SocraticGadfly: Paulson has HUGE conflict of interest on AIG bailout

September 28, 2008

Paulson has HUGE conflict of interest on AIG bailout

His former employer, Goldman Sachs, was AIG’s largest trading partner, allegedly on the hook for $20 billion of risk:
Goldman Sachs was a member of A.I.G.’s derivatives club, according to people familiar with the operation. It was a customer of A.I.G.’s credit insurance and also acted as an intermediary for trades between A.I.G. and its other clients.

What in the way of Goldman stock does Paulson currently own? Did Paulson ever broker any of these intermediary deals? Did he ever write any Goldman paper for AIG?

What does he own at other investment banks, hedge funds, etc.? During bailout negotiations, did Democrats ask for him to disclose more about his finances than he did during his conformation hearings?

Also, per what the story says, why aren’t Office of Thrift Supervision reports made public on this?

As for AIG, this one didn’t even start in America. The story notes its loonier investments came from its London office, under the oversight of a former Drexel Burnham Lambert executive.

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