The whispers ahead of the Goldman Sachs (GS) earnings report were that the bank would report a blowout quarter, but that it would all be courtesy of AIG. The conspiracy theory was that Goldman was going to benefit twice from the collapse of AIG: first from the CDS payout, and second from its own hedges against the insurer.
Well that may have been the case last quarter, but on the Goldman Sachs conference call this morning, CFO David Viniar said that the AIG bailout had $0 impact on its quarterly earnings, and that most of the cash flows from the AIG bailout were last year.
We don’t suspect this will quiet the conspiracy theorsists, but that’s the official line for now.
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