Wednesday, August 19, 2009

Another reason why Goldman wanted an AIG bailout (GS)

Goldman Sachs Group Inc. (NYSE:GS) had plenty of reasons to want to see the federal government bail out American International Group Inc. (NYSE:AIG). While the $13 billion the troubled insurer shelled out is certainly at the top of the list, there are others. For instance, the bank was involved in one of the largest commercial lease real estate deals of 2008, subleasing nearly 800,000 square feet at around $215 per square foot at 180 Maiden Lane in downtown Manhattan to none other than AIG.

While the $172 million deal isn't as significant as the other $13 billion AIG was on the hook to Goldman for, it's yet another reason why Goldman would be pulling hard for a government bailout of AIG.

And should AIG have failed during the height of the credit crisis, guess who would've been on the hook for the empty office space? According to an exchange on the recent earnings call of Caplease -- which holds the lease for the property owner Joe Monian -- that would be Goldman.