Corrupt Democrats (in unison): "We are so close to endless kickbacks to us and immunity from prosecution ..... forever."
Posted on 09/30/2008 4:36:27 AM PDT by stockpirate
Last night Newt stated on Greta that the CEO of Goldman Sachs was the only private company represented at a meeting concerning bailout of AIG with Tres. Sec Paulson (former CEO of Goldman Sachs) and that Goldman Sachs had exposure of 20 billion dollars with AIG.
The Newt stated Bush should fire Paulson. That this was a huge conflict of interest.
Anyone hear more about this?
I heard him say it last night, but haven’t heard any more about it. Scary times. We have traitors on the left and President Bush seems to be AWOL.
Apparently Regulation FD doesn’t apply when it is not convenient. What about sunshine laws?
admin moderator if this is a repeat post please point me to the older post and delete this one.
This matches the generally held belief in the industry rumor mill.
I watched a video at fedupusa.com where a fellow by the name of Denenger went on about Paulson’s involvement at GS with respect to the current financial mess. I thought then, as I do now, that the guy should go. Much less have plenary authority.
I have to go offline for a couple of hours right this minute, so don’t have time to search, BUT there was something on this within a few hours of the downtime for the server installation last night. You might wish to scroll down and see if you can find it. Good luck. Gotta go.......
It’s starting to become apparent that this is ALL about Paulson bailing out his buddies (and his own nest egg) at Goldman Sachs.
I doubt it-—
Everyone had AIG credit default swap exposure
That’s why AIG was rescued
Oh how I loathe that picture. And the scum in it.
I saw it! Astonishing. I REALLY hope this can get some legs and that loser gets fired.
Newt also firmly pushed eliminating mark to market. I love this idea. He said Cox can eliminate it for just TWO WEEKS with a stroke of the pen and it will eliminate the need for liquidity.
Let’s press our reps for this!!!
I saw it! Astonishing. I REALLY hope this can get some legs and that loser gets fired.
Newt also firmly pushed eliminating mark to market. I love this idea. He said Cox can eliminate it for just TWO WEEKS with a stroke of the pen and it will eliminate the need for liquidity.
Let’s press our reps for this!!!
Does that negate the undue influence of Paulson's GS pals and his possible influence?
This is special dealing, pure and simple. Even if AIG needed to be salvaged (there was considerable agreement on this point), having Goldman deeply involved in the process is cronyism. But that's been a staple of this Administration.
From the New York Times:
As the group, led by Treasury Secretary Henry M. Paulson Jr., pondered the collapse of one of America’s oldest investment banks, Lehman Brothers, a more dangerous threat emerged: American International Group, the world’s largest insurer, was teetering. A.I.G. needed billions of dollars to right itself and had suddenly begged for help.
The only Wall Street chief executive participating in the meeting was Lloyd C. Blankfein of Goldman Sachs, Mr. Paulson’s former firm. Mr. Blankfein had particular reason for concern.
Although it was not widely known, Goldman, a Wall Street stalwart that had seemed immune to its rivals’ woes, was A.I.G.’s largest trading partner, according to six people close to the insurer who requested anonymity because of confidentiality agreements. A collapse of the insurer threatened to leave a hole of as much as $20 billion in Goldman’s side, several of these people said.....
A Goldman spokesman said in an interview that the firm was never imperiled by A.I.G.’s troubles and that Mr. Blankfein participated in the Fed discussions to safeguard the entire financial system, not his firm’s own interests.
If you believe that, I imagine you believe in the tooth fairy too. Goldman had $45 billion of equity as of its last balance sheet date. A loss, if it approached $20 billion, in this general environment of worries about financial firms, would have sent Goldman shares into a tailspin, and the rating agencies have started taking a dim view of overlevered financial firms that appear unable to raise equity on reasonable terms. This certainly would have lead to a downgrade, and that has put other firms on a slippery downward slope.
Note the article contains a recitation of denials later in the piece that the damage would have been as large as $20 billion or that Goldman's exclusive role in the talks was self-interested.
The rest of the story focuses on how the credit default swaps operation, a small unit at AIG, was allowed to take on risks that brought a sizable and otherwise highly successful firm to its knees. It is a riveting read.
Paulson revealed!
Newt said the head of Goldman Sachs, Paulson’s former firm was the only private sector CEO present at the meeting to bailout AIG. Clearly “the fix” was in to bailout frinds and family.
Paulson revealed!
Newt said the head of Goldman Sachs, Paulson’s former firm was the only private sector CEO present at the meeting to bailout AIG. Clearly “the fix” was in to bailout friends and family.
PAULSON NEEDS TO GO!!!!!!!
[Remember how the Dems got rid of Rumsfeld?]
He is also using Warren Buffett as an adviser, who just put down a 5 billion dollar investment into Goldman Sachs.
Conflict of interest?? This whole %^&$*#@ mess is one conflict of interest IMHO, try and find someone without a horse in this race, there isn’t one.
Wouldn’t surprise me. I think AIG had written about 440 bill (notional) in CDS exposure. I would be very surprised if Goldman didn’t have at least some exposure and 20 bill doesn’t sound at all out of line. The CDS exposure is really a bigger issue (dollar wise and written by undercapitalized firms) than the bad loans floating around out there. Both Goldman and JPM appear to have a very special relationship with the Treasury and the FED and that’s been known long before this whole crisis began.
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