Documents detail $4.3B in Goldman Sachs payouts
By The Associated Press – 2 hrs 11 mins ago
A new document discloses the list of banks and hedge funds that received $4.3 billion from Goldman Sachs after the government's bailout of AIG — money that ultimately came from taxpayers.
The money was to cover bets that went bad because of the housing bust. According to Sen. Chuck Grassley, R-Iowa, American International Group owed the money to Goldman, and Goldman owed the money to the banks and hedge funds. Grassley released the documents, which were supplied by Goldman, showing the payments late Friday.
They include $1.18 billion to DZ Bank AG in Germany and $484 million to Banco Santander Central Hispano SA of Spain.
The payments have been controversial because of concerns that the banks should have taken greater losses on their investments rather than be made whole with money that ultimately came from taxpayers.