Posted on 10/18/2009 6:14:01 PM PDT by restornu
Dylan Ratigan: Goldman Sachs magic trick - 10/16/09
How did Goldman, Sachs & Co. -- saved a year ago by the US taxpayer -- magically make $3 billion in 3 months a year later?
This as the US dollar collapses, unemployment soars and foreclosures hit a record?
Here is the Goldman, Sachs & Co. revenue break down for the past 3 months:
Financial Advisory-M/A: 325 million. Equity Underwriting: 363 million. Debt Underwriting: 211 million. Trading-Principal Investments: 10 billion.
Notice that 10 billion is much bigger than two or three hundred million made from the traditional Wall Street businesses.
That $10 billion is evidence of their magic trick. For we the taxpayer gave Goldman Sachs the following:
10 Billion in TARP 11 Billion from the Fed 30 Billion from the FDIC 13 Billion from AIG
For a grand total of almost $70 Billion (Goldman along with every other bank and AIG would have been defunct without this money).
Goldman at the apex of the crisis is delivered this money -- which they then use to borrow against at $20 or $30 for every $1. Which at 30x equals $2.1 trillion in available capital.
As one of the only banks in the world with money at the time, Goldman Sachs was able to buy billions in distressed assets around the world at record low prices -- only to watch $23.7 trillion in US taxpayer money be deployed during the past year to re-inflate the asset's values that Goldman had purchased with our tax money.
The question is not why did we bail out the banks.
The question is why did we give the banks billions of our money so they could then buy assets by the trillions with our money and they keep the profits?
The answer is Henry Paulson, former Goldman Sachs CEO who ran the US Treasury, and Tim Geithner, current Treasury Secretary who at the time ran the New York Federal Reserve, willingly delivered Goldman Sachs the $70 Billion -- with no strings attached.
So what can we do?
We must demand the return of those investment gains made with America's money - it was stolen from us and we can get it back. Demand Claw Backs - and not from the future but from the past - That is where our money is.
We must have an exchange for all credit derivatives -- the current version is riddled with loopholes that let banks avoid transparency by mobbing offshore and prohibiting government regulators from being able to force the use of the exchange by the banks.
So how do you do it?
So much it happening all at once it makes one head spin
I will opine that Ratigan’s employers will set him straight on this soon.
Someone let me know if the video states that Goldman paid its TARP money (or whatever it was) back in June. Thanks in advance.
read John Credule in the NY Post. It is all “insider traiding” and the problem is, the police are on the take, so they all are “making out” at the expense of 17% of the US citizenry. Gee, folks, when are you going to get PO’ed?
As far as was said Goldman Sachs got tax payers money from Henry Paulson, former Goldman Sachs CEO who ran the US Treasury, and Tim Geithner, current Treasury Secretary who at the time ran the New York Federal Reserve, willingly delivered Goldman Sachs the $70 Billion — with no strings attached.
Now after the dust settles surely things will be rectified!:)
Forgot to add video in title
It was all so fast, complicated and done behind doors - the public won’t understand what happened until 15-20 years later.
They aren’t going to give anyone anything, nor will the court-systems recognize the people as having any rights here; bloodshed is the only way this injustice will be resolved. [/cynic]
Goldman did not need the money. They took it for the obvious reason: Why not take free money? If Obama wants to subsidize them with taxpayer money, who are they to complain?
Who is making out very well on this? Warren Buffett
At the height of the crisis last September, Buffett gave GS $5 billion. For that he rec’d
- a 10% annual dividend from Goldman ($500 million per year)
- A right to buy approx. 44 million shares of GS at $115/share. Goldman is now selling for nearly $185/share. That’s >$3 Billion profit folks, based on today’s prices.
Goldman Sachs Group Inc (GS.N) Chief Financial Officer David Viniar said the bank is keen to avoid restrictions it agreed to after receiving funds from the U.S. government late last year and it is looking to pay the money back as soon as possible.
The investment bank, which received a $10 billion capital injection from the U.S. Treasury's Troubled Asset Relief Program in October, is not happy with the strings that came attached to the money.
with no strings attached
Except the interest rate and the warrants. What sort of strings were you hoping for?
I haven’t paid much attention to this Goldman Sachs-thing, because I wanted the dust to settle before I could get a handle on it . . . but the amount of BS floating around this forum is making me angry.
Yeah, I thought conservatives were supposed to be more fact based, but that certainly isn’t the case lately.
It is Corporate America vs Constitutional America.
The Corporations have made their start and wealth off of the backs of the US Citizens.
There is nothing wrong with going global but not at the expense of this nation Constitution.
We need to know if future candidates election where the contributions are coming from!
We have communist and corporate raiders undermining this country
Not all Corporations are traders.
That was the intend Feb 4, 2009 it is now October 18,2009
I swear, it took me all of five seconds to find out that Goldman has repaid its TARP money. What is everyone else’s excuse?
Or was your original claim in error?
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