They didn't need to audit anything, they are perfectly capable of reading AIG's financial statements and they knew its paying capacity. They value companies for a living and do it a darn sight better than you do. Uh, yeah, sure. They did such a great job that they completely missed the fact that if the economy went south, AIG would need $185 billion in government money to meet its obligations. And if the government refused to go through with the bailout, GS could go the way of Lehman. Yeah, that is world-class risk management. /sarcasm
You are the most obtuse weasel I have ever seen posting on FR, and that is saying something. Companies that screwed up the financial system so badly to where the Fedgov has put out $4.7 trillion are paragons of virtue and capitalism, and I'm some ungrateful slob for pointing that out.
Go sell this shinola to someone stupid enough to buy it. In case you haven't noticed, very few on FR will.
The AIG bailout was not necessary for Goldman to stay alive, any more than anyone else at least. It was necessary for the treasury to stay alive and the banking system to remain open. It is true that a complete failure of the banking system would have taken down Goldman too, just as it is true that if the US air force nuked lower Manhattan it hurt Goldman. However, this does not suffice to prove that the sole reason the US air force has not nuked lower Manhattan is a grand Jewish conspiracy, nor that nuking lower Manhattan is a clear duty of the US air force and ought to be tried tomorrow.
Your policy recommendations are that stupid. The comparison is quite exact.