Lieber asks all the hard questions - you know, the ones the answers to which are really, really embarassing. For example, where exactly has the $7 or $8 trillion from the Fed gone to?
In mid-September, when it was on the ropes, AIG received an astonishing $85 billion emergency line of credit from the Fed. Soon, that was supplemented by another $67 billion. Much of that money, to use the government's euphemism, has already been "drawn down." Shamefully, neither Washington nor AIG will explain where the billions went. But the answer is increasingly clear: It went to counterparties who bought derivatives from Cassano's shop in London.
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