Wall Street's Infinite Sleaze: Goldman and AIG

According to the New York Times, Lloyd C. Blankfein, Goldman Sachs CEO, was in the room with Henry Paulson (former CEO of Goldman) when the decision to save AIG was made. Why does this matter? According to the New York Times, AIG owed Goldman $20 billion. If AIG had been allowed to go bankrupt, Goldman would be in line with all the other creditors, hoping for a few dimes back on each dollar of debt. Because Henry Paulson decided to rescue AIG, Goldman gets paid in full.

Did Goldman's influence with their ex-CEO make a difference in Paulson's decision? I have no idea, but this thing stinks. Can you imagine if clerical workers losing their homes got to sit around with bankruptcy judges deciding the fate of their mortgages? It doesn't work that way where the rest of us live.

It is impossible to exaggerate the corruption of this Wall Street crowd.

Comments

[Sundialsvc4]

His Royal Majesty, King George the Lesser, obviously wishes to consolidate the power to carry out His Royal Prerogatives through the hands of his Loyal Ministers. The Royal Exchequer, Lord Paulson, will be happy to ensure that this takes place both during the remaining period of King George's reign and the full term of that of his Successor, King John the First.

His Majesty's Privy Council will be all-too-happy to cede these powers to him, because doing so has made them Insanely Rich. They fully understand that these billions are "ill-gotten gains," but Lord Paulson and his appointed successors (all of whom serve at the Pleasure of the King) will be certain to ensure that the necessary moves are made with a minimum of fuss and absolutely no press-coverage.

The plebes, all 300 million of them, will meanwhile be kept firmly beneath the Royal Heel, made to be mere tenant-farmers of the land they do not own. They "owe their souls to the company store," hence to Lord Paulson, hence to the King.

By Wednesday afternoon, it will be Done.

[americaforme]

Congress doesn't care about their approval rating, they are bankrupt on trust now. Why should Paulson and his buddys from Goldman Bank fear the Court system. Our three branches of gov. are so screwed up, the chickens in Washington, are grabbing with furious greed, running into their corner of the barn yard. Nothing is sacred to them, money hungry, grappling, disloyal Americans.

[betterus]

It is much worse than we know or think. If you jail everyone on Wall Street, perhaps a few innocent ones are caught; but if you jail every other one on Wall Street, a lot of criminals are missed. The top capitalist pigs on Wall Street all deserve life time, if not worse. The very small group of black hands, increasingly self evident, have hijacked America from the people, and completely ruined the country for despicable usurious gain, with the help of their running dogs of all colors and shapes in Washington.

[DGL]

Thank you Mr. Baker,

Dodd, Schumer and Frank came out of their meeting with Paulson 10 days ago selling the $700 billions Plan without knowing why. who what or when. How high do you want us to jump?" they asked their paymasters.
Paulson came to Washington when the housing bubble was at it's peak. Of course he saved his old company and his $500millions too. Interesting too how there is nary a word about this revalation of corruption in the mass media nor by outraged Democrats.
Bush, rather than getting judgement now, gets to exit stage left and await history. He exits leaving every issue that he faced unsettled. His greatest success, doubling the national debt is not even mentioned. He goes off to wherever to accumulate the going rate for docile ex-Presidents 120millions over the next 6 years.
Obama is more of the same, you can believe. He promises help for the middle class.....sometime, somewhere, while opportunity is knocking at the door. He has declared, in his support for this plan, that nothing will change and he can wait for his deferred compensation---$120millions for docile ex-Presidents.

[kellygrrrl]

"It is impossible to exaggerate the corruption of this Wall Street crowd."

and they're going to get away with it

[schatsie]

and that is why I am for collecting their deferred TAXES... Bill Gates and Warren are SITTING on lots of CASH almost 100 billion and there is a lot more of that money out there... It CAN BE TAXED and Collected or we can allow the same old stinky game, that they defer taxes and take them offshore and have their massive tax deductions for Jets, Golf Course, Boats/Yachts, etc...

Go ahead give them 150 billion with personally backed signatures and collateral including their Swiss and Cayman Island and Monaco accounts... Clean up the IRS itself, single payer healthcare for those in bankrupcy, the state insurance commisioners can hire people from the insurance companies and negotiate real solid reimbursement rates, and adjust the tax code to not allow personal expenses greater than the median salary in the US

[jhNY]

And yet, with serious reservations and long tired faces, the Democrats in our legislative branch will give Paulson most of what he wants, plus a few unenforcible platitudinous limitations on his free-wheelin' ways, which will be ignored once he gets his mitts on the money, and then doles it out to his pals, who in turn, will keep every cent and ride off to their private islands in Dubai in gleaming yachts, lending nobody nothing.

The financiers OWN both parties. I'm still voting for Obama, the kinda-scourge of Wall Street sorta, and the Democrats on my ballot, but it's only because I prefer an apologetic thief to one that beats me bloody then laughs at me while he's picking my pocket. Not that it makes a whit of practical difference, but to give credit where credit is due, RALPH NADER WAS RIGHT.

[JBS]

Don't get too happy. The financiers own Ralph too.

[josezeros]

How much nonqualified deferred compensation ($ millions?) does Goldman still owe Paulson? Is it not what this bailout really all about, to protect the gazillions of retirement cash owing to Paulson? Me thinks, this is the real reason for the bailout. Pretty scummy, ain't it?

[Raven]

Dean, you know better than to ask,

"Did Goldman's influence with their ex-CEO make a difference in Paulson's decision?"

And to say you don't know...well, I think you're much smarter than that.

There is absolutely no doubt that whatever financial incentive there may or may not be remaining for Hank, he would continue to be influenced by his former colleagues.

When Hank rode the wave of the deregulation insanity, he thought these guys were the best around. And that wasn't all that long ago.

That's why Congress needs to not be taking its cues from him. His ashen look is not necessarily at what is happening to America as much as it is about what is happening to his beloved Wall Street.

That influence simply cannot be denied by any reasonable observer.

[martinchill]

"In 1905, ex-Senator George Washington Plunkett of New York's infamous
Tammany Hall machine expressed his philosophy about money and politics:

"The day may come when we'll reject the money of the rich as tainted, but
it hadn't come when I left Tammany Hall at 11:25 today."