AIG said in a draft of a regulatory filing that the insurer paid banks, which included Goldman Sachs Group Inc. and Societe Generale SA, 100 cents on the dollar for credit-default swaps they bought from the firm. The New York Fed crossed out the reference, according to the e-mails, and AIG excluded the language when the filing was made public on Dec. 24, 2008. The e-mails were obtained by Representative Darrell Issa, ranking member of the House Oversight and Government Reform Committee.
Sure everyone saw this. Geithner apparently telling AIG to soft-pedal the disclosures about counterparty payments post-bailout.
The House Democrats should be ashamed that it took a Republican member to dig this out. Between owning the individual mandate on health care and allowing the Republicans to seize the moral high ground on the bailouts, the Democrats have just set themselves up to lose a good decade’s worth of elections.