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Posted on 04/19/2010 9:56:45 AM PDT by Nachum
Tensions were rising inside Goldman Sachs.
It was late 2006, and an argument had broken out inside the Wall Street bank’s prized mortgage unit — a dispute that would reach all the way up to the executive suite.
One camp of traders was insisting that the American housing market was safe. Another thought it was poised for collapse.
Among those who saw disaster looming were an effusive young Frenchman, Fabrice P. Tourre, and his quiet colleague, Jonathan M. Egol, the mastermind behind a series of mortgage deals known as the Abacus investments.
Their elite mortgage unit is now at the center of allegations that Goldman and Mr. Tourre, 31, defrauded investors with one of those complex deals.
(Excerpt) Read more at nytimes.com ...
“Wag the dog hits Wall Street”
The BHO White House is going for the low hanging fruit. This is brilliance in my opinion, (which isn’t worth much).
Pass healthcare by ramming it up the arse of the public. Get the control you want with 9 months until the mid terms.
Now, focus on Wall Street. Those SOBs on Wall Street have the crediblity of a Congress person. Hammer them with some stupid, ineffective legislation, and get some feel good points from the public. The State Controlled Media will provide cover, and the BHO White House will look like they’re looking out for the little guy.
(No one will mention that BHO took $1M from Goldman, more than anyone else.)
Also, no one mentions that this piece of legislation would be a major boon to large banks like Goldman Sachs, allowing them to take huge risks at taxpayer expense and protecting them from smaller rivals.
Do we have another youngster crapping up the system? How old was that Leeson chap who took down Barings?
COMING TO A TOWN NEAR YOU Mother Jones magazine circa Feb 2007 reported on the activities of Mark Florian, Chief Operating Officer of Goldman Sachs' municipal finance division.
According to the report, Florian was traveling to statehouses across the US to convince state officials that selling state assets would be "mutually beneficial." One of the scams involved selling state roads then monetizing them via bonding----which would make billions for G/S til the end of time.
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REFERENCE Goldman Sachs opened an office in Princeton NJ 2006 when Corzine was elected (the better to loot the NJ Treasury).
Goldman Sachs Hedge Fund Partners
701 Mount Lucas Rd
Princeton, NJ 08540-1911
G/S Hedge Fund Partners advertises it seeks investments in traditional infrastructure sectors including transport infrastructure such as "monetizing" toll roads, airports and ports as well as regulated gas, water and electrical utilities.
Then-Gov Corzine (ex-Goldman head) stationed Goldman Sachs functionaries in state government as the issue of road monetization surfaced. Corzine hired four of his G/S buddies including G/S alumnus Bradley Abelow as state Treasurer. Corzine took a road show across the state to sell the monetization deal. However, monetizing NJ roads hit a large pothole and collapsed like a flat tire---b/c taxpayers were onto the G/S scam.
They both speak regularly to former Clinton Treasury Secy Bob Rubin who ran Goldman before Paulson (Rubin was an Obama advisor and was later ousted from Citigroup ); Rubin keeps Paulson and Bolton dangling like puppets on a string.
They all supposedly touch base with the heads of the Italian and Canadian central banks—both Goldman alumni—and with ex-Goldman Robert Zoellick, head of the World Bank.
Paulson is now getting his advice on how to handle the crisis from Ken Wilson, recently retired Goldman partner and financial-institutions M&A banker, who Paulson just recruited to Washington to help him out. Already at Treasury were Goldman alumni Dan Jester, Anthony Ryan, David Nason and Bob Hoyt, the department's general counsel.
And—--the conspiracy crowd can't help but point out—Neel Kashkari, 35, a former Goldman VP who Paulson recruited as his Assistant Secretary of international affairs in 2006, has just been appointed—by-Paulson—to run, on an interim basis, the $700 billion TARP bailout fund." END EXCERPT
The BIG question is----how much did they pocket from "Wall Street cronies" for blanketing them with billions and billions of tax dollars with virtually no accountability. NOTE we may never know if Paulson and Kashkari bailed out their friends and cronies but I'll betcha wire transfers offshore musta been going 24/7.
The $700B TARP Bailout is now being called, "A MASTERFUL DECEIT." I'm not saying Paulson, et al, didn't pull a fast one when he testified in favor of the TARP before Congress----but I'm a bit puzzled by Congress' phony outrage. If HR 1424 was a 'MASTERFUL DECEIT' then CONGRESS didn't do its job.
TITLE I—TROUBLED ASSETS RELIEF PROGRAM (required 'Congressional Oversight' sections listed)
Sec. 101. Purchases of troubled assets.
Sec. 102. Insurance of troubled assets.
Sec. 103. Considerations.
Sec. 104. Financial Stability Oversight Board.
Sec. 105. Reports.
Sec. 107. Contracting procedures.
Sec. 108. Conflicts of interest.
Sec. 111. Executive compensation and corporate governance.
Sec. 116. Oversight and audits.
Sec. 118. Funding.
Sec. 119. Judicial review and related matters.
Sec. 121. Special Inspector General for the Troubled Asset Relief Program.
Sec. 125. Congressional Oversight Panel.
Sec. 127. Cooperation with the FBI.
Sec. 129. Disclosures on exercise of loan authority.
In HR 1424 there's enough rules, regs and CONGRESSIONAL OVERSIGHT REQUIRED that not one Dime should have been 'misspent'. So if anything funny did go on Congress should look in a mirror. They dropped the ball -- again. And the same bunch of jerjs will run our healthcare.
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