AIG and Goldman Sachs take the hot seat
Derivatives, derivatives, derivatives: that was the hot topic at the Financial Crisis Inquiry Commission last week. The bipartisan group tasked with figuring out how our economy melted down called on executives from AIG, Goldman Sachs, scholars, and regulators to help explain what the heck a derivative is and why they played a role in the collapse of our economy. If you have ever wondered what the notional value of over-the-counter derivatives were in 2008, the answer is $684 trillion. That’s trillion with a “t”. According to the chairman of the commission, that’s ten times the GDP of all nations. David examines all this risky business.