AIG Rescue - Paulson and Goldman Sachs

Did Paulson save AIG because Goldman Sachs have an interest?

According to Steve Forbes, the government made a very good deal on its $85 billion dollar loan.

"AIG's rescue calls for the U.S. Federal Reserve to lend up to $85 billion to AIG for two years in exchange for a 79.9 percent equity stake. It comes just two days after U.S. authorities refused to bail out investment bank Lehman Brothers Holdings Inc (LEH.N), forcing it into bankruptcy court despite pleas from Wall Street's chiefs.

AIG will pay interest at a steep 8.5 percentage points above the three-month London Interbank Offered Rate, making the current rate equal to about 11.4 percent. That gives AIG a big incentive to embark on a massive asset sale program to pay back the loan quickly."

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But according to Reuters, "Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) had as much as $20 billion at risk had the insurer American International Group Inc "

"The Wall Street bank told the newspaper that it was never imperiled by AIG's troubles. Spokesman Lucas van Praag also disputed the $20 billion figure, saying it did not account for collateral and hedges that Goldman employed to reduce risk."

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Either way, this information should have been disclosed.