Saturday, July 03, 2010

Self-Fulfilling Prophecy? Panel Pushes Goldman on AIG Collapse

click on title for complete article.............


Thursday 01 July 2010

Self-Fulfilling Prophecy? Panel Pushes Goldman on AIG Collapse


by: Greg Gordon McClatchy Newspapers Report



(Photo: Jesús Gorriti / Flickr)
Washington - Goldman Sachs executives first threatened to stop making exotic trades with the American International Group in July 2007 unless the insurance giant posted $1.8 billion in cash collateral to compensate for a slide in the mortgage securities market, internal AIG e-mails show.
When AIG refused to meet its demands, Goldman began betting hundreds of millions of dollars on the insurer's collapse, ramping up those wagers to $3.2 billion over the next 10 months in a strategy that put AIG under huge financial pressure, a congressional commission found.

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