Friday, March 20, 2009

Goldman Sachs Speaks on $12.9 billion in AIG Taxpayer Money

Goldman Sachs held a conference call on their nearly $13 billion in counterparty payments from AIG. As companies imploded last September, Goldman asked for more collateral from AIG. The NYT reported:

The insurer tried to settle its credit default swap contracts at a discount -- both before and after it received its first bailout last September. Goldman refused and ultimately secured everything it was owed by AIG.

Recall bankrupt Lehman Brothers credit default swaps settled at a deep discount. Of $72 billion in swaps netted to $21 billion, which turned into a $5.2 billion net funds transfer. Why should Goldman Sachs get "everything it was owed" by AIG? This is a much larger outrage than $165 billion in AIG bonuses. Goldman's $12.9 billion is roughly one tenth of taxpayer payouts to the global big money boys. Did everyone else get full payment on their credit bets through AIG?

I hope someone's keeping a tally on all the ways an imploded Wall Street sucks on the taxpayer wallet. How much has Goldman Sachs gotten? Let me count the ways. Of Goldman's $47 billion market cap, $23 billion came from taxpayers and $21 billion from government sponsored debt. That's $44 billion in corporafornication.