But is AIG creating $80 million off defense to the subprime ties, from which Goldman is the biggest holder. And never the new Ceo, perhaps not the chief monetary manager, perhaps not the chief exposure officer, none of the people going AIG realized whenever the benefits off subprime bonds refused, they might need article collateral repayments to their counterparties particularly Goldman.
And undoubtedly what takes place during summer off 2007 are the brand new subprime business starts to crater. Goldman hits into AIG’s home, and so they state, “You owe us one or two million cash.” And additionally they told you, “For what?” “Well, for the safety you penned.” And therefore emerged just like the an entire surprise towards the leadership out of AIG. They’d zero experience they had you to responsibility in their contracts.