortgage meltdown and the collapse of AIG.
Recently disclosed internal documents and an audio recording regarding a 2008 securities standoff between Goldman Sachs and insurance giant AIG appear to be the smoking guns necessary to pinpoint Goldman’s culpability in the mortgage meltdown and the collapse of AIG. –JCL
Rock Solid JournalismThe New York Times:
Billions of dollars were at stake when 21 executives of Goldman Sachs and the American International Group convened a conference call on Jan. 28, 2008, to try to resolve a rancorous dispute that had been escalating for months.
A.I.G. had long insured complex mortgage securities owned by Goldman and other firms against possible defaults. With the housing crisis deepening, A.I.G., once the world’s biggest insurer, had already paid Goldman $2 billion to cover losses the bank said it might suffer.
A.I.G. executives wanted some of its money back, insisting that Goldman — like a homeowner overestimating the damages in a storm to get a bigger insurance payment — had inflated the potential losses. Goldman countered that it was owed even more, while also resisting consulting with third parties to help estimate a value for the securities.
After more than an hour of debate, the two sides on the call signed off with nothing settled, according to internal A.I.G. documents and an audio recording reviewed by The New York Times.
In 2026, amid chaos and the nonstop flurry of headlines, Truthdig remains independent, fact-based and focused on exposing what power tries to hide.
Support Independent Journalism.
There’s a crucial institution in Washington that few in the media seem to be paying attention to, even as President Trump quietly makes it his own.
A look at the day's political happenings, including a bipartisan agreement reached on immigration reform and Obama and Clinton give a joint interview on "60 Minutes." A look at the day's political happenings, including a bipartisan agreement reached on immigration reform and Obama and Clinton give a joint interview on "60 Minutes."
A look at the day's political happenings, including AIG's decision on whether to join a lawsuit against the government over the financial crisis bailout and the White House's response to a petition to deport Piers Morgan.
A look at the day's political happenings, including Gabrielle Giffords' new PAC, Elizabeth Warren admonishing AIG and Nate Silver talking politics and data analysis on Reddit.
In the ultimate act of corporate greed, the insurance giant--which received a bailout from the government to the tune of $182 billion--is showing what a truly unscrupulous and morally bankrupt organization it is by mulling whether to join a lawsuit against Uncle Sam over unfair bailout terms.
The natural gas industry is waging an aggressive public relations campaign to bolster investor confidence, despite evidence showing that shale gas is an unreliable resource and that the production process releases large amounts of methane into the atmosphere. The natural gas industry is waging an aggressive PR campaign to bolster investor confidence, despite evidence that the production process releases large amounts of methane into the atmosphere.
You need to be a supporter to comment.
There are currently no responses to this article.
Be the first to respond.