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Janet Tavakoli: "Goldman Sachs: Spinning Gold"

Tyler Durden's picture




 

By Janet Tavakoli

Goldman Sachs claims great risk management skills, while it shirks
responsibility for its role in the near collapse of the U.S. economy.
The former is a myth, and the latter is a dodge. [1] As taxpayer wealth
was destroyed, Goldman exploited the financial crisis it helped cause,
while the U.S. was (and remains) at war.

Goldman Sachs released its 2009 annual report
today showing it made net revenues of $45.17 billion with net earnings
of $13.39 billion. In its shareholder letter, Goldman says it repaid
TARP money, but did not mention the massive new taxpayer subsidies it
continues to enjoy.

"Goldman did not and does not operate or manage our risk with any expectation of outside assistance."

Yet due to the influence of highly placed Goldman Sachs former
officers, Goldman received--and continues to receive--enormous
assistance from taxpayers.

Goldman cleaned up at the expense of average citizens. For example,
hard-working U.S. taxpayers bailed out Goldman Sachs, Goldman's trading
partners, and AIG. Goldman grabbed new status as a financial holding
company, FDIC debt guarantees, access to near zero-cost
taxpayer-subsidized borrowing, new lax accounting standards, and more.
Now Goldman is making a killing as the Federal Reserve keeps interest
rates near zero. Goldman reaped windfall profits to replenish its
capital, and paid bonuses of over $16 billion to its employees.

Goldman's Cover Story

Goldman claims it did nothing wrong. ("Goldman Sachs: Don't Blame Us," Business Week
cover story, April 14, 2010.) There is a lot to discuss about Goldman's
actions prior to the financial meltdown, but this commentary will focus
only on the largest part of the U.S. economy, the housing market.

When Goldman created collateralized debt obligations (CDOs), it was
obliged to perform thorough due diligence. Previous securities frauds
(unrelated to Goldman) were public knowledge, and there were multiple multi-year reports of predatory lending and fraudulent loans (Ameriquest, FAMCO, and many more). Despite self-serving denials by former Fed Chairman Alan Greenspan,
there were many studies in the public domain that showed that even new
non-fraudulent loans had a higher likelihood of default when zero or
slim down payments were made, including a March 2005 report from the St. Louis Fed.
Separate from this, lending standards slid, which made the problem even
worse. In addition to that, newly created loan products posed greater
risk to borrowers, even when other factors such as lower lending
standards and fraud were absent.

Goldman failed in its duties as a creator (underwriter) of these
CDOs. Goldman's excuses that others were doing it or that Goldman was
only providing a "customer" service do not relieve Goldman of its own
responsibility.

Goldman tries an evasive maneuver when it says it sold CDOs to
"sophisticated," investors. The damage was so pervasive that retail
investors were caught in the web. Moreover, taxpayer money bailed out
the financial system and bailed out investors in Goldman's CDOs. Caveat emptor no longer apples. The unsophisticated public ended up being an unwilling investor.

Built to Fail

There was fraud by borrowers and speculation, but there was also massive widespread predatory lending. Most victims were the least sophisticated borrowers. Mortgage lenders engaged in a variety of frauds
including phony appraisals, altered documents, hidden fees, lies about
the type of loan, and lies about the maximum payments. As for CDOs, the
SEC dropped seminal investigations.

Many of Goldman's "investments" crashed like an airplane made from
faulty components. Some of the CDOs Goldman created--including some
sold to French banks that traded with AIG--ended up in money market funds (as asset backed commercial paper) bought by retail investors.

Imagine that Goldman packaged a herd of cattle for sale. Industry
standards require it to investigate the herd. (Rating agencies do not
perform the inspections; it was Goldman's responsibility.) Cattle had a
history of health problems, so Goldman had all the more reason to
perform thorough due diligence on each herd. A sample would have
revealed that, say, 60% of the healthy-looking herd tested positive for
hoof-and-mouth disease, and the disease could possibly infect the
others.

Goldman claims it did nothing wrong when it slapped good labels--via
complicit rating agencies--on its loan packages, and then sold them.
Goldman claims to be good at risk management, yet despite public red
flags, it now claims it didn't know any better.

Beyond the original problems with Goldman's CDOs, some appear "built to fail." ("Congress Exposes Potential Profiteering in AIG's Deals." - Huffington Post, January 28, 2010.) I wrote about the danger of these types of structures in a book published in 2003. Goldman cannot claim competence and also claim it didn't know any better.

(See also "Wall Street Wizardry Amplified the Crisis," WSJ, December 27, 2007, "Goldman Pays Junior CDOs Before 'Junk' Senior Classes," Bloomberg News, Nov 12, 2009, "Goldman Fueled AIG's Gambles, WSJ, December 12, 2009, and "Banks Bundled Bad Debt, Bet Against It and Won," New York Times, December 23, 2009.)

Billions of Taxpayer Dollars for Corrupt Finance

The Fed abused the taxpayers' trust when it bailed out AIG's trades
for 100 cents on the dollar. The Fed claims its loan for purchases of
the CDOs may be paid back, but that is only 40% of what taxpayers are
owed. The loan was only for the 40 cents on the dollar that remained
after Goldman (and others) already took billions out of AIG. The
purchases should be reversed, and taxpayers should be paid 100 cents on
the dollar--the original principal amount (less interim principal
payments). [2] The proceeds can be used to pay down AIG's public debt.

Goldman's CEO, Lloyd Blankfein, quipped to a reporter that he is
doing "God's work," yet Goldman participated in the transfer of wealth
from hard-working taxpayers to fee-seeking agents of corrupt finance.
Then Goldman accessed taxpayers' funds to protect and enrich itself, as
did other banks. That's not only a self-serving interpretation of
"God's work," it's a perversion of capitalism. Goldman Sachs has become
a symbol of the aristocratic tyranny from which our Founding Fathers
sought to protect our Republic.

The following video (C-Span, April 2009) explains how cheap money,
wide-spread bad (often predatory) lending, phony securities, credit
derivatives, and Wall Street banks' massive over-borrowing led to our
current financial crisis. Yet there is still no meaningful reform.

Janet Tavakoli's book on the causes of the global financial meltdown and how to fix it is Dear Mr. Buffett: What an Investor Learns 1,269 Miles from Wall Street.

 

  1. Prior to AIG's September 2008 collapse, Goldman had more
    than 22:1 leverage (it had less than $5 for every $100 it borrowed),
    and it increased its Level 3 accounting (black box) assets by 27% to
    more than $96 billion. That meant it could "mark-to-myth" or make up
    the prices of these hard-to-value assets. Yet in its just-released
    shareholder letter, Goldman states its "rigorous commitment to fair value accounting"
    before the financial crisis. Goldman had more than any other investment
    bank in the black box ($18 billion more than troubled Merrill Lynch,
    which had just increased its "black box" assets by 70%). If the
    government hadn't bailed out the financial system, Goldman would not
    have been able to get short term funding, and it would have collapsed.

    Goldman Sachs CEO Lloyd Blankfein told the Wall Street Journal he "never had reason to suspect" AIG was in trouble. That doesn't seem plausible. I publicly challenged AIG's accounting and brought AIG's risk to the attention of Jamie Dimon and Warren Buffett in August 2007,
    as Goldman pressured AIG for billions. Goldman extracted $7.5 billion
    in collateral (of $10 billion Goldman sought) on trading positions of
    more than $22 billion from AIG for more than a year before AIG's
    September 2008 meltdown. As of September 2008, Goldman demanded $2.5
    billion more, which the bailout provided. [Of the original $22 billion
    plus trading positions, the Fed's $5.6 billion loan for purchases of
    CDOs plus $8.4 billion only settled up $14 billion of the original $22
    billion. Another $8.2 billion of Goldman's deals--including synthetic
    Abacus deals--remained with AIG with $1.6 billion in collateral applied
    to them. Taxpayers also bailed out this remaining position of $8.2
    billion of credit default swaps.] At the time of the September 2008 bailout, the CDOs' market value was rapidly deteriorating.

    In addition, Goldman created deals that other banks, including French banks Calyon and SocGen, protected with AIG. Either through its own trading or its underwritten deals, Goldman Sachs was the largest contributor to AIG's positions.
    If AIG had gone bankrupt, Goldman may have faced disputes with the
    banks to which it sold its products. In other words, the bailout of
    AIG, bailed out banks to which Goldman sold deteriorating CDOs.
    [Goldman also held $4.8 billion AIG's "agency" securities that would
    have required funding in a difficult market, if taxpayers had not
    bailed out AIG. AIG had invested the cash owed to Goldman in
    deteriorating mortgage-backed assets (of unclear origin), and it was
    unlikely AIG would have had sufficient cash to buy back the
    securities.] If AIG had not been bailed out, a reasonable liquidator
    would have clawed back most of AIG's collateral from Goldman Sachs (and
    others).

    In January 2010, several bank CEOs expressed regret to Congress that they underestimated the steep fall in housing prices.
    They didn't mention that banks were a key cause through excessive
    leverage, funding of widespread predatory lending, and phony
    securities. Bank CEOs expressed no regret when they thought the losses
    would be limited to "homeowners" and outside investors. To add insult
    to injury, banks now perpetrate what Elizabeth Warren calls the "myth of the immoral debtor," and blame hard-working taxpayers, while most of the media covers-up for the banks.

    Blankfein also told Congress that Goldman kept the equity ("first
    loss") investments of some CDOs, as if this indicates Goldman assumed
    risk and had good intent, yet that is no evidence whatsoever.
    Structures can be gamed so that the "first loss" holder has little risk
    and can actually benefit due to the way the deal is set up. Based on
    information already in the public domain, Goldman's deals had a lot of
    unusual features, so Blankfein's testimony should not be accepted at
    face value. ("Goldman Pays Junior CDOs Before 'Junk' Senior Classes," Bloomberg News, Nov 12, 2009.)

    Goldman's current and former officers were influential in varying
    degrees in AIG's bailout. Hank Paulson was then Treasury Secretary. He
    was Goldman's CEO at the time Goldman put on its trades with AIG and
    underwrote CDOs bought by some of AIG's counterparties. Lloyd Blankfein
    was (and is) CEO of Goldman and was influential in the bailout
    discussions. Stephen Friedman, then Chairman of the NY Fed,
    concurrently served (and continues to serve) on Goldman's board.
    Friedman was also the Chairman of the President's (Bush) Foreign
    Intelligence Advisory Board.

  2. The more than $22 billion of Goldman's trading
    positions with AIG should be negated as follows. The $14 billion in
    Goldman's sales to the Fed's Maiden Lane III vehicle should be
    reversed. Goldman should buy back all the CDOs at original value (less
    interim principal payments). In addition, Goldman's approximately $8.2
    billion of synthetic CDOs that remain with AIG should be canceled and
    any collateral paid from AIG to Goldman should be returned. Other bond
    insurers cancelled similar contracts for a fraction of what the Fed
    cost taxpayers, often for as little as ten cents on the dollar, not the
    100 cents on the dollar for which the Fed ultimately settled, and this
    can be rectified now by making a final payment of only ten cents on the
    dollar (unless further investigation is deemed necessary) after the
    transactions have been reversed.
 

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Wed, 04/21/2010 - 11:24 | 310857 DaveyJones
DaveyJones's picture

I was going to make fun of the cougarlife ad then I realized fake breasts and big boobs are great economic and political analogies.  

Wed, 04/21/2010 - 13:28 | 311078 Assetman
Assetman's picture

Well, Janet is as "real" as it gets... as I'm trying to weasel out of THAT analogy. ;)

And... Since Janet was, indeed, a "Goldman Alum", I wonder out loud whether she got the "Play Nice" memo?

It's pretty cool... if she did.

Wed, 04/21/2010 - 13:30 | 311083 dcb
dcb's picture

I think she is totally hot!!

smart (wicked smart), honesty and integrity (makes her hotter), and good looking (makes hotter). But I am an old man of 45. Hell, I'd write her firm and ask for  date. jewish doctor, phi beta kappa, cum laude, sigma xi, and an almost finished mba from a good school. I advise all readers to get the mba. it's like a propaganda academy of false truths and half lies. how to steal with false logic and failed outdated teachings. But they aren't going to teach you things that make you less money.

the worst is business ethics. very strange ethical code. more about how to get away with things and the limits of the law!!!

Wed, 04/21/2010 - 14:06 | 311147 Divided States ...
Divided States of America's picture

You dont need any risk management if all your trades are basically risk free. Via inside information or reliable contacts all over the industry.

Wed, 04/21/2010 - 11:21 | 310860 casino capitalism
casino capitalism's picture

I was told that Goldman has the biggest crude oil inventory outside of the oil companies.  Who benefits from that?  People should thank them every time they fill up their tanks with gas at artificially high prices.  What a scam.

Wed, 04/21/2010 - 11:28 | 310887 macfly
macfly's picture

It's amazing what you can do when you alums people the Fed and the Treasury, and your puppet is in the White House.

Wed, 04/21/2010 - 11:31 | 310891 williambanzai7
Wed, 04/21/2010 - 11:38 | 310903 MsCreant
MsCreant's picture

/Tin hat on/

[Enter the tin foil arena]

There was a theory floated a while back that Obama was letting the bankers do what they do because he was caught up in the system and that he was just giving them the rope they needed to hang themselves, so that he could then come back in and kick their ass with the backing of the public.

Here is another theory. If Obama is the big socialist some make him out to be, wouldn't it be great to catch all of these corporations being dishonest and just kind of "seize" them, for the good of the public? Seemingly dismantle them and take some of the proceeds of that and pay down debt, under the logic of claw back? And then have the capacity to compete with China at resource grabs because we would be structured a lot more like them after the big socialist corporate take over? Let capitalism appear to fail to grab control with little resistance?

[Exit tin foil arena]

/tin hat off/

Wed, 04/21/2010 - 13:08 | 311037 duo
duo's picture

Like directive 10-289?

Wed, 04/21/2010 - 13:31 | 311086 Lubeedog
Lubeedog's picture

Appears to fail!? Huh? Like saying the president of poland's plane appeared to have difficulty landing.

Dimantle and take some proceeds!? Huh? What is your understanding of a ponzi scheme, where the "proceeds" are taken out at the end after dismantling?

I suspect you give politicians toooo much credit. They ARE planning to do 2 things, get re-elected and get paid! Not necessarily in that order. Sorry for giving your theory a golden shower, but it sounded and smelled like a flaming pile.

Wed, 04/21/2010 - 13:56 | 311128 bbbilly1326
bbbilly1326's picture

"Let capitalism appear to fail"

 

haha, Capitalism has failed by  letting itself be corrupted by UNBRIDLED (meaning unregulated) greed.

That's not to say it can't recover, but it'll take an overhaul that modern politicians might not be capable of, without being completely replaced, and with strict term limits.

Wed, 04/21/2010 - 15:05 | 311233 faustian bargain
faustian bargain's picture

capitalism hasn't failed; it has been abandoned. maybe one could say it 'failed to survive', but only because it was murdered in cold blood.

Wed, 04/21/2010 - 20:45 | 311748 MsCreant
MsCreant's picture

Thanks for having my back on that one, faust. Lets see some Capitalism first, before we announce it is a failed experiment.

Wed, 04/21/2010 - 20:27 | 311723 Jendrzejczyk
Jendrzejczyk's picture

/tin hat always on/ (tin hat hair = bad look)

I'm seeing it more like a clash of the real titans and Obama is just a bit player getting squashed underfoot.

Wed, 04/21/2010 - 20:49 | 311756 MsCreant
MsCreant's picture

You are likely right. I have an exceedingly open mind only because of all the improbable stuff that three years ago, I would have told you was far fetched, which I now take as "the facts" and "obvious." 

If I'm frosting my hair, the tin foil actually serves a purpose, but yeah, it leaves a serious ridge on your head, no doubt.

Wed, 04/21/2010 - 11:38 | 310905 tecno242
tecno242's picture

There's a simple solution to all this.

If you are an ex-employee of a TBTF firm, you may not hold influential public office.

Done.

Wed, 04/21/2010 - 11:52 | 310908 SgtShaftoe
SgtShaftoe's picture

Goldman Sachs is a criminal enterprise.  The government has chosen until now not to fulfill their fiduciary duty to prosecute fraud against it's citizens.  They are running out of the precious little time left to do something, and I'm afraid, at some point soon, the American people will resort to cowboy vigilante justice.  At that point things could get REALLY interesting: pitchforks, check.  Torch, check. angry unemployed mob that has been sexually violated by Wall St. (figuratively of course), check. 

This whole thing has imminent disaster written all over it.

 

At its head there rode a tall and evil shape, mounted upon a black horse, if horse it was; for it was huge and hideous, and its face was a frightful mask, more like a skull than a living head, and in the sockets of its eyes and in its nostrils there burned a flame. The rider was robed all in black, and black was his lofty helm; yet this was no Ringwraith but a living man. The Lieutenant of the Tower of Barad-dûr he was, and his name is remembered in no tale; for he himself had forgotten it, and he said: 'I am the Mouth of Sauron.' — J.R.R. Tolkien, The Return of the King

 

The Japanese have a saying: the nail that sticks up gets hammered down. Right now, Goldman Sachs is the biggest fucking nail on the board. And Lucas van Praag is the miniature douchebag standing on top of the nail yelling, "Nyah, nyah! Go ahead, hit me! I dare ya!"  - Epicurian Dealmaker's Mouth of Sauron: http://epicureandealmaker.blogspot.com/2010/02/mouth-of-sauron.html

 

 

Wed, 04/21/2010 - 11:48 | 310934 Kina
Kina's picture

When you go to your doctor to discuss the results of some tests you don't assume he will lie to you about the results, you trust him to be honest and also because of his particular expertise, the reason he can take a high fee,

GS in selling its products and services is exactlly like the doctor. People go to them for their singular high reputation and services, assuming that they are to be trusted to provide the best service and the best product.

You don't expect the doctor to say you are fine when he knows you have bowel cancer. You don't expect the doctor to say, well I gave out the CT scan for the client to look at. Caveat Emptor. You dont expect the doctor to say you have bowel cancer but I have this wonderful medicine to make you well, and to give you sugar pills. Too bad, caveat emptor.

GS and others could be up for squillions if it can be shown any product they made and recommended was substantially inferior to the norm, either deliberately or accidentally. They have a higher duty of care because that is the service they offer.

 

 

 

 

Wed, 04/21/2010 - 11:53 | 310950 contrabandista13
contrabandista13's picture

GS has succeeded at alchemy where all others have failed.....

 

Is it so wrong....?

 

Best regards,

 

Econolicious

Wed, 04/21/2010 - 12:00 | 310965 buzzsaw99
buzzsaw99's picture

"Goldman did not and does not operate or manage our risk with any expectation of outside assistance."

 

Bullshit!

Wed, 04/21/2010 - 12:04 | 310971 LongShortSally
LongShortSally's picture

To add insult to injury, the American Taxpayer, oops I mean AIG is reportedly insuring Goldman board members against shareholder lawsuits.  If true, this "in your face" action shows that Goldman has complete disdain for the opinion of anyone other than themselves and a complete disrespect for the American Public that has bailed them, and AIG out.  I mean c'mon - you couldn't make this stuff up.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a9YrRPYMQyCs

Wed, 04/21/2010 - 12:04 | 310972 Eally Ucked
Eally Ucked's picture

Well, we have to meet reality. 40% +/-5% of US GDP was coming from "finacial services" and Bush administration worked hard to open asian markets to those services, mainly Chinese, it did not work. That sector delivered a lot of upside to GDP for years, now it's time to pay for it. Are you surprised that this ponzi scam falls apart? Even now all those fictional growth of earnings keeps GDP at nice level, the rest is funny at best, all growth for US companies come from Asia which means that population of US does not benefit from it at all, but CEO's do!

 

 

Wed, 04/21/2010 - 12:07 | 310980 AnonymousMonetarist
AnonymousMonetarist's picture

'The SEC didn't have ... the mindset to be a prudential regulator.'
-Mary Schapiro, Chairman of the SEC

'To me the SEC is utterly irrelevant. It is the federal fig leaf over the securities market. Bring back Joe Kennedy ... bring back free markets ... get rid of these people.
- James Grant

'The new normal is not sub par economic growth. The new normal is the roll back of free markets.'
-Russell Napier

'The examination staff at the SEC's district office in Fort Worth, Texas reviewed the Stanford Group's operations in 1997, concluded that its sale of certificates of deposit likely constituted a Ponzi scheme, and referred the matter to SEC enforcement staff. Mr. Stanford kept on selling his seemingly too-good-to-be-true CDs, so SEC examiners investigated again in 1998, 2002 and 2004. Each time, they concluded that the Stanford operation was a probable Ponzi scheme and urged SEC action. Each time, the enforcement staff failed to act…'
-WSJ.com

'I have spoken to the heads of various Wall Street equity derivative trading desks and every single one of the senior managers told me that Bernie Madoff was a fraud. Of course no one wants undue career risk by sticking their head up and saying that the emperor isn't wearing any clothes. As a result of this case several careers on Wall Street and in Europe will be ruined. Therefore, I have not signed nor put my name on this report. I am worried about the personal safety of myself and my family.'
-Harry Markopolos in 2005.

'Obviously, first of all, this conversation never took place … OK? You know, you don’t have to be too brilliant with these guys, because you don’t have to be. The guys … ask a zillion different questions and we look at them sometimes and we laugh, and we say are you guys writing a book? These guys they work for five years at the commission then they become a compliance manager at a hedge fund now'.
-Madoff on a 2005 conference call telling colleagues how to dodge the SEC.

'This s%*t would be really interesting if we weren't in the middle of it.'
—Barack Obama

At first blush the SEC's civil case against Goldie looked like an institutional he-said, she-said.

A second read concludes it is a joke.

Either the folks at the SEC are stupidly criminal or criminally stupid ... a more appropriate servin' would be to charge themselves as well as their co-conspirators in silence and blindness... the fraudulent conveyan' , Nancy Capitalist enablin', Federales that are exhuming the epigram that without prudent regulation Marx, not Groucho, was right.

Ms. Schapiro when a progressive bankster-baitin' anonymous ranconteur takes Goldie's side against your pablum narrative 'bringin' them to justice' you know that we've jumped the capitalist shark and are rappelling our way right down the sovereign democratic rabbithole.

Mary, Mary, to be contrary, how does your mandate go?
For public secs and retail vests?
Or institutions too stupid for d'oh?

Failure to liquidate the insolvent banksters has led to the liquidation of a large part of the productive economy.A taxpayer financed bailout of rich folks' bad speculative bets has resulted in zombie banks and zombie customers... a fiscal tide that lifts no boats.(AM Rule #7)

The stress tests which were truly an I.Q. test, and squeezing the squints, set the stage for a generational workout.

Now extend and pretend is the proposed means to mend.

Why audit the Fed, or question the strong dollar policy which is a chimera of wealth transfer, or consider that in the land of the brave we've honed off the free?

Let's pick the winners and stick the sinners, after all the man on the street needs that metaphorical perp walk so we can turn the page and start afresh.

The magician's ability to get folks to ask the wrong questions belies the need for coherent answers.

In defense of the Banksters(?), incensed by the pranksters ... where the hell is the Hankster?

Can't wait to see Hanky Panky get on the stand and do an Admiral Poindexter.

This s%*t would be really interesting if we weren't in the middle of it

Wed, 04/21/2010 - 12:15 | 310999 Duuude
Duuude's picture

"Banksters...pranksters...Hankster"

An Instant Classic.

Tha Hankster is the one I want to go down.

 

 

Wed, 04/21/2010 - 12:13 | 310991 FreddyInBangkok
FreddyInBangkok's picture

thhh

 

Wed, 04/21/2010 - 12:17 | 311000 FreddyInBangkok
FreddyInBangkok's picture

g-spiv are jumped up barrow boys

 

viz Blankfuck. what more do you need to know

 

barrow boys took over London too

Wed, 04/21/2010 - 12:15 | 311003 jm
jm's picture

I am not a big GS supporter.  I do have small holdings of GS common and preferred shares of my personal account.  Here goes.

I believe that GS made money by screwing some clients, rather than making money for their clients and living off the cut of that profit. Probably just about every business on Wall street needs multiple Wells notices for doing exactly what GS has done.  They just aren't as good at it. This is not a GS problem.  This is a Wall Street problem.  Everything this article says about GS could probably be siad about just about every other financial institution on Wall Street. 

I hope that this is not just another form of government abuse, and GS is a convenient victim because everyone hates them. 

Government is up to the elbows in the financial system through AMLF CPFF TSLF TALF TAF MMIFF TLGP Treasury purchases, GSE DO purchases, GSE MBS purchases, through screwing with capital structure and the bankruptcy process.  Now it seems they have handpicked a financial institution which they intend to make a vote-getting vehicle.  This seesm to be the biggest problem around.

Wed, 04/21/2010 - 14:10 | 311156 Duuude
Duuude's picture

I think you will find Hankster prints on most of those programs.

Wed, 04/21/2010 - 15:11 | 311244 jm
jm's picture

Agreed.  Fraud all over.  GS wasn't the only beneficiary.  BarCap got Lehman's balls on a platter.

 

Wed, 04/21/2010 - 13:15 | 311046 Fraud-Esq
Fraud-Esq's picture

Glad to see Janet on ZH. She knows this stuff flat. 

Wed, 04/21/2010 - 13:24 | 311063 Mercury
Mercury's picture

Let me get this straight: Goldman sucks at risk management but managed to flip their book from long to short subprime (except for the $1bil CDS they sold to Paulson) and screw everyone in America just as the bubble burst?

Wed, 04/21/2010 - 18:00 | 311487 anony
anony's picture

I hate to say it but repititions like this still piss me off and that's a good thing. Please don't stop.

But Why oh Why doesn't one or two of the militia in this country just blow up the fucking bastards at 85 Broad, to kingdom come??

Wed, 04/21/2010 - 18:07 | 311498 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Janet Tavakoli for President.

Do NOT follow this link or you will be banned from the site!