AIG, Miracle Worker

Goldman Sachs and other 'too big to fail' financial institutions reported good Q1 results. Zero Hedge thinks AIG, using our money , had a lot to do with it. Basically, AIG settled deals with the institutions at quite favorable prices. They didn't buy just one deal, they bought a portfolio of deals. The question of due diligence never raised its head. Here's Zero Hedge's conclusion.

What this all means is that the statements by major banks, i.e. JPM, Citi, and BofA, regarding abnormal profitability in January and February were true, however these profits were a) one-time in nature due to wholesale unwinds of AIG portfolios, b) entirely at the expense of AIG, and thus taxpayers, c) executed with Tim Geithner's (and thus the administration's) full knowledge and intent, d) were basically a transfer of money from taxpayers to banks (in yet another form) using AIG as an intermediary.