[quote=SK in CV]Right Allen, they had a very temporary cash crunch. But never an equity crunch. They didn’t need, nor get any TARP money directly. But as counter-party, they got almost $13 billion in cash from AIG. Compared to Lehman, Bear Stearns or GM, they were never in danger.[/quote]
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.
