hvactec
VIP Member
The key points copied:
* The people at Goldman Sachs invested in mortgage-backed securities they expected to decline in value in order to make money off the insurance claims.
* Due to a long-standing relationship, they went to AIG for a kind of insurance credit default swaps which were not regulated.
* They then used other companies, including Société Générale, to purchase more of the unregulated insurance that AIG might not have otherwise underwritten in order to manage its own risk.
* When Goldmans investments declined, they submitted insurance claims for the losses, but insisted on determining the amount of their damages on their own, without any input from AIG, any auditor or the market.
* After Goldman got as much money out of AIG as they thought they could, their stock analysts issued a report about how AIG was bleeding cash and their creditors wouldnt negotiate, without mentioning that AIG was bleeding cash because of them and that Goldman was the creditor that wouldnt negotiate. AIGs stock tanked.
* The government stepped in, took an 80 percent share in AIG and then paid Goldman and the other creditors all the money theyd asked AIG for at the start of the negotiations in 2007, without using their power to force AIGs creditors to negotiate.
Read more Here Better Economics: The Goldman, Bush, Paulson, Geithner fraud
* The people at Goldman Sachs invested in mortgage-backed securities they expected to decline in value in order to make money off the insurance claims.
* Due to a long-standing relationship, they went to AIG for a kind of insurance credit default swaps which were not regulated.
* They then used other companies, including Société Générale, to purchase more of the unregulated insurance that AIG might not have otherwise underwritten in order to manage its own risk.
* When Goldmans investments declined, they submitted insurance claims for the losses, but insisted on determining the amount of their damages on their own, without any input from AIG, any auditor or the market.
* After Goldman got as much money out of AIG as they thought they could, their stock analysts issued a report about how AIG was bleeding cash and their creditors wouldnt negotiate, without mentioning that AIG was bleeding cash because of them and that Goldman was the creditor that wouldnt negotiate. AIGs stock tanked.
* The government stepped in, took an 80 percent share in AIG and then paid Goldman and the other creditors all the money theyd asked AIG for at the start of the negotiations in 2007, without using their power to force AIGs creditors to negotiate.
Read more Here Better Economics: The Goldman, Bush, Paulson, Geithner fraud