Over the weekend the New York Times reported that Goldman helped push AIG to the edge.
Here are some fun facts:
2003 Goldman creates mortgage securities that AIG insures against loss.
2006 AIG stops writing insurance on securities that contain subprime mortgage bonds (looks like they had an idea this might blow up...)
2006 Goldman increase negative bets on mortgage market basically hedging against the monster they created.
Fast forward to November of 2008 and Goldman gets 8.4 billion in AIG payments and then the Fed pays Goldman another 5.6 billion.
If you have time to read the entire article it's fascinating.
No comments:
Post a Comment