AIG Will Be Paying for Legal Defense of Goldman Sachs’ Top Executives; They Have Insurance Underwritten by AIG

April 25th, 2010

Unless the AIG imbroglio is untangled, the rest of this is nonsense.

Elliot Spitzer: “There are no coincidences in this world. None.”

Who bailed out AIG?

The U.S. Taxpayer.

So, who’s actually going to pick up the tabs to both prosecute and defend Blankfein and the gang?

The U.S. Taxpayer.

I don’t understand the significance of this Kabuki theater production, but for sheer batshit insanity points, this somehow feels different; like it’s going to be a tough one to top anytime soon.

Via: Bloomberg / Business Week:

American International Group Inc. may be required to pay to defend lawsuits against Goldman Sachs Group Inc.’s top executives, including Chairman and Chief Executive Officer Lloyd Blankfein, under directors and officers insurance policies held by the company.

AIG, which was rescued from collapse by the U.S. government, sold so-called Side A directors and officers’ coverage to New York-based Goldman Sachs, according to a person with knowledge of the policy. Goldman Sachs was sued last week by the U.S. Securities and Exchange Commission, which claimed it misled investors about collateralized debt obligations tied to subprime mortgages in 2007.

“If it were a derivative suit against Goldman, defense costs would be covered, and I’d prefer not to be a primary on the policy,” said John Degnan, vice chairman and chief operating officer of AIG competitor Chubb Corp., while answering a question about Goldman Sachs on an April 22 earnings call.

2 Responses to “AIG Will Be Paying for Legal Defense of Goldman Sachs’ Top Executives; They Have Insurance Underwritten by AIG”

  1. dagobaz says:

    a more clear cut example of “fruit of the poisoned tree” I simply cannot imagine.

    If we had anything like a functioning government of the people, this insurance at public expense would be immediately declared as contrary to the public interest, and nullified.

    I say: “BRING IT, JERKS !!!” this shall only hasten the day when …

    “I’d like to live just long enough to be there when they cut off your head and stick it on a pike as a warning to the next 10 generations that some favors come with too high a price. I want to look up into your lifeless eyes and wave like this [waves at Morden]. Can you and your associates arrange that for me Mr. Morden?” — Vir Cotto Babylon 5

    cybele

  2. ronjondoe says:

    just more indication these are show trials, a few flunkies will go to Club Fed, some meaningless, toothless regs get passed and back to the club for Cubans, Cristal and whores, boys!!!
    The die has has been cast for many years now, us peons are just along for the ride, where ever that boat may land in the Shit River…

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