"Virtually all" of the $80 billion-plus in the initial AIG bailout went to the company's counterparties, including nearly $13 billion to investment bank Goldman Sachs (GS, Fortune 500) alone, Spitzer said.
"Why did that happen? What questions were asked? Why did we need to pay 100 cents on the dollar on those transactions if we had to pay anything?" he asked. "What would have happened to the financial system had it not been paid? These are the questions that should be pursued," he said.