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Goldman Works Its Capture Magic, Hires 15 Year New York Fed Derivatives Reform Veteran
If you can't beat them, might as well get paid by them. Such were the prevailing thoughts in the head of New York Fed veteran Theo Lubke, who after 15 years at Liberty 33, most recently as head of reform efforts in the private derivative market, famous due to its size of roughly €583 trillion which may or may not take the financial system down with it during the next market meltdown. And so, after realizing the derivatives reform is impossible, and further realizing that getting paid a grossly exaggerated government salary for what is basically a lobby job, Lubke has instead decided to get paid an even more exorbitant amount by everyone favorite monopolistic bloodsucking parasite. What is most ironic is that during an ISDA conference in Beijing in April 2009, Ludke said: “It is simply unacceptable in today’s environment that the design and structure of the OTC derivatives market can be controlled by a handful of large dealers.” Oh well - an average government salary is $119,982, an average Goldman Sachs salary is about 4 times greater, an infinite amount of hypocrisy - priceless. For everything else there is the taxpayer bailout debit card.
More from Bloomberg:
Lubke, 44, started this month as chief regulatory reform officer in Goldman Sachs’ securities division, the memo said. The newly-created role will allow Lubke to “work closely with divisional and firm-wide leadership to implement regulatory reform legislation,” according to the memo. Michael DuVally, a spokesman for Goldman Sachs in New York, confirmed the document.
The most profitable securities firm in Wall Street history is hiring Lubke five months after Congress mandated the regulation of the $583 trillion over-the-counter derivatives market after swaps complicated efforts to resolve the financial crisis. The reforms threaten to cut the profit at dealers such as Goldman Sachs because they will make swaps prices known to the public.
In 2007, Lubke was appointed to his former role by Timothy Geithner, now Treasury Secretary, who was then president of the New York Fed. The central bank has pushed for changes in the credit-default swap market since 2005, when Geithner became concerned that an explosion of trading has threatening the ability of banks and regulators to manage and monitor risks that posed a threat to the financial system.
“The Federal Reserve and New York Fed have strict conflict of interest policies for its staff, including departing employees,” Jeffrey Smith, a spokesman for the New York Fed, said in an e-mailed statement. “In this instance, as in all cases, these policies were strictly followed.”
In summary: in this latest example of supreme capture irony, the New York Fed, which is headed by a former Goldmanite, is shedding one its most connected figures in the ongoing regulatory legislation, to none other than Goldman itself: the firm which is in the top 3 of firms with greatest derivative exposure per the OCC. And so, the last gaping loophole in the farce of reg regorm known better as Do-nk, is closed, and things can proceed as they are for one more year before the now proverbial leaning house of dominoes falls for good, and instead of generously providing yet another financial rescue to the bankers following their biggest bonus year on record, this time the middle class may finally proceed with dispensing guillotines instead.
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Ron Paul - Looks like the Federal Reserve, NY Fed, and Goldman Sachs are all saying, "In your face, Ron. You can't touch us."
Ron, please show these criminals that there is a new sheriff in town.
Yes, Ron please do...
+1
+2
Wouldnt it be funny if Ron Paul worked for Goldman Sachs hired to be the virtual paid defender of the middle class? It dosent matter. The Balloon boy paradigm is now a certainty. The world is officially a stage and we are all merely players. Its sad. When i was a kid in the 70s, The world around me seemed so real. What the fuck happened? Nothing is real anymore.
Tom, Ron is a bogeyman. He's the lightening rod who says the right things that truth-seekers want to hear. Nothing else. To believe even for a moment that there is an un-compromised man at this level saying what he does is kidding yourself.
Talk talk talk talk talk. Talk Show. Blather, soothe.
This monkey circus is masterfully designed. There is no actor in there who is not compromised.
Especially in this stage of the game.
ORI
http://aadivaahan.wordpress.com
No doubt, the PigMen will get richer.
Ron Paul's efforts will go nowhere.
Same old Alpha Thugs remain in charge.
Unless Ron Paul's short himself, which in this case means he'll make a boatload.
he's "long largesse." always has been. "can't have bankruptcy if you want the G-Money."
GS is one of the derivatives elite group -- one of the 9 big banks that control the derivatives market. So now they're hiring a former FRBNY overseer? What could go wrong?
FLASHBACK: 1998 Sec. Treas. Robert Rubin oversaw repeal of Glass-Steagall, then immediately jump to Citibank -- which then became the worst offender of toxic MBS. He is now co-Chairman of the CFR.
It's kind of like the student becoming the teacher, appointing his best friend to become the teacher, and becoming the student again.
Seeing as most of America has no clue what "derivative" even means no-one is the wiser and the game rolls on.
Jesus these guys are brilliant. This is raw talent to rig a game to this level, I mean this level of cheating is science. This needs to be studied in a lab.
Oh, I beg to differ.
It's old school.
The only new angle is that Goldman owns so much of our government, that no one and nothing will stop the madness, until the reset button is hit, however, whenever that happens.
By then Goldman will have changed its name or sought a new identity, will be laying low, counting its ill-gotten gains, and scheming like shysters do...
I do appreciate the tyler durden who deals in objective data, but objective useful data this is not. Going on a moral crusade and getting outraged just increases certain circulating hormones and leads to increased heart disease. Be sure to keep it all in perspective!
Congratulations to Theo Lubke on his promotion.
http://www.komonews.com/news/local/111566364.html
That's good writing
Cannot possibly see how GS will benefit from Mr. Lubke's experience.
http://consortiumfinancenetwork.blogspot.com/2009/02/meet-our-panelist-t...
http://www.risk.net/risk-magazine/profile/1720161/profile-federal-reserv...
Welcome to the machine, Mr. Lubke.
http://en.wikipedia.org/wiki/Regulatory_capture
I used to work in an industry with a regulator. The key regulated company would do exactly the same thing to hold the carrot in front of the couldn't-cut-it-in-the-private-sector dolts who hoped for their pay day. It worked very well.
Can anybody verify if the Hindenburg Omen was satisfied today? I'm not sure if the 10 week is rising but...
http://stockcharts.com/h-sc/ui?s=$NYMO&p=D&b=5&g=0&id=p20489603975
"And no one has a problem with this?"
I am shocked! Shocked! by this sort of regulatory capture! You'd think this country was a banana republic or something...
just doing God's work in that wicked old Gotham
and living in the USG-United States of Goldman is such a privilege; maybee I should vote like all the other dumb asses for my own slavery next November?
capture , total capture, all ways every way
forever, talk about heart failure. eat my heart
or leave it to the maggots. this capture shizzle, ongoing.
so, it is pig eyes fed to a dog. they don't care
about the symbology associated with an eye. they just eat and
enjoy it, same with the balls or tripe. munch munch, or a
chop shop, strip it down and recycle it, or an investment bank. the symbolic
is for public manipulation, law. keep the influenced out of the
game. but then dogs are not human and neither are central planners.
so all in all institutions are mimicking a biologic and phylogenic stage
that the individual has accomplished and it is horrifying to observe.
fortunately few find furtive ..........
Anyone who uses Goldman's services is an asshole and an accessory to their continued being.
The financial world and the real world would be a far better place without them
Getting rich at the expense of everyone else...
And all the while KNOWING you are a criminal.
The revolution will not be kind to these scum, oh no it won't!
This henceforth shall ever be knows as the "reverse Hank Paulson" hiring move.
...well...we have a new species here:
http://www.dailymail.co.uk/sciencetech/article-1338220/Graham-Ekins-phot...
See - Lloyd Blankfiend and the band of vipers at Goldman Sachs are already learning new ways to shapeshift and evolve.
squirrels fly, now squid. frogs and trout ....we are in for it man.
Lubke, I've got a "handful of large dealers" for you baby
I propose the phrase "to pull a Lubke" to signify especially egregious forms of regulatory capture. It's mellifluous while capturing the shabby mendacity of the move.
When does GS hire Matt Tabbi to do their PR?
Hey.
A real wikileaks in the form of;
Homes of the Stars meets
Google Maps meets
Board of Directors name and address data bank meets
Child Molester's Website.
So you can click on a company, Click on a board director's name, and up pops a street address with driving directions....
Just so anyone could knock on the door and thank them personally for what they have done for to the country.
just a thought
did someone say parasite?
http://snippits-and-slappits.blogspot.com/2009/06/biological-jew-pt-1-by...