AIG bailout begs Congressional hearings

Now that former Goldman Sachs CEO Henry Paulson has used his powers as Secretary of the Treasury to bailout September’s $87 billion bailout of AIG – now led by former Goldman director Ed Liddy – with a new, $150 billion bailout, the time has come for Congress to ask a few simple questions in open hearings:

1) To whom is AIG obligated and by how much? Is it true that the original bailout spared Goldman Sachs a $20 billion loss?

2) What would happen to AIG’s regulated insurance businesses if the parent were allowed to fail?

3) Have officials of foreign governments lobbied either the U.S. Department of Treasury or the Federal Reserve for taxpayer support of AIG?

4) Who are the largest holders of AIG equity and debt securities?

5) What did Ed Liddy know about the true financial condition of Goldman Sachs when he served on Goldman’s board? Why did he resign as a Goldman director when he joined AIG? What was the perceived conflict of interest?