Via Atrios, Bloomberg reports:

[The] chief financial officer for the AIG division that oversaw AIG Financial Products, the unit that had sold the swaps to the banks [wanted] to persuade the banks to accept discounts of as much as 40 cents on the dollar [. . .] Beginning late in the week of Nov. 3, the New York Fed, led by President Timothy Geithner, took over negotiations with the banks from AIG. [. . .] After less than a week of private negotiations with the banks, the New York Fed instructed AIG to pay them par, or 100 cents on the dollar. The New York Fed’s decision to pay the banks in full cost AIG -- and thus American taxpayers -- at least $13 billion. [. . .] The deal contributed to the more than $14 billion that over 18 months was handed to Goldman Sachs.

(Emphais supplied.) Months later, Goldman Sachs gave $200 million to charity. Gee, thanks.

Speaking for me only