Andrew Forster, AIG’s former CFO, explains why he thinks Goldman’s aggressive marking down of AIG’s assets was mailicously motivated. Forster explains the rationale that Goldman has put forth, which is that prices were based on "other relevant transactions", is flawed because the market wasn’t active–there simply weren’t other relevant transactions occuring. Additionally, Forster provides anecdotes from other dealers that Goldman aggressively marked down assets that weren’t theirs in order to hurt their competitors.

But AIG isn’t free of fault here. Why didn’t they try to price their assets themselves? Turns out they didn’t develop an internal pricing system until six months later, in December 2007, and they didn’t even try to a dealer poll because they didn’t think it would be successful.

No wonder AIG couldn’t rebut Goldman’s markdowns.