Did Goldman Sell Its $2.5 Billion AIG CDS While In Possession Of Material, Non-Public Information?

Tyler Durden's picture

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TraderMark's picture

Following up on your story on SocGen's excellent analysis on Japan's sovereign debt yesterday, Kyle Bass of Hayman Capital this morning - "Japan defaults in 3-4 years" (or devalues) and US to follow in 10-12 years.

(7 min video)


suteibu's picture

Great video.  Thanks for the link.

WaterWings's picture

Here's an interesting video:


"Is that a bible! Hit the deck!"

suteibu's picture

I saw that one earlier.  Where do these guys come from?

trav7777's picture

Interesting...I made a prediction in 2006 or 07 of a Japan sovereign default in 2009.  Guess I was a little early.

I've thought Japan goes down as a matter of their debt/GDP and structural imbalances for some time.  During the meat of the boom then bust, 2009 looked to be a good target and jibed with what some like Volcker were calling for sovereign currency crises in 2009.

I made predictions a few years prior about what will unhinge the financial system - the Fed will lose control of the POG.  If/when that happens, all hell will break loose.

Machiavelli's picture

Why is this a big deal? Isn't it Goldman's business plan to trade on insider information leaked by the branch of Goldman inside the Treasury?

Ripped Chunk's picture

That's what I thought?? A no-risk business plan.

If you went to the right school and belonged to the right clubs insider trading isn't a crime.

Everyone else burns for it.

aint no fortunate son's picture

This hearing is great - blankfein looks ready to melt down any second.

Anonymous's picture

Whatever it takes to steal from the taxpayer... as long as it's the taxpayer it's legal baby!

Figured the masses would have figured that out by now.

Cindy_Dies_In_The_End's picture

Why someone doesn't hit them with a "Little RICO" lawsuit and get this shit over with, is beyond me (paging Mr. Cuomo).


even if the suit goes nowhere, the discovery documents from it would tell all.


Also, I guess no one there is game for a qui tam.

Anonymous's picture

why?....b/c just like the swiss tax evasion investigation was squashed....the discovery process would reveal the names of big people and politicians...and then what?

pros's picture

Stick a fork in GS...and their friends in Washington...

they're done


but it'll take a while..

check out the Watergate timeline...years


but this is way, way bigger

Ripped Chunk's picture

That is why it will take much longer. Nixon had enemies and it still took some time. This "cartel" runs the whole fucking show.

deadhead's picture

Keep it up Tyler, keep it up.

Like water on a stone.

Keep it up.

Thank you!

Anonymous's picture


The problem here is that there is no regulator for the CDS mkt. Insider trading is not illegal, but widley done. /they arre unethical but not criminal

Arco's picture

Exactly. The deeper you dig the more unethical finds you'll find, but it'll be very hard to find anything they do illegal. Especially with the teams of lawyers on staff and in third-party firms working for them--not to mention the Treasury.

Anonymous's picture

It seems to me that this is a critical point. I'd like to hear a response from people who know more about it than me.

tom a taxpayer's picture

Just get a criminal case to a jury. No plea bargains. In this case, I believe there is a good chance a jury would deliver justice.


See link to pdf Criminal Enforcement of U.S. Securities Law, including pages 11-13 on criminal prosecutions for insider trading.



jedwards's picture

Excellent work. For fuck's sake, SEC, at least ONE of these fucking allegations has got to stick.. DO YOUR FUCKING JOBS AND DO SOMETHING!!!

Anonymous's picture

I wish,unfortunately, shit doesn't sink.

Ripped Chunk's picture

"at least ONE of these fucking allegations has got to stick"

We see now perhaps when it is too late, what we are up against.

Anonymous's picture

would anyone forward this to a congressional staff, so it can be read during the hearings today?

Orly's picture


Assetman's picture

What it means is that Goldman didn't get 100 cents on the dollar for the AIG bailout.  They got roughly 150 cents on the dollar, due to the illusory AIG bankruptcy.

Way to go, Timmy, Hank, and Uncle Ben.  Job well done!

When we look back at this, I'm convinced that people will be left wondering why Hank Paulson shouldn't be given a life sentence.

Not that I have anymore sympathy for the other two.

ghostfaceinvestah's picture

Granted Paulson was corrupt and conflicted, but at least he is gone, I have a much bigger problem with Bernanke, he is going to be re-nominated for Christ's sake.  It was the Fed that enabled the bailout of AIG, the Treasury didn't have the funds to do it.

No Fed bailout money, no Goldman bailout via AIG.

Assetman's picture

I don't disagree with any of those points, Ghost.

It's just that Paulson does not deserve to be forgotten in this mess precisely because he had a direct hand in enhancing GS' fate-- at the expense of many others.

Bernanke is, indeed, a big problem as a renomination only extends the corruption.  But since Ben has demonstrated an unwavering willingness to be a "team player" in a den of thieves, he is exactly what we're getting.

TheGoodDoctor's picture

I was kind of hoping he would be drug through the streets so that everyone would get their chance to spit on him for what he did to America.

Stuart's picture

Nah!  Would Goldman do something like that?

Stuart's picture

The world is Goldman's oyster, free to manipulate and play as they see fit.   Does not matter who the other playa is.  Goldman is as Goldman does. 

curbyourrisk's picture

Why isn't this check mate against the cash machine known as GoldmanSachs?

Cyan Lite's picture

There are many, many politicians, staffers, spouses on the Goldman Sach's payroll.  There's nothing wrong or illegal with GS hiring a congressional staffer's wife at an outrageous salary (just ask Michelle Obama).  $100-200k a year is quite cheap to protect a multi-billion dollar a year racket.



buzzsaw99's picture

Anyone who does business with GS deserves the screwing imo.

Stuart's picture

BUT it is also the unwilling taxpayer who is also getting screwed, deliberately and purposefully by Goldman.   Much the same as a few hundred thousand taxpayers with clubs can deliberately and purposeful exact their pound of flesh from each of those complicit in the original heist.

buzzsaw99's picture

Write your CONgreffman.

Anonymous's picture

Have they managed to capture government so completely that nobody at all can stand against them? No other interest in the USA can win bureaucratically in DC or what? It's unreal--it's a nightmare of post-Soviet Union scale.

buzzsaw99's picture

Have they managed to capture government so completely that nobody at all can stand against them?


trav7777's picture



They control the currency.  It matters not who makes the laws.

It took basically armed action and enduring a total bust for Andrew Jackson to throw these people out and they were back again within less than 30 years.

The system enables these people to have massive real wealth even if the currency is based on shit.  They pile up producing assets, real things, gold, whatever with their inflation dollars while an increasing share of people live paycheck to paycheck.  This is the equivalent of serfdom for most.  A lucky few ride the bubble adroitly and elevate themselves to wealth as well, but most simply get rolled by it.

Anonymous's picture

Not misplaced; just not inclusive enough.

Conspiracy was never more apt a description for this ripoff
of the American people.

As for any organization who, after realizing what Goldman Sucks has done, is now doing and will do again if their counterpartys (ies?)continues to do ANY business with them,
they should know that they will not be bailed out under any circumstances.

Anonymous's picture

Who gives a fuck anymore? The US is doomed. The banksters have won. For every piece of fraud that is discovered, three more Pieces of fraud emerge. I have closed my Chase account. I will vote Republican. The only way That this problem will end is by the total economic collapse of the US ( Run out of money).

buzzsaw99's picture

Most astute comment ever. Kudos.

Anonymous's picture

It's just my opinion. There's nobody guarding the hen house from the wolves. I see right through this sideshow.

trav7777's picture

no...no, no, no

Years ago when the GOP had a lock I said that we should eliminate the labor unions not because I dislike unions but because they are a main money funnel for the Democrap party.  Also, this was not out of support for the GOP it was a pragmatic step.

We MUST kill one of the political parties.  Right now that means vote AGAINST the GOP.  I know, I really do that this is counterintuitive, but it IS the right thing to do.  Only once one of the parties is dead will the other collapse of its own weight.

People, please, pick the weaker gazelle...don't strengthen it.  Kill it.  Whichever it is.  Vote FOR the party in power...nothing will change until and unless we have a political revolution but that cannot happen so long as we have this two-party illusion.

Just look at how much more quickly one-party rule speeds the collapse.  There is no choice now but to endure what's coming and the sooner, the better.

If we vote the GOP back into power they will simply do the same things because they ARE establishment just as surely as Democraps are.  Repugnicons do not stand for change or anything of the kind, they stand for Repugnicons getting paid.  They will simply perpetuate the mess while lining their own pockets.  If this collapse drags on, they will succeed in migrating more and more of your money into their pockets.  When the end does come, you'll be destitute.  Let's have the collapse NOW before our society and infrastructure so degrades due to neglect that there is no road out.

TheGoodDoctor's picture

Well, why not support Ron Paul?

Anonymous's picture

excuse me, HST would never recommend a GOP candidate NEVER.

Anonymous's picture

Yea, vote Republican so we get another Bush, who appoints another Paulson. That'll fix it!

seventree's picture

Vote any way you want, once in office the winners will be introduced to reality and toe the line. The federal government and anyone who is part of it derives power from the ability to spend without limit, and at this point that means perpetuating the schemes that keep the phoney-money maching going. They are riding a tiger and there is no getting off at this point.

Ripped Chunk's picture


Many good people have tried political office only to quit in disgust (Bill Bradley for one)

Thinking that party politics means anything is ludicrous.  the daily show of Dem vs Repub, Liberal vs Conservative is the oldest crowd control technique know to "civilization": Divide the masses, control the masses.

Please wake up.