Wow. Our experiment is off to a great start—let's see if we can finish it off sooner than expected.
As Kevin Drum notes, "AIG" (really the mostly government-owned company's government-appointed executives) released the names of its largest counterparties on Sunday. So it looks like the Project on Government Oversight's Michael Smallberg was right on the money when he told me on Friday: "With members of Congress from both sides of the aisle asking for the list, they'll only be able to avoid these questions for a limited amount of time."
Now we know what many observers already suspected: not only were companies receiving billions from the insurance company in what's been dubbed a "backdoor bailout," but some of those banks weren't even US-based. The meat of the "backdoor bailout," Portfolio's Felix Salmon writes, is in Appendix B of AIG's list (PDF): the amounts of bad mortgage-backed securities AIG bought from its counterparties to cancel out the bad insurance contracts it had written for those very same mortgage-backed securities. France's Société Générale got $6.9 billion, Germany's Deutsche Bank got $2.8 billion, and Swiss UBS got $2.5 billion. Goldman Sachs, as POGO suspected, also did quite well: it got $6.8 billion. The benefit for AIG's counterparties here is twofold: they offloaded bad assets, which improves their financial situation, and were most likely compensated for those assets in excess of what were actually worth.