As we have been saying for quite some time, the AIG bailout was an indirect bailout of many entities.  This allowed for 1 hated entity (AIG) to take the fall for many that would be better off not tarnished (GS).  There would have also been a major backlash due to the foreign entities that benefited from the AIG (100 cents on the dollar) bailout.

The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show.

AIG

via Geithner’s New York Fed Told AIG to Limit Swaps Disclosure – Bloomberg.com.

Related articles:

1. Its Time To Fire Tim Geithner
2. Was the AIG Bailout a Goldman Bailout by Proxy?
3. U.S. gave up billions in tax money in deal for Citigroup’s bailout repayment
4. Revisiting a Fed Waltz With A.I.G.
5. Dow Jones NewsPlus – Geithner: No Power To Reduce Value Of AIG Counterparty Claims