GS purchased Credit Default Swaps as insurance policies for their MBS that went bad. GS got paid out by the taxpayer as did other banks and sovereign funds and that is money we will not be getting back as they are insurance plan payouts that only go one way. It is not our responsibility as taxpayers to be paying out on securities insurance plans. It is our responsibility to protect depositors for their hard earned cash they place with financial institutions that are supposed to be regulated and closely observed for capital requirements by .gov.
The problem I have with this is that GS claimed they hedged their losses on bad MBS meaning they got paid twice, once from the hedge and once more from the taxpayer. It’s all wrong and so are giving bonuses to people running an insolvent company that they drove to insolvency.
