Barofsky On Treasury's AIG Stock Sale: "The 'AIG Bailout Worked' Mantra Is Dangerous, Geithner Is Not Being Honest'
Former SIGTARP Neil Barofsky discussing the AIG bailout, Sep., 11, 2012.
'It's a fundamental question of disclosure, and more important, honesty...'
The NY Fed also allowed Goldman et al. to keep $35B in collateral on the $62B in CDO's (face value) for which they paid the market price (at the time $27B). In other words, they may have made a "profit" on the $27B they paid for the CDO's, but AIG had already effectively spotted them $35B in unrecovered collateral towards the purchase price.
Regardless, the banks still got tens of billions in taxpayer protection on the decline in the value of those CDO's. Clearly another Geithner/Fed "success."