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Hank Paulson's Prepared Testimony Ahead Of Tomorrow's Hearings
This is December 2008:
Moreover, based on my own experience working in financial markets, I knew that the attempt to revoke the merger contract would have caused great uncertainty and fear in the market, would likely have caused the markets to question Bank of America’s financial strength and managerial competence, and would have led to rating downgrades, weakened liquidity, possible failure and, of course, regulatory action. In short, Bank of America’s completion of the merger, and the subsequent assistance from the government, not only protected our country’s financial system, but also was in the best interest of the shareholders, customers, employees, and creditors of Bank of America and Merrill Lynch. Or, as Mr. Lewis put it, “there was serious risk to declaring a material adverse change and . . . proceeding with the transaction with governmental support was the better course. This course made sense for Bank of America and its shareholders, and it made sense for the stability of the markets.”
Yet a mere 6 months later, everything is supposed to be so much better? Good thing HFTs have been buying i7 server cores to bottlerocket the market straight up in a closed loop. Sigh.
Some more amusement:
I believe my remarks to Mr. Lewis were appropriate. I explained to him that the government was supportive of Bank of America, but that it felt very strongly that if Bank of America exercised the MAC clause, such an action would show a colossal lack of judgment and would jeopardize Bank of America, Merrill Lynch, and the financial system. I further explained to him that, under such circumstances, the Federal Reserve could exercise its authority to remove management and the board of Bank of America. By referring to the Federal Reserve’s supervisory powers, I intended to deliver a strong message reinforcing the view that had been consistently expressed by the Federal Reserve[.]... I note that what I said echoes sentiments expressed in internal Federal Reserve emails, including the sentiment attributed to Chairman Bernanke in a December 20, 2008 email from Jeffrey Lacker, in which Chairman Bernanke is said to have remarked the he “intend[ed] to make it even more clear that if [Bank of America] plays that card [invokes the MAC clause] and then need[s] assistance, management is gone.” Chairman Bernanke, when he appeared before this committee in June, put it this way: “ . . . I don’t think it’s unreasonable if someone makes a decision that endangers his company, that he’d be accountable for that.”
This is the same Federal Reserve that the hundred some economists below DO NOT WANT TO HAVE AUDITED? Regardless, all shall be well - tomorrow, Hank is sure to demonstrate the same kind of Amnesia that the Fed Chairman proved is so convenient when answering a question could lead to much more severe repercussions:
Although attention has recently focused on brief moments of stress during the events of December 2008, those moments are not foremost in my recollection.
If nothing else, tomorrow will prove some more good, cheap entertainment: in addition to artificially inflated 401(k)'s, that's what America values more than anything.
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Wait until the stuttering starts.....too bad they don't do transcripts....
Ciao
MS
Better get him an extra large towel. I can imagine the sweat pouring of his face as he incoherently babbles through his testimony.
That's one bastard that needs to be in prison with Madoff.
GS should not have been allowed to become a bank. They do NO banking like a commercial bank. Most of their revenue comes from trading for their own account (and why should that be backstopped by the taxpayer). They could disappear and no one would notice. But instead they receive taxpayer dollars to insure their survival and the ability to pay out 50% of revenue to employees…………….tell me how that’s is needed to the extent we should use taxpayer dollars? It’s insane and an abuse of public trust and fiduciary responsibility. Everyone involved in that decision should be strung up like Madoff as the crime is the same.
.
I think i might have a f@#$%^%^ stroke reading that master criminal's words! Just because he says it, doesn't make it so...
You note that Squeaky Ben B. said in his recent committee testimony, " “ . . . I don’t think it’s unreasonable if someone makes a decision that endangers his company, that he’d be accountable for that.” Why can't anyone say, fine, but don't force the deal at 80% of a cashcow BAC share for each bankrupt MER share!!!!! I can't get over how this hot potato gets passed around and around. I guess the shareholders will seek their revenge on Lewis for "allowing" it, but SURELY, wethepeople, need to jail Squeaky and Hank the hammer for their orchestration which included plenty of publicizing their agenda--when in fact, it was self dealing for the private federal reserve corporation's favorites. BAC was looted with the .8BAC for1MER, and it continues to be looted by the fleeing of much intellectual capital--a shell was purchased, and for the shell game masterminds, what a win...for all of us, we continue to be screwed unless we insist on our country back, and no more banana republic in the middle of the night deals tolerated--and prosecute this one and all the rest from the fall....this is my constant prayer.
Hank Paulson - Lying for a Living. Good gig for a gangster.
And lets not forget that he was paid AT LEAST $200,000 a day to serve us as Treasury Secy (when you factor in the non-taxing of his "mandatory" Goldman stock sales). This makes him the best compensated govt. employee in history by a light year.
Very good gig indeed. Maybe the best of all time.
http://www.ustreas.gov/press/releases/hp856.htm
"Let me be clear: I oppose any bailout. I believe our efforts are
best focused on helping homeowners who want to stay in their homes.
"As you know, financial market stress began last August and has led to
significant de-leveraging and repricing of risk, and sentiment has
swung hard to risk aversion. There have been, as there always are
during periods like this, bumps in the road and unpleasant surprises
along the way."
--- Hank Kimble Paulson, March 3, 2008
CW
another crook who should be jailed
I agree with argotera.......the federal government is looting the taxpayer and the private sector in general for their own flawed and criminal (especially the actions the Fed has been taking) actions.
By the way, the PPIP and the TALF are exactly the same thing......looting the taxpayer and trying to sucker in some private monies for additonal losses to boot.
thank you Hondo! But, i am afraid the PPIP and TALF are even more tricky than that--the additional money will be sucked out of the US$ money machine creating more debt, and jeopardy for all of us....all in the name of saving potentially ( or already bankrupt if it weren't for money passed with the inception of other acronyms giving away US$ to federal reserve agents) bankrupt corrupt institutions...like you said, looting the taxpayer and thereby mortgaging more of our future.
Chairman Bernanke, when he appeared before this committee in June, put it this way: “ . . . I don’t think it’s unreasonable if someone makes a decision that endangers his company, that he’d be accountable for that.”
Right on.. and what about all the mis-steps that the Fed has taken that resulted in putting the US economy at brink of disaster. Who is being held accountable for that?
Awesome Anonymous! Without proper investigation of the SPV's and SIV's currently dangling all over with potentially trillions of dollars taken from our country for who knows what, and putting our country at risk of default with now what is the FED"S LEVERAGE OF OUR NATIONS SECURITY how can anyone trust our capital markets?
The hiring of an x-enron lobbyist looks very much a fitting thing for the fed and probably gives us a foreshadow of what's to come from this dark private monopoly that is running our country's elected officials and policy.
And let's not forget the missing month of December for our the fledgling new banking enterprises. Remember? GS
and MS were allowed to change their fiscal years
and OMIT THE MONTH OF DECEMBER'S HUGE LOSSES.
It must have been necessary to maintain confidence ;-)
Let's also remember how a Treasury Secretary changed
tax law to allow WFC to write off losses connected
with Wachovia and buy the bank FOR FREE.
Gee, no one has explained where the Secretary was ever
conferred that specifically Congressional power.
Mafia. Blago is cleaner than these people.
When a northeastern broker goes belly up, you need to find a southern sucker to dump the loss off to. If the southern sucker wises up before you can get the money out of the south and into the northeast, then you need Don Federal Reserve Board Chair and Don Secretary of the Treasury of the USA to hold his head under water, making him an offer he can't resist.
What we do not know is how much money has the fed loaned to goldman?
1 billion?
10 bilion?
100 billion?
1000 billion?
Somehow, that last number seems the most likely to me.