Had AIG declared Chapter 11, the court could have
pulled all that back and more.
Goldman was very vulnerable to AIG, and had Paulsen not gone in and paid all AIG CDS at Face, Goldman would have choked.[/quote]
Pat: Utter gibberish and utterly divorced from reality.
Goldman had NO counterparty risk with AIG at all. Their position was nearly fully collateralized through cash and securities and the balance was covered by insurance (in the form of CDS).
You might want to assemble the actual facts before weighing in on a topic.
