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Wednesday, January 27, 2010

So much for the 2018 "lockbox"

Here's what AIG gave us. The only things not redacted are the CUSIPs in the Blackrock reported.
AIG 8K CDO filing
And the un-redacted version, that was supposedly locked up until 2018.  Notice how Goldman screwed Wachovia with Davis Square CDOs and that SocGen had billions of dreck from Goldman that they had to be bailed out with also.

Make no mistake--the bailout of AIG was a bailout of Goldman Sachs.

And make no mistake. Goldman knew who had their worthless sh*t, and because they packaged the dreck!
Goldman Sachs CDO theft from the taxpayer

2 comments :

Anonymous said...

You're wrong on Davis Square. Trust Company of the West TCW was the manager-it wasn't Goldman Sachs

Palmoni said...

I know I'm not an "expert" on CDOs but what I said stands. TCW was the manager, but Goldman Sachs was the underwriter. Its just that the unredacted schedule shows TCW. So let me back up what I said yesterday, by deferring to the the so-called expert of CDOs Janet Tavakoli. I gave the Cliff Notes version

http://www.tavakolistructuredfinance.com/DS4.pdf

You can see the assets in Davis Square--It was underwritten by Goldman Sachs. The manager was TCW. That means Goldman put in the dreck that went sour.

Every piece of sh*t that Goldman had on their books was pumped into this cesspool. It's full of garbage. And that's only what we see then!

She had a story in the Huffington Post today.

http://www.huffingtonpost.com/janet-tavakoli/congress-exposes-potentia_b_440361.html

Her conclusion:

One would need similar snapshots of all the CDOs to figure out who did what to whom. The fact that the Fed and SEC suppressed potentially explosive facts is bad enough, but the delay in making the information public has given interested parties a window of opportunity to cover their tracks by dumping the worst of the assets, thus hiding them forever from public view.

Suppressing the details of AIG's trades made it easier for AIG's counterparties to cover-up profiteering and then exploit public funds. If details of these trades had been made public in September 2008, a reasonable negotiator would have demanded that the billions of dollars that had been extracted from AIG (including the $7.5 billion Goldman extracted by then) should be recharacterized as a loan.

Instead, the Fed gifted tens of billions of dollars to banks that supplied the financing for bad loans that damaged the U.S. economy. More than that, these banks engaged in suspect deals that covered up losses and allowed them to continue to report apparent "profits" and pay inflated bonuses. Meanwhile, their securitization activities continued to harm the economy during a period at which the United States was at war.

Goldman is not solely responsible, but it had a large role in AIG's crisis and a unique position of conflicted interest and influence over the terms of the bailout. Now that the crisis is over, this issue should be reopened, and billions in collateral should be clawed back to pay down public debt, before Goldman Sachs pays more than $16 billion in taxpayer subsidized bonuses to its employees.

But thanks for bringing the point up. It means someone at least read it and tried figuring out what I meant by it!!