Originally Posted by Bucking Bar

In this cycle the government has done things that I considered impossible and illegal. The recapitalization of AIG and the forced transfers to Goldman and the German banks for 100 cents on the dollar still makes me about pass out.

When Mr. Greenberg was running the show he would have let AIGFP (Financial Products) go bankrupt and told Goldman "sorry Charlie, you knoew what you were doing." Instead the US taxpayer made Goldman whole on their very speculative bets.

AIGFP was completely firewalled from the rest of the organization. It was no different from other subsidiaries like International Lease Finance (who probably owned the jets you've flown).

Anyway, AIG should have:

• Let AIGFP sink and stuck it to Goldman, or
• Went to zero, and stayed there

The real irony is, by going something Hank Greenberg would have never allowed, AIG preserved somewhere around ( billion of Hank's own money.

Still just can't believe it. Like a dream after too many White Russians.