Buffett - little patience for those who failed to DO due diligence - really? How about applied to Goldmans' lack of due diligence upon AIG

As reported in the NY Times, May 1 by Andrew Ross Sorkin, the sage held forth at his annual confab link here http://dealbook.blogs.nytimes.com/2010/05/01/buffettpalooza-2010-buffett-defends-goldman/?scp=4&sq=goldman&st=cse

And said this:

"He said those investors (in Goldman's questioned Abacus deal) should have conducted better due diligence. It's hard for me to get terribly sympathetic when a bank (IKB) makes a dumb credit bet."

Hmmmm...let's see - I recall that Goldman got $14B when AIG was bailed out.
Goldman was one of ONLY 16 counterparties to AIG - IN THE WORLD!

Thousands of other financial institutions AVOIDED AIG - including as posted here last year -http://fiduciaryforensics.blogspot.com/2010/01/were-aig-cds-counterparties-par-payoffs.html

• JP Morgan
• Citigroup (Smith Barney)
• Lehman Brothers
• Berkshire Hathaway
• Wells Fargo (a significant Berkshire holding)
• GE Capital
• And every major US insurance company

The link to the 16 lucky AIG counterparties is here
http://www.sigtarp.gov/reports/audit/2009/Factors_Affecting_Efforts_to_Limit_Payments_to_AIG_Counterparties.pdf
See page 24 for the LUCKY list - lucky because made whole, 100% on the CDS dollar and by all accounts failed Mr Buffett's self defined standard.

Or were there other exigent circumstances?
Was it because Goldman had been in a long running feud with AIG over collateral calls on the one and the same Credit Default Swaps (CDS) and Goldman had refused to pay up? Subject to proof, of course.

Ending the siesta on the US taxpayer's dime one little blog at a time.