For no good reason, AIG signed an agreement at bailout giving Goldman Sachs immunity from legal action
AIG was sinking fast. It needed cash, and it needed it fast. In stepped the Government’s Fed team….staffed up to the gunnels with former Goldman Sachs staffers like Dan Jester and Hank Paulson. And they pushed an arm up AIG’s back with a simple deal: no immunity for Goldman, no deal.
So when AIG got the Fed’s bailout money and paid off its bank creditors, synchronisedprecisely with the receipt was a closure signing in which the bank forfeiting any rights to sue Goldman Sachs.
The financial enquiry report buried this information halfway through 800 pages in a small-print footnote. The text states that Goldman ‘gave a good and valuable consideration’ to AIG in order to secure the waiver: but this is untrue – AIG did not get a red cent from Goldman Sachs.
It wasn’t remotely in AIG’s interest to agree to this waiver. The waiver was forced on AIG by the government, and specifically by Treasury and the New York Fed officials….working on behalf of their dear old alma mater.
Doesn’t give one much faith in any of those myriad worldwide charges against Goldman finally sticking, does it?