Forum Post: Is Former Goldman Sachs Board Member And Chairman Of The NY Federal Reserve Stephen Friedman Guilty Of Insider Trading?
Posted 3 years ago on Oct. 25, 2011, 6:26 p.m. EST by MonetizingDiscontent
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Is Former Goldman Sachs Board Member And Chairman Of The NY Federal Reserve Stephen Friedman Guilty Of Insider Trading?
Questions linger over former NY Fed Chairman Stephen Friedman's insider purchase of Goldman shares.
(DailyBail) Under question was the knowledge that the U.S. government, through AIG would be paying Goldman Sachs 100 cents on the dollar for the settlement of derivative contracts Goldman had purchased from AIG. In this case, the AIG payout and windfall to Goldman amounted to approximately $14 billion, with no strings. No common, preferreds, or warrants. Found money.
Goldman had just survived a global financial panic that forced Blankfein to solicit $5 billion of extremely expensive outside capital from Warren Buffett in order to remain solvent. In this context, $14 billion from AIG meets any and all definitions of 'material.'
As we have learned from Hugh Son's phenomenal work at Bloomberg, there was an active effort by the NY Fed and its lawyers to keep the details secret, as they pressured AIG officials from disclosing the par payments in required SEC filings.