"Insurer [AIG] closed two transactions with the Federal Reserve Bank of New York [NYFed] that will reduce its debt to the government by $25 billion and position the two units for spinoff or sale. AIG said its outstanding debt with the [NYFed] now stands at $127 billion, down from $42 billion, excluding interest and fees. ... The moves will result in an fourth-quarter charge of $5.7 billion, on top of $11.7 billion in write-downs already recognized, AIG said", WSJ, 2 December 2009: http://online.wsj.com/article/SB10001424052748704107104574569250847894362.html.
The WSJ has this down. Maiden Lane III is a Fed vehicle on its financials. Did Deloitte & Touche (D&T), which audited the Fed know these things as of 20 April 2009? Did D&T do anything at the Fed aside from some bookeeping? What did PriceWaterhouseCoopers which "audited" AIG and GSG know and when did it know it?
I presume VS realized the monolines could never pay off. Here's a link to my 30 October 2007 post: http://skepticaltexascpa.blogspot.com/2007/10/business-i-never-understood.html. I keep coming back to the Big 87654. How good are these firms if they did not understand the monolines were Ponzi schemes? Here's a link to my 13 December 2007 post: http://skepticaltexascpa.blogspot.com/2007/12/business-i-never-understood-7.html.