The AIG bailout turns into an real ugly episode as ex Goldman CEO secretary Paulson saved especially Goldman as they received up to 18 bil from AIG settlements of trades. In that light it is outrages that Goldman payed any bonus since they were saved by taxpayers and would be bankrupt otherwise. The same is true for any of the recipients of AIG money as the so called counter party risk is a substantial part of the risk taking business in the industry.
Not to mention that any cent of bonus paid to any AIG employee in the trading unit is outrages. This whole affair turns out to be unbearable and in case of AIG those losses paid out will never return to taxpayers. That makes the whole thing a big charade as the BUSh administration vetoed children's health care worth of 50 bil. but spent easily 100 bil for moron traders bonus payments.
Excerpt
Through three separate types of transactions, Goldman received an aggregate $12.9 billion. Among European banks, SocGen was the biggest recipient at $11.9 billion, Deutsche got $11.8 billion and Barclays was paid $8.5 billion, Reuters reported.
Using the loan from the government AIG paid $22.4 billion in collateral to counterparties of credit default swaps written by AIG Financial Products (AIGFP). Those payments were made between September 16, 2008 and December 31, 2008, and included $4.1 billion to Societe Generale, $2.6 billion to Deutsche Bank and $2.5 billion to Goldman Sachs.
Another $43.7 billion went to pay counterparties of AIG's securities lending operations. The biggest recipients of those funds included Barclays which received a $7 billion payment, Deutsche Bank which received $6.4 billion and BNP Paribas and Goldman Sachs which received $4.9 and $4.8 billion respectively.
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