I have to take issue with William Cohan’s Op-Ed, How Goldman Killed A.I.G.
First off, let me start out by saying that these are two bad actors; there are no “good guys” here. Second, let me remind the reader that AIG under-wrote $3 trillion worth of derivatives, a massive high-risk exposure — and collected $3 billion (10 bps) in fees on their exposure.
Tom Savage, President, the head of AIG’s Financial Products, it free money: “The models suggested that the risk was so remote that the fees were almost free money. Just put it on your books and enjoy the money.”
Gee, how could that go bad?
Thus, looking at what was done, I think its more accurate to say that AIG committed suicide. Goldman was merely one of the many Bruteses that thrust their daggers into Cesear.
Continue here:Did Goldman Sachs Kill AIG ? | Barry Ritholtz, The Big Picture.
