AIG Hoping To Blame Goldman For Its Horrendous CDO Losses

robert benmosche AIG

AIG is reportedly investigating whether or not it can take action against Goldman over losses it suffered from $6 billion of deals related to mortgage-backed securities.


Quoting people close to the situation, the newspaper said the securities were similar to those that prompted U.S. regulator the Securities and Exchange Commission (SEC) to file civil fraud charges against Goldman on Friday.

The FT said government-controlled AIG, which made a loss of about $2.0 billion over the deals, was reviewing transactions to insure $6.0 billion-worth of collateralized debt obligations (CDOs) issued by Goldman in the run-up to the financial crisis.

But it added AIG had yet to decide whether to take action.

Every bit counts for AIG these days, if successful they could be in for a much-needed windfall.

Note: The author owns shares of AIG.

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