New York Federal Reserve

AIG Bombshell - Goldman Sachs was willing to take a hair cut on CDS payouts

Wow. I'm getting more than a little CT (conspiracy theory) on this story it has so many twists and turns. Blackrock supposedly released documents which prove Goldman Sachs was willing to tear up contracts, in other words take a hair cut on the back door bail out.

Bloomberg:

A month before the September 2008 rescue, Goldman Sachs approached AIG about tearing up contracts protecting the bank against losses on collateralized debt obligations, or holdings backed by mortgages, according to a BlackRock Inc. presentation dated Nov. 5, 2008. Goldman Sachs was the only counterparty willing to cancel the credit-default swaps and bear the risk of further CDO losses, provided that AIG make payments based on the bank’s larger-than-average estimate of market declines.

New York Fed Subpoenaed!

The House Oversight Committee will issue a Subpoena to the New York Federal Reserve due to it's 100% payout of AIG Credit Default Swaps and trying to stop AIG from disclosing this via their 10-k release.

“To help the committee’s investigation of payments made by AIG to its counterparties, I am issuing a subpoena today to the Federal Reserve Bank of New York,” Edolphus Towns, the New York Democrat who runs the Oversight and Government Reform Committee, said in an e-mailed statement. “This subpoena will provide the committee with documents that will shed light on how and why taxpayer dollars were used for a backdoor bailout.”