
First the SEC, then the UK, then Germany… now AIG wants a pound of Lloyd’s flesh, as well:
American International Group (AIG) is thinking of taking action against Goldman Sachs in regards to $6 billion worth of collaterized debt obligations (CDOs) that it insured for the bank.
AIG ended up losing around $2 billion on the CDOs, which were similar to the mortgage-backed securities involved in the separate fraud case brought against Goldman Sachs by the Securities and Exchange Commission (SEC) late last week. Insiders told the Financial Times that AIG is currently considering its position and reviewing the deals to insure the CDOs ahead of the start of the financial crisis.
If AIG does find similar disclosure issues to the ones alleged by the SEC, it may choose to either complain to the regulator or launch a private lawsuit.
Jason’s better with the analogies than me, but it’s kind of like if this were the Simpsons, if Nelson Muntz were to trip and fall and Ralph Wiggum were to kick him in the shins really hard while he was down there and steal his lunch money. Anyway, it’s a dog eat dog world out there – let’s see who else goes for $GS’s throat while they’re briefly knocked supine.


Sally // Apr 20, 2010 at 6:50 pm
Pound of flesh? Or calamari?
alyx // Apr 20, 2010 at 9:26 pm
Yep, that sounds more like Benmosche, walking around in flipflops on the beach in Dubrovnik and nomming on some Adriatic squid.