The real AIG scandal is that the company's trading partners are getting fully paid rather than taking a haircut.
That is according to Eliot Spitzer writing at Slate magazine as he looks into the transfer of $12.9b from the ailing insurance brokers to Goldman Sachs.
The papyment he says brings up an important point.
why was Goldman wise to AIG's declining position two years ago, but nobody else appears to have known? There is always the operating premise that Goldman is better than the rest in the field, but where were the federal agencies that should have been taking a look at AIG's leverage situation and general financial health?
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