But here's the smoke:
The two failed to disclose to the public that the AIG problem was even worse than reported. They described AIG’s problems as a “cash squeeze” when it was in fact a full blown bailout of AIG. WHat was supposedly a loan to a distressed company in fact was a bailout of dubious legality.
Had the reality of the situation been properly disclosed, the $185 billion rescue might not have been made. Hence, the fraud.Just by co-INcidence, $90Bn of the $185Bn fraudulently-obtained taxpayer money went to Goldman Sachs, where Paulson was CEO until 2006.
Rope.....check. Pitchforks..........check. Ammo, too!!