Cash was used to cover collateral payments, wind-down derivative contracts
American International Group said over the weekend it had paid over $100 billion of its bailout funds to U.S. states and international banks including Goldman Sachs, Deutsche Bank and Societe Generale.The cash was used to cover collateral payments, cancel derivative contracts and meet obligations at its securities lending business after the firm had to be bailed out last year.
Most of the major U.S. and European banks were represented on the list, but AIG revealed that Goldman Sachs was the biggest single beneficiary from the payments, receiving $12.9 billion....MORE
September 28, 2008HT: 1440 Wall Street who also points us to a Market Movers post:
Goldman Sachs Group Inc rejected as "seriously misleading" a published report on Sunday that said the Wall Street bank had as much as $20 billion of exposure to the troubled insurance giant American International Group Inc....MORE
...In any event, so many of the counterparties on this list had hedged their AIG exposure that it's massively oversimplifying matters to conclude that even the banks with the biggest exposures on the second appendix are the ones which effectively got the biggest government bailout. It's not nearly as simple as that -- and AIG should be much more upfront about such matters than it is being with this release.