The Mudcat Café TM
Thread #114861   Message #2752074
Posted By: Q (Frank Staplin)
24-Oct-09 - 09:03 PM
Thread Name: BS: Kucinich on the Bailout - interesting!
Subject: RE: BS: Kucinich on the Bailout - interesting!
You mis-state what took place.
Asked why Goldman Sachs took $12.9 billion of taxpayer money if it was collateralized and hedged on its AIG positions, Michael DuVally (Goldman spokesman) said it was because AIG was not allowed to fail, so Goldman did not get the money from hedges that would have paid out if the insurer had collapsed. And, he said, under the terms of its contracts with AIG, Goldman was entitled to collateral.

The argument against this position is that these companies (e. g., Goldman et al.) should have been made to share some of these losses resulting from AIG's near collapse.
(Reuters and other reports).
Failure to pay the French and German banks would lead to a diplomatic upset.

There will be payments to other banks including one or more in Canada.