Goldman admits it had bigger role in AIG deals

[notesdev]

WASHINGTON — Reversing its oft-repeated position that it was acting only on behalf of its clients in its exotic dealings with the American International Group, Goldman Sachs now says that it also used its own money to make secret wagers against the U.S. housing market.

A senior Goldman executive disclosed the "bilateral" wagers on subprime mortgages in an interview with McClatchy, marking the first time that the Wall Street titan has conceded that its dealings with troubled insurer AIG went far beyond acting as an "intermediary" responding to its clients' demands.

The official, who Goldman made available to McClatchy on the condition he remain anonymous, declined to reveal how much money Goldman reaped from its trades with AIG.

However, the wagers were part of a package of deals that had a face value of $3 billion, and in a recent settlement, AIG agreed to pay Goldman between $1.5 billion and $2 billion. AIG's losses on those deals, for which Goldman is thought to have paid less than $10 million, were ultimately borne by taxpayers as part of the government's bailout of the insurer.

http://www.mcclatchydc.com/2010/06/29/96779/goldman-admits-it-had-bigger-role.html

[FBaggins]

1. Spelling error in your piece.

There's only one "e" in "raped"

[Democrats_win]

2. American taxpayers bailed them out and European banks too: what did we get?

According to the article, Goldman Sachs got billions from their 10 million dollar investment in AIG insurance. European banks also got money from our bailout of AIG. So what do we get: talk of the need to reduce deficits. This means that Europeans and Americans will lose their jobs so that rich banksters can have a third home with an infinity swimming pool.