Geez, what the hell is going on here. If I were the CEO of GS and I got a call from Bernanke asking me to loan money to AIG, I'd tell them to fuck off as there is no point in lending money to insolvent institutions. Not even an Investment Bank such as Goldman could waste their clients funds in that way. Right after the phone call, I'd instruct my trading staff to naked short the shit out of AIG and anyone else who is willing to help them. This circle jerk has to stop. Bring back free market capitalism and let the successful institutions mop their floors with the blood of their failed competitors. Dick Fuld's head should be on a mantle in Goldman's lobby.
You see the Fed tells GS JPM wink wink help em out wink wink. That way the fed won't look like it's bailing out wall street. Or maybe the feds balance sheet is a little stretched.
The time when you became CEO, Alan Greenspan admitted his mistake and the Fed won't have to do this kind of panic action.
Didn't Bear Sterns decline to help during long term capital? Look what happened to them. The window was opened after they collapsed. Help the fed or else
if any of us or the banks had a balance sheet that looked like the fed's, then we'd REALLY be in trouble!... yeah, i find it interesting that first AIG announces they're going to ask the fed for $40mm trying to twist the fed's arm into helping and the fed responds by encouraging financial firms to take on more risk to help out AIG. curious times...
So the FED giving money to AIG directly would be too much heat for the FED's credibility, thus they must use GS as a proxy?
Bingo! The Fed told the Street "you're gonna do this cuz we said so", and voila, LCTM's balance sheet was divied up and unwound under the ownership of consortium IBs/BDs. Bear was the one at the table that said "me no likey" and declined to participate, and when it came to pass that they needed the same help...the Street walked away. It was payback time. So the Fed forced JPM to step in. Unfortunately, the number of chairs around the consortium table is quickly shrinking, just as we enter the eye of the financial storm...a current hurricane vs. the brief thunderstorm that was LTCM. So this time they brought the major money center banks to the table and told them "cuz we said so". The list of firms to go to for help are dwindling.......
i think you are way wrong http://www.youtube.com/watch?v=8kqbnEx5SDw Vote the original Maverick!!! "I fundamentally believe the fundamentals of our economy are strong" LOLOLOLOLOL