Goldman Sachs argued for more than a year that it would not have taken significant losses if the U.S. government had allowed American International Group, one of Goldman's major trading partners, to go bankrupt. An audit by the inspector general for the Troubled Asset Relief Program comes to a different conclusion. According to the report, collateralized debt obligations to protect Goldman from losses on AIG would have done little good given market conditions of the time. "It is far from certain that the underlying CDOs could have easily been liquidated, even at the discounted price of $4.3 billion," the report says.

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