From Naked Capitalism (and indeed, it doesn’t get much more naked, greedy, and self-serving than this.)
Gretchen Morgenson in the New York Times reports that Goldman and no other Wall Street firm was involved in the AIG rescue talks and an AIG failure would have created a hole as big as $20 billion in Goldman’s balance sheet.
This is special dealing, pure and simple. Even if AIG needed to be salvaged (there was considerable agreement on this point), having Goldman deeply involved in the process is cronyism. But that’s been a staple of this Administration.
Indeed. the government only really got concerned about the crisis when Goldman stock started getting hammered hard and was dropping like a stone. That’s when they intervened.