Goldman Sachs received almost $3bn from AIG bail out

31 January 2011

Goldman Sachs received nearly $3 billion worth of funds from the American International Group (AIG) after the latter had been bailed out during the financial crisis, a new report has claimed.

According to the Financial Crisis Inquiry Commission, the investment bank received the figure for its own account as part of $3.4 billion related to credit default swaps (CDS).

As much as $2.9 billion is believed to have been allocated by Goldman Sachs for use in proprietary trades, which the bank would have made on its own behalf.

The report, which was quoted by CNN, said: “Of that $3.4 billion, $1.9 billion was received after, and thus made possible by, the federal bailout of AIG.

“Thus, unlike the $14 billion received from AIG on trades in which Goldman owed money to its own counterparties, this $2.9 billion was retained by Goldman.”

AIG received a total of $182 billion in financial support from the government.

The news provider said that AIG used to be the largest seller of CDS.

Last year Goldman Sachs paid $550 million to the Securities and Exchange Commission to settle allegations it had misled investors over a product related to a credit default obligation.

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