This is not without complexity. Let us go over what we know….
AIG has said they were negotiating “tear-ups” with counterparties at 50 cents on the dollar before the NY Fed told them to ‘stand down’ in negotiations with counterparties. ‘Stand down’ was the exact language from emails unearthed last week by Hugh Son of Bloomberg.
Goldman openly admits that they were willing to tear up contracts with AIG for the ‘right price,’ as you will see below.
But Goldman CEO Lloyd Blankfein told Angelides and the FCIC panel last week that they were ‘never asked’ by the the New York Fed negotiators, working on behalf of AIG, to accept any haircut, or less than 100 cents on the dollar.
The only logical conclusion is the following — somebody’s lying.
Goldman Sachs Linked to AIG Implosion…?