Main Street Pays Gambling Losses of Wall Street?

[WhiskeyGirl]

Goldman Sachs Sued by German Bank Over Davis Square VI, an AIG CDO Bailed Out by Taxpayers
Politics / Credit Crisis 2010 Oct 05, 2010 - 11:04 AM

Landesbank Baden-Wuerttemberg, a German state-owned bank, is suing Goldman Sachs over a $37 million loss on its investment in its share (a tranche) of a CDO called Davis Square VI. TCW, the manager for all of Goldman Sach's Davis Square deals, is also being sued:

"Goldman knew at the highest levels of its organization that its representations to LBBW Luxemburg that the notes merited triple-A ratings and were high grade were blatantly false," the Stuttgart-based bank said. "Goldman committed fraud and, or, was negligent in marketing and selling the notes to LBBW Luxemburg."

Taxpayers might again ask why the Federal Reserve was so eager to bail out all of AIG's deals (credit default swaps) linked to problematic CDOs at 100 cents on the dollar. The largest beneficiary of that largesse was Goldman Sachs, whose former officers rose to influential positions in the U.S. Treasury and Federal Reserve Bank and were at Goldman's helm when these deals were created.

The taxpayer funded bailout of AIG very likely helped Goldman Sachs to avoid potential lawsuits, among other lucrative benefits. (See "Goldman Sachs: Bullies on the Block," September 13, 2010.)

more here - http://www.marketoracle.co.uk/Article23256.html


Did taxpayers provide a never ending bailout for Goldman?  A perpetual get out of jail free?  Would Goldman execs be in jail if money hadn't been provided?  Maybe finded billions of Euros each?

And all it cost was $50 billion according to Obama?  What happened to the other $700 billion of tarp?  Squandered?  Pilfered?  Wasted?