I WONDER WHO GOLDMAN BOUGHT THE INSURANCE FROM?

A NY Times article, "Wary of Risk, Bankers Sold Shaky Mortgage Debt," notes that Goldman Sachs realized in late 2006 that the sub-prime stuff was indeed a Big Shitpile (© Atrios):

Almost a year ago, on Dec. 14, 2006, David A. Viniar, Goldman’s chief financial officer, called a “mortgage risk” meeting. The investment bank’s mortgage desk was losing money, and Mr. Viniar, with various officials, reviewed every position in the bank’s portfolio.

The bank decided to reduce its stockpile of mortgages and mortgage-related securities and to buy expensive insurance as protection against further losses, said a person briefed on the meeting who was not authorized to speak about the situation publicly.

If you look at what Goldman seems to have lost, as revealed in this NY Times graphic:



it seems that it's insurer(s) owe Goldman almost $6 billion.