Goldman (Sachs) rejected offers to settle AIG trades at discount

[sabra]

Source: MarketWatch

NEW YORK (MarketWatch) -- Goldman Sachs Chief Financial officer David Viniar said Friday that the firm rejected overtures from American International Group to settle trades with the troubled insurer at a discount, instead holding the firm to the letter of its contracts. "We don't think we did anything wrong. We had commercial terms. It is our responsibility to our shareholders to make sure that we are protecting ourselves. That's why we enter into these contracts. That's why we have terms in the first place, to make sure that we are protected," Viniar said. When the CFO was asked if Goldman felt any guilt about its possible contribution to AIG's collapse, Viniar said, "All we did was call for what was due to us under the contracts. So you know, I don't think there's any guilt whatsoever."

Read more: http://www.marketwatch.com/news/story/Goldman-rejected-offers-settle-AIG/story.aspx?guid={9AA8334F-BFA8-4096-8EC0-F9D0EF1D3357}

[depakid]

1. "We don't think we did anything wrong."

Pretty well sums it up.

[Howardx]

2. "don't think there's any guilt whatsoever."

thats because he doesnt know what guilt is.

[UpInArms]

6. that would require humanity and a conscience

n/t

[DCKit]

3. If HE was willing to allow AIG to fail, why should we be concerned whether they live or die? n/t

[tbyg52]

13. In a perfect world, we wouldn't. But Goldman knew we'd catch that baby. nt

[marketcrazy1]

4. of course they did

they knew the government ( taxpayers ) would stand behind AIG so they took all they could get. I am sure that 12 billion will be help them show a profit for the 1st quarter when they report next month, share holders will be thrilled!!!! GS should send thank you cards to every American for this gift!!

[UpInArms]

5. Goldman CFO feels no guilt over AIG payments

Source: Reuters

NEW YORK, March 20 (Reuters) - Goldman Sachs Group Inc (GS.N) insists it did nothing wrong when it accepted payments to close out trades with American International Group (AIG.N) before and after the insurer was rescued by the U.S. government last September, Chief Financial Officer David Viniar told reporters on Friday.

Goldman answered reporters' questions on a conference call seeking to clear up what it called "misperceptions" about its trading relationship with AIG. The insurer since mid-September received as much as $180 billion in government support to avoid collapse stemming from its exposure to crumbling debt markets.

The bank has come under fire amid revelations that $90 billion of those funds were funneled quickly to AIG's trading counterparties, which were bought out at nearly face value.

"We don't think we did anything wrong," Viniar said. "We had commercial terms. It is our responsibility to our shareholders to make sure that we are protecting ourselves."

Goldman was the largest single beneficiary, receiving $12.9 billion between mid-September and the end of December.

Read more: http://www.reuters.com/article/bondsNews/idUSN2050345420090320

[Supersedeas]

17. but, what on earth is that smell!?!

[aquart]

7. Can we please hang Paulson now?

[Roland99]

8. iow, "We got our money...fuck the rest of y'all!"

[mr_smith007]

9. He said

"We don't think we did anything wrong. We had commercial terms.." as if these were just ordinary average times. The fact that we are in a financial meltdown and that those commercial terms are being met by the taxpayers escapes this greedy son of a bitch. Attitudes like this make me physically ill.

[Gin]

10. we are paying all of these at face value......there is no risk to the investor...

just the stupid sheeple...AKA the taxpayers!

[No Elephants]

11. No one here is likely to want to hear this, but Bushco should never have let

Lehman Bros. fail.

And Bushco should have dealt with AIG and those AIG had dealt with much sooner.

Even forcing companies like GS to accept 75 cents on the dollar would have meant huge savings of taxpayer dollars.

My guess is that Bushco first tried to keep this under wraps until Bush got out of office, realized that wasn't happening, then tried to keep it from hitting the fan before the election. That's just a guess, of course.

Whatever the case, one thing is certain: By the time that they finally surfaced the black hole that the economy had become, it was much too late to do much more than was done.

Of course, that ignores the 20 or 30 years of mistakes that allowed this whole scenario in the first place, but I've decided to "look forward."

[bluesmail]

12. Sanctity of the contract. Zero tolerance rule law whatever.

They sure picked the right word for a depression. Depression Depression

[NeoConsSuck]

14. Goldman Sachs, Welfare Queen

Wall Street's most storied firm is surviving on taxpayer dollars.

http://www.newsweek.com/id/190111

Interesting reading.

[Kolesar]

15. Daniel Gross' story at Slate.com with the links to the supporting documentation

http://www.slate.com/id/2214076/

[Oak2004]

16. And my, what a coincidence!

The bailout was designed by Goldman Sachs alumni, with the current Goldman Sachs head sitting in on all the backroom meetings.

Coincidences like that are just, oh, so darn coincidental.

(I suspect that many of our current financial problems could be solved with a simple balance transfer. The Goldman Sachs execs need to be withdrawn from Treasury and deposited in the nearest Federal penitentiary.)