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Guest Post: Goldman's Undisclosed Role in AIG's Distress

Tyler Durden's picture
Submitted by Tyler Durden on 11/10/2009 09:14 -0500



Submitted by Janet Tavakoli of Tavakoli Structured Finance

 

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by m.g. turner
on Tue, 11/10/2009 - 09:48
#125739

What kind of con game is it where the people who get screwed are not even involved in the game? Only in America, land of the free (lunch) and home of the brave (protected few). Will we ever learn?

by BobPaulson
on Tue, 11/10/2009 - 09:57
#125744

No outrage yet. Like ENRON, too complicated for the proles to get mad about.

by Anonymous
on Tue, 11/10/2009 - 11:50
#125913

In the late 1960's, John Lennon claimed that the Beatles were more popular than Jesus. There was a huge public outcry, especially in the U.S.

The Beatles never played in the U.K. again, and shortly thereafter went their separate ways. Something about the concept of "too big..."

Perhaps the squid has thus planted yet another seed for its own destruction.

by Fish Gone Bad
on Tue, 11/10/2009 - 09:58
#125745

If Goldman Sachs is doing God's work, then God hates us all.

by Anonymous
on Tue, 11/10/2009 - 10:37
#125784

He who has the GOLD, defines GOD for the rest of us.

by VegasBD
on Tue, 11/10/2009 - 16:47
#126388

I am God.

You cannot prove I am not. Therefore, I am.

by MinnesotaNice
on Tue, 11/10/2009 - 10:13
#125760

I think that there are no good words left in the English language to describe Goldman Sachs... perhaps someone knows a few choice words in another language that could add some depth to the description of Goldman Sachs' true character. 

by svendthrift
on Tue, 11/10/2009 - 10:23
#125765

Sure, we have appropriate vocab: Welfare Queen.

 

by m.g. turner
on Tue, 11/10/2009 - 10:24
#125768

......brutti stronzi, pezzi di merda, facce da culo, teste di cazzo,  mafiosi, camorristi, etc., etc.,

scusate.

by Careless Whisper
on Tue, 11/10/2009 - 11:15
#125836

che cazzo? why are these "banks" and "insurance companies" hehe allowed to trade and underwrite derivatives? and do it with taxplaya backstop? anyone? anyone?

 

by mickey the piker
on Tue, 11/10/2009 - 17:12
#126426

il loro furbo proprio

by Anonymous
on Tue, 11/10/2009 - 10:13
#125761

Janet's right, of course, but I'm not sure I see any information in her article that hasn't been reported before (other than her personal contacts with GS & AIG--which just reinforce the known).

...just more of the same old crap from the TBTF....

by Anonymous
on Tue, 11/10/2009 - 14:40
#126174

I disagree, this piece cites specific examples in support of the claims that have been mentioned previously.

by Zro
on Tue, 11/10/2009 - 10:34
#125778

Anyway to get a zerohedge-hosted link?

by Anonymous
on Tue, 11/10/2009 - 10:35
#125781

Remember Lloyd is doing God's work. Actually, if Satan went to a headhunter, I am sure he would be placed with Goldman as the perfect fit. Lloyd, the road to HELL is paved with good intentions. (Yours aren't even good)

by JohnKing
on Tue, 11/10/2009 - 10:40
#125788

Thank you Janet.

Here and everywhere else we get buried in charts, data, etc. but here is the one thing we need more of: naming the culprits. Taking the abstract and turning into "real" requires names and numbers. I can't think of any other crime reporting where they simply describe crimes but nary a word about the suspects. Thanks again, keep it up.

 

 

by SWRichmond
on Tue, 11/10/2009 - 10:42
#125791

+1

by SWRichmond
on Tue, 11/10/2009 - 10:43
#125793

Isn't basis arbitrage really just betting that the ratings are crap?  Smoking gun?

by Anonymous
on Tue, 11/10/2009 - 10:49
#125801

Tyler,
What is the end game here? What course of action do you propose the government/regulators take with GS?
It seems the time has come to declare the remedy.
Thanks

by Anonymous
on Tue, 11/10/2009 - 10:56
#125814

There are only 90 countries whose GDP is larger than this year's Goldman Sachs' Bonus pool; fully 100 countries GDPs are smaller.

by Anonymous
on Tue, 11/10/2009 - 11:05
#125821

If God's work is hurricanes, tornadoes, floods, earthquakes, plagues and epidemics (aka Acts of God), then yes, Goldman Sachs is clearly doing God's work.

by A Man without Q...
on Tue, 11/10/2009 - 11:14
#125834

I would dearly love to know which entity was dumb enough and big enough to sell GS protection on AIG in the size they needed.  Whoever this was, they owe a huge debt of thanks to the Treasury, especially Paulson.  

 

My suspicion is it was a SWF, but I don't have any evidence...

by Anonymous
on Tue, 11/10/2009 - 11:25
#125858

SWF seeks non-smoking teddy bear with beard and printing presses for good times, no commitments.

by tip e. canoe
on Tue, 11/10/2009 - 11:47
#125904

i feel you getting warmer

by Anonymous
on Tue, 11/10/2009 - 12:30
#125965

What is the remedy?

by bruiserND
on Tue, 11/10/2009 - 12:49
#125992

For clarification Janet should have also mentioned with her article.

Putnam 2002- 01 was a Marsh Mc Lennon product and the mid September meltdown was triggered (among many other things) by Marsh Mc Lennon CP "breaking the buck".

This fact allowed Hank Paulson to extort & black mail executive branch and legislative branch leadership into an immediate payoff of $787 bilion aka the "Greenspan Put"

http://www.prnewswire.co.uk/cgi/news/release?id=216777

 rather than having any sort of normal appropriations hearings 

We also should look at fmr GSA Partner & fmr Secy of the Treasury Robert Rubin as a GSA plant on the Citi Bank board insisting that Thomas G. Maheres running the Citi Bank trading desk accelerate is credit default swap writing activities to ultimately destroy that institution.

Further it should be included in this paper that GSA was "given" a leg up on all its other competition by being exempted from FAS 157 mark to market accounting rules , those very same rules that were hyper accelerating all the other GSA competitors{except JPM} collateral losses.

Janet, you still owe me an autograph on my book

by tip e. canoe
on Wed, 11/11/2009 - 10:10
#127016

if you have hard evidence on Marsh & Mac, you would all of us an incredible service by posting it.

by UltimateRuler
on Tue, 11/10/2009 - 14:57
#126203

Goldman is the vessel of the Fed. What makes anyone think they'd ever be dismantled?

by thewhigs
on Tue, 11/10/2009 - 15:23
#126251

Isn't there ANYTHING ANYONE could do about this? There HAS to be fraud by GS, Paulson and Geithner (maybe even Congress) somewhere along the lines here. The people (read: tax payers and bagholders) have a right to know. This isn't national security.

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