Posted on 03/21/2009 11:48:29 AM PDT by jimbo123
Goldman Sachs Group rejected overtures from American International Group to settle trades with the troubled insurer at a discount, instead holding the company to the letter of its contracts, the investment bank's chief financial officer said Friday.
CFO David Viniar also said that Chief Executive Lloyd Blankfein had no meetings with former Treasury Secretary Henry Paulson about AIG.
-snip-
Viniar was asked if Goldman Sachs felt any guilt about its possible contribution to AIG's collapse.
"All we did was call for what was due to us under the contracts. So you know, I don't think there's any guilt whatsoever," he said.
"We don't think we did anything wrong," Viniar continued, explaining that "we had commercial terms. It is our responsibility to our shareholders to make sure that we are protecting ourselves. That's why we enter into these contracts. That's why we have terms in the first place, to make sure that we are protected."
As part of that protection, Goldman also apparently made trades that allowed it to profit from deterioration in AIG's financial strength -- likely based on those collateral calls.
Viniar acknowledged Friday that Goldman profited from AIG's woes. When asked if the firm made gains over the course of AIG's deterioration, he said: "Net-net, I would think we had a gain over the time.
(Excerpt) Read more at marketwatch.com ...
“Ummmm...so it would be fair to say that someone at Goldman made big bonuses over said trades?”
Hey, just asking.../s
Goldman was the first to notice that AIG had constructed a house of cards. It was Goldman's demand for collateral that prompted AIG's auditors to look more closely at the books and discover the house of cards themselves. I don't blame Goldman in the slightest for trying to protect themselves when they realized AIG was a house of cards.
Shouldn’t they be taxed 90% for their profits? I mean, now that the camel’s nose is in the tent...
Would that be considered insider trading?
Law of the jungle, except Goldman had help by having the Treasury Dept in their pocket. And as a bonus, Goldman was able to kill Lehman Brothers and Merrill Lynch at the same time.
Late in 2007 Goldman paid out $12.1 billion (up 23%) in bonuses.
Blankfein made $68.5 million, Winkelried and Cohn got $67.5 million, and Viniar got $57.5 million.
And if Goldman had had no exposure under those contracts, that $6B of pass-through payments would have been completely unnecessary, I take it.
imo goldman sachs is extremely shaky. seems like they pull too many strings and are too politically connected.
Corporate Facism takes over America
BLANKFEIN, LLOYD
GARDEN CITY,NY 11530 GOLDMAN SACHS/INVESTMENT BANKER 11/27/07 $28,500 Democratic Senatorial Campaign Cmte (D)
BLANKFEIN, LLOYD C
NEW YORK,NY 10004 GOLDMAN SACHS & CO./INVESTMENT BANK 2/21/07 $2,300 Clinton, Hillary (D)
BLANKFEIN, LLOYD C
NEW YORK,NY 10028 GOLDMAN SACHS & CO/INVESTMENT BANKE 2/21/07 $2,300 Clinton, Hillary (D)
BLANKFEIN, LLOYD C MR
NEW YORK,NY 10028 GOLDMAN SACHS/CHAIRMAN AND CEO 5/10/07 $2,300 Dodd, Chris (D)
Pffft! Contracts? We don't need no stinkin' contracts!
This is why we have bankruptcy courts.
And change your topic as well.
GOldman didn’t kill AIG.
AIG killed themselves.
Getting interesting...
fyi
All we did was call for what was due to us under the contracts. So you know, I don’t think there’s any guilt whatsoever,” he said.
Goldman made collateral calls against AIG while simulaneously shorting AIG stock to destroy their capital position.
AIG should have filed bankruptcy and then Goldman would have been forced to settle the contracts at 3-5 cents on the dollar. Instead, Obama bailed out AIG and your/our tax dollars are buying out Goldman’s contracts with AIG at $1 = $1.
If you work for Goldman, it’s a great deal. If you’re a taxpayer, Goldman appreciates your contribution to their bonus pool on behalf of AIG.
Gee where are the pitchforks for these thieves? I’ve had some professional experience with some Goldman Alums...not pretty!
http://www.opensecrets.org/orgs/toprecips.php?id=D000000085
Heavy Hitters
Goldman Sachs: Recipients
Select Cycle: 2008
Money to Congress: 2008 Cycle
Dems: Dems: $2,497,544 $2,497,544
Repubs: Repubs: $769,971 $769,971
Others: Independents: $0 $0
Incumbents: Total to Members: $2,929,221 $2,929,221
Non-Incumbents: Total to All Candidates: $338,294 $338,294
House # of Members Average Contribution Total Contributions
Democrats 102 $4,590 $468,200
Republicans 66 $3,800 $250,851
Independents 0 $0 $0
TOTAL 168 $4,280 $719,051
The US House of Representatives has 435 members.
Senate # of Members Average Contribution Total Contributions
Democrats 23 $75,311 $1,732,175
Republicans 25 $19,119 $477,995
Independents 0 $0 $0
TOTAL 48 $46,045 $2,210,170
The US Senate has 100 members.
Top Recipients
Senate Obama, Barack $983,245
Senate Clinton, Hillary $410,350
Presidential Romney, Mitt $234,275
Senate McCain, John $230,095
House Himes, Jim $150,498
Senate Dodd, Chris $110,000
Presidential Giuliani, Rudolph W $109,450
Presidential Edwards, John $68,750
Senate Specter, Arlen $47,600
House Emanuel, Rahm $37,750
Senate Sununu, John E $31,400
Senate Reed, Jack $30,100
House Skelly, Michael Peter $26,171
Senate Baucus, Max $26,000
Senate Harkin, Tom $24,580
Senate Lautenberg, Frank R $24,100
Senate Collins, Susan M $21,900
Senate Warner, Mark $21,800
Senate Landrieu, Mary L $20,700
House Gillibrand, Kirsten E $20,500
See all recipients
http://www.opensecrets.org/orgs/recips.php?id=D000000085
Chambliss, Saxby (R-GA) Senate $20,100
Durbin, Dick (D-IL) Senate $19,500
Coleman, Norm (R-MN) Senate $19,200
Rangel, Charles B (D-NY) House $18,100
McConnell, Mitch (R-KY) Senate $17,500
Hoyer, Steny H (D-MD) House $17,300
Kanjorski, Paul E (D-PA) House $16,100
Kirk, Mark (R-IL) House $15,700
Maloney, Carolyn B (D-NY) House $14,600
Cote, Adam (D-ME) House $14,000
Biden, Joseph R Jr (D-DE) Senate $13,800
Shays, Christopher (R-CT) House $13,800
Rockefeller, Jay (D-WV) Senate $13,400
Cornyn, John (R-TX) Senate $13,100
Pryor, Mark (D-AR) Senate $12,600
Boehner, John (R-OH) House $12,000
Roberts, Pat (R-KS) Senate $11,500
Pelosi, Nancy (D-CA) House $11,000
Udall, Tom (D-NM) House $10,850
Blunt, Roy (R-MO) House $10,500
Dole, Elizabeth (R-NC) Senate $10,500
Udall, Mark (D-CO) House $10,200
Walberg, Tim (R-MI) House $10,100
Bachus, Spencer (R-AL) House $10,000
Clyburn, James E (D-SC) House $10,000
Dingell, John D (D-MI) House $10,000
Frank, Barney (D-MA) House $10,000
Johnson, Tim (D-SD) Senate $10,000
Menendez, Robert (D-NJ) Senate $10,000
Castle, Michael N (R-DE) House $9,600
Capito, Shelley Moore (R-WV) House $9,500
Allen, Tom (D-ME) House $9,400
Smith, Gordon H (R-OR) Senate $9,400
Crapo, Mike (R-ID) Senate $9,200
Kuhl, John R Jr (R-NY) House $9,000
Enzi, Mike (R-WY) Senate $8,600
Richardson, Bill (D) Pres $8,600
Crowley, Joseph (D-NY) House $8,500
Cantor, Eric (R-VA) House $8,000
Murphy, Chris (D-CT) House $7,700
Schwartz, Allyson (D-PA) House $7,600
Maffei, Dan (D-NY) House $7,500
McCrery, Jim (R-LA) House $7,500
Fitz-Gerald, Joan (D-CO) House $7,400
Murphy, Patrick J (D-PA) House $7,100
McCaul, Michael (R-TX) House $6,900
Becerra, Xavier (D-CA) House $6,600
Biggert, Judy (R-IL) House $6,600
Roskam, Peter (R-IL) House $6,600
Sullivan, Sean Patrick (R-CT) House $6,600
Miller, George (D-CA) House $6,500
Neal, Jim (D-NC) Senate $6,100
Cazayoux, Donald J (D-LA) House $6,000
Foster, Bill (D-IL) House $6,000
Johanns, Michael O (R-NE) Senate $6,000
Lowey, Nita M (D-NY) House $6,000
Reid, Harry (D-NV) Senate $6,000
Lalor, Kieran Michael (R-NY) House $5,650
Salazar, Alfredo (3-PR) $5,600
Treadwell, Sandy (R-NY) House $5,600
Etheridge, Bob (D-NC) House $5,500
Levin, Carl (D-MI) Senate $5,500
Nadler, Jerrold (D-NY) House $5,500
Neugebauer, Randy (R-TX) House $5,500
Wexler, Robert (D-FL) House $5,500
Shafroth, William G (D-CO) House $5,300
Martin, James Francis (D-GA) Senate $5,100
Minnick, Walter Clifford (D-ID) House $5,100
Andrews, Robert E (D-NJ) House $5,000
Arcuri, Michael (D-NY) House $5,000
Camp, Dave (R-MI) House $5,000
DeLauro, Rosa L (D-CT) House $5,000
Hall, John (D-NY) House $5,000
Kerry, John (D-MA) Senate $5,000
McMahon, Michael E (D-NY) House $5,000
Moore, Dennis (D-KS) House $5,000
Peterson, Collin C (D-MN) House $5,000
Putnam, Adam H (R-FL) House $5,000
Reynolds, Tom (R-NY) House $5,000
Scott, David (D-GA) House $5,000
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