Goldman Sachs To Be Paid $1 Billion If CIT Fails; Taxpayers Would Lose $2 Billion

Financial Times:

Goldman Sachs stands to receive a payment of $1bn -- while US taxpayers would lose $2.3bn -- if embattled commercial lender CIT files for Chapter 11 bankruptcy protection, people familiar with the matter said.

Read the whole story: Financial Times

Comments

[brit prof]

They are doing the work of the Lord

[roybattyjunior]

Stay gold, Lloyd Blankfein...

[springbaby]

They should we undertake the risk for hedging far beyond what is acceptable, regardless of what the law says...why defend them and be on the hook for a bet? Especially since we know the bet will be paid...with our money...and now our children will have to work to pay that bet off.

Without analyzing the market, regulations, government, etc. to find what is "legal"..you know intuitively that this is a scam! Just because they can get away with it doesn't make it right!

[MyLIberalKos]

Everything but the little people have become too big to fail.

Everyday we pay the consequences of Reaganomics and neoconservative economics

good articles; http://iamned1.blogspot.com

80's: Arthur Laffer, MIlton Freidman, Greenspan, Alexander M. Haig, Jr, Donald T. Regan, James A. Baker 3rd,
Later: Robert Rubin, Bernanke, Paulson

[GaBu2]

I understand hume septic is missing, As I did for Volvo, I'm putting posters all over the area, if you see this person, alert the libs:

Now from memory I remember he was lacking in colour, and always had his tongue out, so this is what I remember him to look like.

http://www.mp3lyrics.org/s/septic-flesh/septic-flesh_7.Jpg

[JoshPr]

I predict there will be no reform or change and Obammi will discourage his followers, hence losing 2012. Dems will also lose a lot of seats in the house in 2010.

good articles; http://iamned2.blogspot.com

Obama= fail

[Carolab]

The deadline for the CIT debt exchange is October 29th. If it fails, bankruptcy would be filed in the days following. How fitting. The FT is also obsessing over the CIT thing and two articles appeared over the weekend which discuss the relationship Goldman Sachs has with all this. No doubt, the Goldman conspiracy theorists are chattering again. The FT held back, but, did slide in the adjective "perverse...in a really polite way.

These articles are apt to cause confusion as there are two issues and two FT articles. Firstly, as stated here, Goldman provided rescue financing last summer with an agreement that they would be paid 1billion if the company goes bankrupt or defaults. The second FT article concerns itself with a second source of profit for Goldman should CIT file bankruptcy. They are indeed a large holder of credit default swaps on CIT. The amount, and who is standing on the other side of these holdings is unspecified. You may read about it on the FT website.

[Carolab]

Forgot the FT links:

http://www.ft.com/cms/s/0/9170b5f2-b10f-11de-b06b-00144feabdc0.html

http://www.ft.com/cms/s/0/a5dcac30-b10f-11de-b06b-00144feabdc0.html?nclick_check=1

[PhilipTaylor]

Eventually it will be simple G0LDMAN and JPM owning everything!

[PhilipTaylor]

I watched all nearly 3 Hours of the "Ring.." video and found it interesting!

Do you know anything about the sponsors of it?

Felt like a Pa1estinian Ar_ab response to the Bib1e!

Lots of speculation and weak on facts similar to Bib1e!

[Carolab]

The producer is anonymous.

[bluecollarblogger]

Sell all your stocks, pull your money out of the banks, cash in your 401k's. Lets shut the system down! We have the power! Stock holder revolt! Demand change, I'm cashing mine in, buying a nice condo in Mexico, and going on a vacation for a couple of years, when everything crashes we'll come back and scoop up all these great stocks at basement prices!

[omalley313]

http://www.opednews.com/populum/linkframe.php?linkid=98204

"Goldman Sachs & J.P. Morgan Quietly Buying Up the Media"

[PhilipTaylor]

G0LDMAN and JPM are buying up Media

1. 85% of Nassau Broadcasting Partners =51 radio stations along East Coast

2. Tribune bought by JPM with an majority equity stake

3. G0LDMAN and JPM are eager to "rescue" virtually the entire distressed media space

4. Thousands of TV stations, radio channels, newspaper and magazines.

5. Control of the media propaganda by these two financial Dominators! FCC seems to turns b1ind eyes on stealthily control of entire media world.

6. They want complete domination of the 4th estate and the idiot tube.

7. Bought out of their offshore accounts.

8. G0LDMAN+JPM, better known as Treasury+the FED are cementing control of media industry.

http://www.opednews.com/populum/linkframe.php?linkid=98204

[PhilipTaylor]

G0LDMAN and JPM are buying up Media

1. 85% of Nassau Broadcasting Partners =51 radio stations along East Coast

2. Tribune bought by JPM with an majority equity stake

3. G0LDMAN and JPM are eager to "rescue" virtually the entire distressed media space

4. Thousands of TV stations, radio channels, newspaper and magazines.

5. Control of the media propaganda by these two financial D0minators! FCC seems to turns b1ind eyes on stealthily control of entire media world.

6. They want complete d0mination of the 4th estate and the 1D1OT TUBE.

7. Bought out of their offshore accounts.

8. G0LDMAN+JPM, better known as Treasury+the FED are cementing control of media industry.

http://www.opednews.com/populum/linkframe.php?linkid=98204

[Carolab]

Saw this article too and was going to post it as well.

[PhilipTaylor]

Nothing is T00 B1G T0 FA1L! D!nosaurs D1ED!

So can C1T1+G0LDM AN+JPM+Bof A+M0RGAN

Controlled FA1LURE and saving the SMALLER good parts = Put back into the System!

FAKE Government FUNDED PROFITS hide “Off-Balance-Sheet” Toxic Derivatives according to 0ffice of Comptroller of Currency, 0CC, quarterly Report:

1 JPM0RGAN $81TRILLION in Toxic Derivatives
2 BofA $78TRILLION
3 G0LDMAN $48TRILLION
4 M0RGAN $39TRILLION
5 C1T1GROUP $32TRILLION

http://www.occ.gov/ftp/release/2009-72a.pdf
Page23!

WALL STREET FIVE BANKS must FAIL!

The COST TO AMERICA of them NOT FAILING is $7 Million per Family in America!

“We are in the Midst of what will turn out to be by future economic historians to have been an epic moment, namely the most MASSIVE transfer of liabilities (DEBTS) from the private sector (Banking and Corporations) to the public sector (Government and the People) that the world has ever seen. And I think that is going to be a painful and relatively slow process..(taking many years),” said Wall Street EXPERT Wilbur Ross.

Debt from WS Banks to American Government = Wealth from American Government to WS Banks!

http://www.cnbc.com/id/15840232?video=1174574949&play=1

Skip to 2/3rds of the way to 7:58 through the video!

[PhilipTaylor]

G0LDMAN Pays 1% in Taxes to US on Income of $2,300,000,000 plus $10,900,000,000 in Compensation:

http://www.bloomberg.com/apps/news?pid=20601110&sid=a6bQVsZS2_18

Shareholders are being SKIMMED of their Profits as FUNDS are put in EMPLOYEE POCKETS!

America is being SKIMMED of its FAIR SHARE of Revenue!

[PhilipTaylor]

WHO HAD THE TARP IDEA?

doubtingdavid said, "Tarp and the Bank bailouts were Dems idea."

I guess DEMS WROTE PAULSON'S 2.5 page TARP BILL and I guess Paulson never got down on his KNEES and BEGGED Speaker Pelosi to approve the Bill!

I guess Bush never authorized Paulson to approach Congress!

This kind of L1E is why Conservatives in GENERAL have NEAR ZERO Credibility!

[mtt04]

Doesn't it just make you want to go postal?

How can this continue? Are you Americans gutless or what?

[cliffsiderock]

If Obama keeps doing the same job he has been doing, there is really no reason for the GOP to run against him. If you take out the sound bytes, the country is almost exactly as Bush has left it.... that is unless you are a big corporation, in which case you are living large with tax payers' money or that you are from the lower echelon of society, in which case your life suxks much worst than when Bush was President. Liberals like Obama ironically are the by-products of a free capitalist society-- they want but never know how to pay for it, they demand but never hold themselves accountable for actual achievements.

[novoorganum]

The problem with arresting these criminals for fraud is that our elected representatives made it legal for them to engage in this kind of behavior.

[noesis]

GS is TBTR -- Too big to regulate. It's got to be chopped up, for the security of the nation.

[oldwhitewomantoo]

What ever happened to Anti-trust laws -- where is the AG?????