Could Goldman's be insured against legal judgments against it by AIG? ...therefore be yet another government-backed handout (Through AIG, paying them commissions and what-not, to hand taxpayer dollars back to itself, after costing millions more in legal fees, rather than collecting stolen money from Goldmans itself?)
I was struck by this description of how and who was hurt by Goldman Sachs via Curious Capitalist blog:
First of all, the investors who bought the securities lost about $50 billion on them. Those investors were mostly pension funds. Second, Goldman insured these purposefully useless mortgage bonds with AIG. So all of us, taxpayers that is, had to pay up for those losses when AIG had to be bailed out. So this suit is really just a case of the government trying to get its money back from Goldman.
I suppose this is more a search for an answer rather than a Diary proper.