American International Group was much closer to financial collapse at the end of a Jan. 28, 2008, conference call involving 21 AIG and Goldman Sachs executives than it was before, according to The New York Times. AIG wanted Goldman to return some of $2 billion paid to Goldman for losses on complex mortgage securities that had, in essence, been insured by AIG. Goldman refused and said it was owed more money. Nothing was settled by the end of the call. Now, the U.S. Securities and Exchange Commission wants to know whether any of Goldman's demands added stress to the mortgage market.
Published in Brief: