Kudos to Matthew Goldstein who yesterday got a hold of AIG's much sought-after Schedule A, "List of Derivatives Transactions." Let's hope that Hollywood optioned the AIG saga, because the story is too good to pass. (I'm digressing for a moment, but any thoughts on who could play Geither? Blankfein? Liddy?) While the unveiling of Sked-A identifies the 178 mortgage-related securities, or CDOs that AIG wrote CDS on, the fact that some people seem surprised at these, seems, well, surprising, to say the least.
The Bambi look works for very few people. (Such as Timmy G. at yesterday's hearing, but only because we felt almost sorry for him as we thought he was on the verge of tears several times.)
Flaunting a shocked reaction about the fact that GS was deeply involved not only on the CDS side, but that it also originated a chunk of the CDOs that were in SocGen's portfolio, is akin to an eight-year old clinging to the belief of the tooth fairy- he knows she doesn't exist, but it feels so good to pretend she does.
Sure, GS repeatedly said it didn't know exactly how much credit exposure they held to AIG. In a September 2008 conference call, Viniar even described it as "not material."
Shameless behavior? As we wrote yesterday, GS doesn't feel shame. Shame is for peasants.