Latest Legal News: N.Y. Fed Asked AIG to Cover Up for Goldman and Others

Abigail Field

A daily look at the legal news and business of law:

Paper Trail Shows the N.Y. Fed Asked AIG to Cover Up Bailout Details

A newly disclosed "Schedule A" details the $62.1 billion in credit-default-swap (CDS) insurance-style transactions that brought AIG down, thereby revealing the underlying machinations of Goldman Sachs (GS), Merrill Lynch, Deustche Bank (DB) and others. Although parts of Schedule A have been disclosed piecemeal, what we've learned for the first time is precisely who created the garbage securities insured by AIG, who initially profited from them and who knew just how bad the securities were.

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