Vive le free press, in this case the New York Times:

Although it was not widely known, Goldman, a Wall Street stalwart that had seemed immune to its rivals’ woes, was A.I.G.’s largest trading partner, according to six people close to the insurer who requested anonymity because of confidentiality agreements. A collapse of the insurer threatened to leave a hole of as much as $20 billion in Goldman’s side, several of these people said.


Few knew of Goldman’s exposure to A.I.G. When the insurer’s flameout became public, David A. Viniar, Goldman’s chief financial officer, assured analysts on Sept. 16 that his firm’s exposure was “immaterial,” a view that the company reiterated in an interview.

It's almost enough to make one doubt the bona fides of, well, most of those intimately involved in this catastrophe. But then again, how one earth could a little thing like this

cause any problems whatsoever to AIG's number one trading partner?

Poor old put upon Lucas van Praag, the Goldman spokesman cited in the piece, knew all the time the famous Lehman-style "active hedging strategies" had the whole thing under complete control at all times.

Just like Mr Buffet.

Bookmark and Share


Related Posts with Thumbnails