Check out the part of this video starting at 6:30 through 7:40. The other guest beside Greenberg spoke about the issue in more detail earlier. The gist is that Goldman was a counterparty to many AIG credit default swaps. Instead of forcing Goldman to take a haircut, the US paid Goldman 100% for its swaps through the AIG bailout. I suppose it didn’t hurt that Paulson was ex-chairman of Goldman.
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