How Mitt Romney Got A Seven-Digit Windfall Courtesy Of Goldman Sachs

Mitt Romney, man of considerable wealth, has Goldman Sachs to thank for at least some of his fortune.

In his 2010 and preliminary 2011 tax returns, made available for public viewing on Tuesday, Romney's relationship with the Wall Street firm comes to life -- one in which a future Republican presidential candidate benefited from preferential treatment during the iconic investment bank's initial public offering in 1999.

(Read More about the Mitt Romney-Goldman Sachs connection at The Caucus)

As noted by The New York Times, Romney experienced a seven-digit windfall in 2010 thanks to his connection with Goldman Sachs, which handled many of the candidate's assets in return for some $48,582 in management fees.

Romney's bonanza came about as a result of a 2010 sale of 7,000 stock shares from Goldman Sachs's initial public offering, which happened in 1999. At the time, Goldman's public launch raised some eyebrows for how carefully the company steered the allocation of its own stock.

The fact that Romney was even given the opportunity to have shares in the company when it went public makes him part of a rather exclusive club, as shares went to a handpicked group of customers, employees, and partners. Romney acquired 7,000 shares, which went into a blind trust managed by Goldman itself -- eventually netting $1,130,123.87.

That sale wasn't the only time that Romney realized financial benefits as a result of his connection with Goldman Sachs. The Center for Responsive Politics, which tracks campaign contributions from the employees, owners and political action committees of various organizations, lists Goldman Sachs as the top donor to Romney's campaign in this election.

Romney's relationship with Goldman Sachs could raise questions about his ability to police the financial sector in the wake of the financial crisis. Still, he's not alone in getting criticized. The cozy relationship between Wall Street and Washington has come under fire thanks in part to the Occupy movement.

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Comments

[Sadtothebone]

02:30 PM on 02/04/2012

Mitt was, is, and will always be a 1%, not a man thgat cares about anyone else be they middle class or poor. His cadidacy is merely to maintain, or improve (if that is possible) the lot of the rich at the further expense of everyone else. He is the manifestation of the continued war on the middle class and poor by the shamefully rich who somehow fear loss of their Louis the XIV lifestyles.

[sleepyguy510]

01:11 PM on 01/26/2012

The name Goldman Sachs has been way to involved in the political process in the US since Reagan started selling the country off. The sad thing is not one administration has done a thing to stop it.

[742]

11:37 AM on 01/26/2012

Easiest way for Goldman Sachs to to stay close to the power brokers in both parties, buy everyone in the upcoming election! They already own the Supreme Court, Congressmen/women, Senators, Mayors etc., etc.

Break up the banks! Enforce all sunshine laws before the anger spills into the streets and we see an American Spring!

[luv2livzen]

04:47 AM on 01/29/2012

Agreed. We know what 'too big to fail means'. These fraud felons ( Wall St. / bankers / Corporations, etc.) need to be separated from Congress / politics. OWS has done well in keeping the inequities visible, so to speak, on various issues that need changing. It got people listening / checking into details. Fox & the GOP/TP sure tried discrediting them. Well, the 1% doesn't want to give up their control of the country / globe. Luckily, there are many of us who don't buy into their crazy, fear mongering propaganda! We are 'able' to think & analyze for ourselves, thankfully!!

[StopMakingSense2]

01:19 PM on 01/25/2012

Mitts the perfect figurehead for our plutocracy!

[Mrald]

09:34 AM on 01/25/2012

Why does Goldman Sachs have such power? Because our politicians are so greedy that they just keep taking more and in turn become more in debt politically. Shame on all of them.

[Caniculus]

09:19 AM on 01/25/2012

In other words, at least part of Romney's fortune results directly from the taxpayer bailout of Goldman. Our money went into Mitt's pocket. I guess that's what Romney meant when he said, "Corporations are people my friend. . . . Everything that corporations earn go to people."

What he failed to mention was that all the bailout money that corporations receive from middle-class taxpayers also go to people -- mainly rich people.

Hopefully, a Newt-friendly super PAC will find this useful.

[greyhound2]

08:50 AM on 01/25/2012

Why don't you investigate Romney's ties with the Morman Church? The Morman Church uses it's 10% tith requirement to buy up American businesses and then operate them on a tax free status due to its religious exemption. As a good Mormon, how much influence does Romney's business dealing have to do with connections to the Mormon corporation?

[gtp]

07:57 AM on 01/25/2012

Romney's response? "Everyone's just jealous."

[StopMakingSense2]

01:21 PM on 01/25/2012

With all of Daddies help and connections I bet Mitt considers himself a self made man and a poster child for economic equal opportunity!

[gtp]

01:28 PM on 01/25/2012

In fact, he was bragging about being such self-made man the other night. Do you really think that having a father who was a republican governor of MI and the former CEO of an American car company didnt play any part in becoming CEO (from day one) at Bain Capital.

[sleepyguy510]

01:12 PM on 01/26/2012

I can't be jealous of him or people like him, I still have a soul.....

[luv2livzen]

05:31 AM on 01/29/2012

Same for me! I don't relate to those whose main mission in life is to build a financial empire. And I don't Want to relate to them. How about one of the top goals being: Showing compassion in person (vs. check to charity) Or doing personal growth work to become more evolved / conscious / awake. This is a Big One for tons of people. Think: Eckart Tolle, Wayne Dyer, Deepak Chopra, Gary Zukav to name a few well known authors. Just the fact he thinks people are jealous or envious proves he doesn't have a clue!! It's been proven that fulfillment & happiness are not tied to being wealthy. And that is why I don't Care to relate to him - we have opposite belief systems. I'm sleep deprieved & doubt I'm wording this sensibly. If a person can meet all their bills, put some in savings, & some in retirement, etc., then an extra say $200,000 per yr. is not going to have the huge effect on happiness that so many think! The law of diminishing returns! I assume Mitt & Newt would argue with researchers on their findings!!

[themodernleader]

02:57 AM on 01/25/2012

Nobody will read this extraordinary information that will not be reported in the main stream media. Alexander Eichler should be given a gold medal for distinguished investigative reporting. This is an unprecedented glimpse into the web of actors interconnected to subvert our Republic. Soon, information of this sort will be forbidden as subversive to freedom-loving subjects of benevolent tyranny.

[themodernleader]

02:49 AM on 01/25/2012

When a banking cabal gains control of a nations currency, the leaders of that nation grow to expect windfall wealth because of their offices. Goldman Sachs gave IPO stock to Romney figuring his star was rising and the presidency was in his future. If Romney is elected, he will follow the banking cabal strategy of boom and bust and national emasculation and ruin. Americans will be begging along the roads and airports traveled by the foreign owners checking on their properties and businesses operated for oligarchy within an impoverished nation.

[gtp]

07:59 AM on 01/25/2012

When you say foreign owners, does that include interstate highways and international bridges? Good post.

[themodernleader]

09:57 AM on 01/25/2012

  Selling our public roads, bridges and other assets, especially to sovereign funds, is an act of treason.  Leaders who attempt to sell public assets should be thrown out of office by  an aroused citizenry,.  F& F.

[Omar The Tentmaker]

11:15 PM on 01/24/2012

Willard, you got some explaining to do!

[justanoldhippie]

10:13 PM on 01/24/2012

Goldman Sachs is Mitt's number one top contributor: http://www.opensecrets.org/pres12/contrib.php?cycle=2012&id=N00000286 ($367,200).

Please take a look at Romney's list of top contributors and compare to Obama's: http://www.opensecrets.org/pres12/contrib.php?cycle=2012&id=N00009638

As it concerns Obama being in the back pocket of wall street? Are you kidding me?

Wall street has been been killing themselves to make everyone believe that Obama's policies are at odds with prosperity (which has doubled in value from its collapse in 2007/2008)... and want Obama gone.

Who is Obama's number one large donor? Microsoft ($171,500).
48% of Obama contributions come from small donor contributors (under $200).

Romney's small contributor percentage is 10%

Looking at Romney's list of top contributors, I'd bet that he is more in the pocket of wall street, and too big to fail banking than Obama ever was.

[gtp]

08:02 AM on 01/25/2012

Come on man, you're just jealous of Mitt. We all are. That's why we're against him, jealousy, nothing more.

[moneyman1]

12:16 PM on 01/25/2012

No, we were brought up to believe in the "Golden Rule" and if Willard was a true christian he would believe in it too. But he isn't a christian, he's a vulture capitalist through and through. Greed is good in Romney's world and the teachings of Christ are for other suckers.

[Veri]

10:11 PM on 01/24/2012

Everywhere we go, we find Goldman's Sach... from the help the gave the Greeks in illegally hiding Greek debt - eventually leading to the downfall of Greece and a takeover by banks - to the Asian financial crisis of 1998, to CDOs and CDSs, to government back-door bailouts.

There is always Goldman's Sach. Top campaign donor, or near the top. From Obama to Romney. Democrats and Republicans. Campaign donations are a hedge against regulations they don't like. With the rest of Wall Street doing a 60/40 split in campaign donations between the two parties.

This sh*t has got to stop.

[becky bradshaw]

10:46 PM on 01/24/2012

Last year, Goldman Sachs was the kingmaker/undertaker in Southern Europe. Greek Prime Minister Lucas Papademos and the Mario twins, as in the new President of the European Central Bank Mario Draghi and new Italian Prime Minister Mario Monti are all Goldman Sachs functionaries.

The 1990s saw a number of countries, including Italy and Greece engage in financial transactio­ns that masked their public debt in order to secure entry into the euro. Goldman Sachs was their partner in these activities­.

Greece's PM Papademos oversaw his country's entry to the euro running the Central Bank of Greece from 1994 to 2002 before he became vice-presi­dent of the ECB. Italian PM Mario Monti was an adviser to Goldman Sachs before taking his new job, and Mario Draghi was head of the Italian Treasury from 1991-2001 before heading to Goldman until 2005 until he took over at the Italian Central Bank.

Using complex derivative­s supplied by Goldman Sachs, Italy and Greece were able to minimize the apparent size of their government debt, which euro rules mandated shouldn't be above 60% of the size of the economy. This created the debt bomb that the technocrat­ic rulers used as an excuse to seize power.

Reference: http://www­.tothepoin­tonline.ne­t/2011/12/­21/economi­cs-profess­or-on-gree­ce/

[Veri]

03:17 AM on 01/25/2012

Max Keiser got it down straight. He's been on the front for the last several years. Thanks for expanding upon the topic.

[gtposse]

09:50 PM on 01/24/2012

It's good to be the king.

[bogeys6263]

09:32 PM on 01/24/2012

Is there a good one out there? Still looking!