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View Diary: A.I.G. May Sue U.S. Gov’t For $25 Billion As It Airs “Thank You, America!” TV Ad (205 comments)

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  •  Well, there's a lot more to it than that... (6+ / 0-)

    ...truth is, AIG was pretty damn irresponsible and/or incompetent when it came to selling credit default swaps to Wall St. players/TBTF's (Goldman, in particular, but there were many others).

    Throughout 2007 and through the first half of September 2008, Goldman seized upon AIG's "vulnerabilities" and then did some serious  -twisting to force AIG to comply with the terms of their CDS contracts, "and then some."

    At that point, the government, via former Goldman CEO and then-Treasury Secretary Henry Paulson intervened, and essentially nationalized AIG as it morphed into a conduit to, supposedly, make good on AIG's CDS' contracts.

    Truth be told, IMHO, everyone should've taken a hit as it was worked out in the marketplace, and the government never should have entered into the fray with a bailout.

    If you follow Taibbi, this was a primary part of the reason why he labelled Goldman the "Vampire Squids," which was/is really his euphemism for all of the TBTF's on Wall Street.

    Make no mistake, IMHO, there's plenty of blame here to cast around ALL of Wall Street and our government. AIG was definitely buying into the bullshit credit ratings agencies' ratings of the shit being sold on the street at the time. And, if anything, AIG was guilty of extremely gross incompetence fueled by even more extreme greed...but that was further fueled by a totally captured regulatory environment (which really hasn't improved much, if at all; and, I'd argue it's actually worse now than it was then), and a Goldman-Sachs which, still, to this day, behaves as if it's above the law, and just about everything else in our society, too.

    "I always thought if you worked hard enough and tried hard enough, things would work out. I was wrong." --Katharine Graham

    by bobswern on Tue Jan 08, 2013 at 06:42:11 AM PST

    [ Parent ]

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