No, you must be mistaken. According to this inteview, nobody in Congress knew about this until about a week ago.
http://freerepublic.com/focus/f-news/2208720/posts
Since he only learned about it a week ago I guess he's just stupid. He just signs bills into law without knowing what he signing. He even accepts $101,000 from the company but still knows nothing about them.
Yes they knew, and yes they knew they had LEGAL contracts.
Allow government to break LEGAL contracts, destroy freedom.
The real outrage should be directed at the government causing AIG to fail with their home loan policy.