And Paulson was CEO at the time and knew all about it.  More truth about lack of Fed transparency.  This is not entirely new if you’ve been following the work we’ve published from Janet Tavakoli, who is quoted extensively in the article below.  Still, it underscores some of the more arcane points and delves into new territory with discussion of CDO substitutions.  Easy to follow summary piece from Bloomberg’s Richard Teitelbaum.

Here’s what you need to take from this: Goldman put together crappy CDO’s, bought Credit Default Swap protection (insurance) from AIG, pushed AIG into bankruptcy by making claims on the insurance, and then got paid — not by AIG — but by the TAXPAYER.

Oh, and the guy who tried to cover all this up? Barack Obama picked him to be your Treasury Secretary. Is this a great country, or what?

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