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The Masked Tulip

Treasury Considered Letting Aig File For Bankruptcy

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http://www.foxbusiness.com/story/markets/i...ile-bankruptcy/

In late January and early February, government officials considered allowing AIG to file for bankruptcy as they struggled with whether to provide additional support for the failed insurance giant, according to documents obtained by FOX Business.

The documents consist of e-mails about AIG between officials at the Treasury Department and the Federal Reserve, as well as with two attorneys from Davis Polk & Wardwell LLP retained by them, Marshall Huebner and Ethan James.

In an e-mail dated Jan. 29, Sarah Dahlgren, a senior vice president with the Federal Reserve Bank of New York, wrote a Treasury counselor, Stephen Albrecht, “Steve – I didn’t see your name on the invite list and wanted to make sure that you knew that Marshall and Ethan were going to lead a discussion tomorrow on bankruptcy.â€

“Yes, I’ll be on the call,†Albrecht responded, according to the document.

In another e-mail dated Feb.5, the subject line reads, “Conf call re AIG bankruptcy options.â€

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I think we knew this, although it's interesting to see it confirmed.

They bottled it after the market panicked over Lehmans.

Or, according to the Rolling Stone article posted yesterday, the ex Goldman boys at the Fed saved AIG so that AIG could pay out on the CDSs that Goldman took out - tens of billions apparently - on their own subprime mortgages hence not only saving Goldman but making Goldman the most powerful bank in the World?

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Or, according to the Rolling Stone article posted yesterday, the ex Goldman boys at the Fed saved AIG so that AIG could pay out on the CDSs that Goldman took out - tens of billions apparently - on their own subprime mortgages hence not only saving Goldman but making Goldman the most powerful bank in the World?

I didn't see that article, but I don't think they were thinking about Goldensacks at the time.. they were more concerned about the imminent implosion of the entire financial system at that time IMHO. If GS took out a load of CDSs just before they saved it then it might be they got wind and worked out how to do well off the back of it.. but I don't think it was government based conspiracy to make GS a super bank (if that's what the article was implying).

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I don't think it was government based conspiracy to make GS a super bank (if that's what the article was implying).

Clearly not, given that Hank Paulson was Treasury secretary at the time. Coup d'etat.

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  • 404 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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