Friends in High Places!

Indeed! More on the AIG and Goldman Sachs connection in a NYT’s Editorial:

The serial A.I.G. bailouts are especially problematic for their connection to the Wall Street bank Goldman Sachs. At the time of the first A.I.G. rescue last fall, it was reported by Gretchen Morgenson in The Times that Goldman was A.I.G.’s largest trading partner, with some $20 billion of business tied into the insurer. Goldman has said that its exposure to risk from A.I.G. was offset, or hedged, by other investments.

What is certain is that Goldman has lots of friends in high places — yet one more reason why this bailout has to be as transparent as possible. Lloyd Blankfein, Goldman’s chief executive, was the only Wall Street executive at a September meeting at the New York Federal Reserve to discuss the initial A.I.G. bailout. Also involved in the discussion was the then head of the New York Fed, Timothy Geithner, who is now President Obama’s Treasury secretary.

It is really all about those Credit Default Swaps. Just what is Goldman’s exposure? It appears that Goldman is the major counterparty with AIG. Connect the dots folks. Because as we all know in life and politics connections are just about everything.

You know what I was going to say, but I won’t say it.