Griftopia: Bubble Machines, Vampire Squids, and the Long Con That Is Breaking America Highlight

Less well known is that the counterparties to Neuger’s securities-lending operations would receive a staggering $43.7 billion in public money via the AIG bailout, with Goldman getting the second-biggest slice, at $4.8 billion (Deutsche Bank, with $7 billion, was number one). How they accomplished that feat was somewhat complicated. First, the Fed put up the money to cover the collateral calls against Neuger from Goldman and other banks. Then the Fed set up a special bailout facility called Maiden Lane II (named after the tiny street in downtown Manhattan next to the New York Federal Reserve Bank), which it then used to systematically buy up all the horseshit RMBS assets Neuger and his moronic “ten cubed”–chasing employees had bought up with all their billions in collateral over the years.