The Financial Times reports that American International Group (AIG) is considering potential claims against Goldman Sachs (GS) over losses incurred on seven Goldman-arranged Abacus collateralised debt obligations [CDOs], previously insured by AIG, with an original value of $6 billion.
Last year the US government-backed insurer, saved from collapse in 2008, and Goldman agreed to cancel the insurance on some $3 billion-worth of CDOs, a move that led AIG to realize a loss of about $2 billion.
According to FT, if AIG discovers that the CDOs and residential MBS that the co.’s asset-management unit purchased as part of a securities-lending business had disclosure issues similar to those alleged in the SEC charges against Goldman, AIG would be able to complain to the SEC and file claims to recover money.
The financial daily also said, citing sources close to the situation, that AIG had yet to decide whether to take action.
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