Watchdog: Foreign financial firms received $14B through AIG bailout

Foreign-based financial firms received roughly $14 billion in U.S. taxpayer bailout aid stemming from complex derivatives deals involving Goldman Sachs and American International Group (AIG), a government watchdog said Thursday.

The Congressional Oversight Panel for the $700 billion bailout package said that the taxpayer bailout of AIG benefited Goldman, which in turn benefited foreign-based firms that did business with Goldman.

"Taxpayer aid to AIG became aid to Goldman, and aid to Goldman became aid to a number of domestic and foreign investors," the panel said in a report. "In some cases the aid was in the form of repayment in full of obligations that, without government help, could have ended in default. In other cases, the aid was in the form of guarantees that other parties did not have to pay because the government prevented any default."


All but one of the 32 so-called "second-level counterparties" to the derivatives deals with Goldman were foreign-based financial firms. According to a June report from the panel, Goldman considered itself a "market intermediary." The panel said the 31 financial institutions received a total of $13.98 billion.

Here is the full list of 32 firms and the amount from the bailout that they received in millions of dollars, according to the panel:

DZ Bank AG Deutsche Zentrale Genossenschafts Bank: $2,504  

Banco Santander Central Hispano SA: $1,544  

Rabobank Nederland-London Branch: $852  

ZurcherKantonalbank: $998  

Dexia Bank SA: $865  



Calyon-Cedex Branch: $663   

The Hongkong & Shanghai Banking Corporation: $631  

Depfa Bank Plc: $692  

Skandinaviska Enskilda Bankensweden: $365  

Sierra finance plc: $322  

PGGM Pensioenfonds: $440  

Natixis: $399  

Zulma finance plc: $661  

Stoneheath Re CRDV G: $300  

Hospitals of Ontario Pension Plan: $273  

Venice finance plc: $363  

KBC Asset Management NVD Star Finance: $308  

MNGD Pension Funds LTD: $244  

Shackleton Re Limited: $128  

Infinity finance plc: $375  

Legal & General Assurance: $87  

Barclays Bank PLC: $102  

GSAM Credit CDO LTD: $84  

Signum Platinum: $102  

Lion Capital Global Credit I LTD: $16  


Kommunalkredit Int Bank: $24  

Credit Linked Notes LTD: $14  

Ocelot CDO I PLC: $9  

Hoogovens PSF ST: $46  

Hypo Public Finance Bank: $10  

Royal Bank of Scotland: $5

Total:  $14,059