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The Paulson Ethics Waiver

Tyler Durden's picture




Presented is the recusing ethics waiver that allowed Hank Paulson free reign to do as he saw fit when bailing out Goldman Sachs. The next question is whether Mr. Fred Fielding recused himself of recusing Hank, and just what authority he was granted by the president to allow such unprecedentedly conflicted individuals as the former CEO of Goldman Sachs to do everything in his power to not only place unlimited collect calls into Lloyd Blankfein's office but to make sure that Goldman was the primary beneficiary of all the banking cataclysms of 2008.

Perhaps Messrs. Fielding and Paulson can disclose just what "fraction of his overall investment portfolio" is still represented by his defined benefit pension plan through Goldman Sachs. Also, if the former Secretary of the Treasury could maybe quantify the reputational impact of having his former company going down in flames, as a direct result of balance sheet and risk practices that are a legacy of his time there, and what the opportunity cost to him relative to the taxpayer was (and it was the latter's capital that bailed out Goldman), that would be very much appreciate by all.

And here is the original "Ethics" agreement sent by one Henry M. Paulson, Jr., to John Schorn, Deputy Assistant General Counsel and Designated Agency Ethics Official, highlighting all his incoming conflicts of interest as he was set to become the taxpayer solicitor general.

 

Source: Talking Points Memo and h/t Ed




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Tue, 08/11/2009 - 10:32 | Link to Comment freedom21
freedom21's picture

FASCISM....AMERICAN STYLE

NOTHING MORE....NOTHING LESS....

WHAT COLOR IS A WHITE HORSE ?

LOSER'S LOSSES PONIED ON THE BACKS OF AMERICA'S GREAT GREAT GRANDCHILDREN, AND ALL INBETWEEN....

 GS SHOULD HAVE 10 CENTS/$....NOT 100 VIA AIG....

 FASCIST LEGAL LARGESSE AT IT'S FINEST HOUR....

JUSTICE IS FOR THOSE THAT CAN PAY THE RIGHT PEOPLE IN THE USA....

Tue, 08/11/2009 - 12:12 | Link to Comment Bobby Fischer36
Bobby Fischer36's picture

All the talking heads are showing town meetings, the people(bless their hearts) are argueing about healthcare. Who is going to be able to pay for it anyway. That is all part of the plan. Keep the masses talking about things that do not matter right now. As Donald Sutherland said in "JFK"..."Follow the money, who had the means and who benefited"

Here is another item you will not see on mainstreet media that took place yesterday. Whistle blower Sibel Edmonds Testifies:

http://vodpod.com/watch/2027789-whistleblower-sibel-edmonds-finally-testifies-under-oath

This is what needs to be talked about at town meetings!

Tue, 08/11/2009 - 13:29 | Link to Comment Veteran
Veteran's picture

It’s like what Lenin said. . .you look for the person who will benefit, and, uh, uh. . .

Tue, 08/11/2009 - 15:19 | Link to Comment handsofmoney (not verified)
Tue, 08/11/2009 - 19:45 | Link to Comment Anonymous
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Sat, 11/06/2010 - 18:06 | Link to Comment sohbetme
sohbetme's picture

I like your ideas and thoughts. While chat and sohbet with my friends talking about it.

Sun, 06/13/2010 - 19:16 | Link to Comment Duuude
Duuude's picture

Tyler

 

In the original document Paulson says that he will not do anything in regards to GS.

I cannot read the second document.

Did an lawful abrogation of the original document occur?

Tue, 08/11/2009 - 18:25 | Link to Comment Hephasteus
Hephasteus's picture

Our justice system is entirely based on sympathy. Fascism is entirely based on marginalizing and brutalizing components outside the sympathy circle. Then you take various components of the excluded circle and pretend to be sympathetic to them allow them to win a bit to build a perception of fairness. All while getting paid because you aren't actually giving them anything that isn't already thiers. You're in a sense controlling by saying when and how and why fairness is allowed. In fact legal and spiritual language and concepts get intertwined when you discuss "wholeness". Wholeness doesn't exist for everyone it only exists when the courts say it exist or it can be manipulated out of the people. it goes to controlling barriers. When your resources are needed we are all in this together. When your resources have been gathered up it's all mine mine mine. By simply controlling the barriers and sympathy you control the whole thing and you can live without barriers while forcing barriers on everyone else. People then stop fighting the government because there becomes a hidden underlying controlling force of we don't give a damn between the inner group and outer group. That is kept in place until it breaks down enough to allow short brief periods of pretending to give a damn which relaxes the counter forces then it's back to trying to force the people into accepting the calloused uncaring as normal. Illusions of progress, illusions of it's going to be worth it in the end. But it keeps on going.

When we try to exert equality of control and make these jackasses live up to our expectations. They are fullly aware of those expectations and pay lip service to them or maybe give in just a little for a while. This rally is that. Ok we've cleaned out enough of the corruption let's go back to normal.

There used to be a curse that affected every president in the US every 20 years. It's called the curse of Tippecanoe. That curse was broken with Ronald Reagan. So the events after that appear to confirm that it's clear that being unsuportive is not enough. You have to directly show ill will towards these forces. So spend a little time jumping up and down on Bernake's chest to let him know what you think of him. Take a stroll through Goldman-Sachs everyday knocking heads off with a sledge hammer and attempting to pound people into floor. These little mental exercises are more powerful than you might imagine. I think this callousness needs to be tested to see just how real it is.

Tue, 08/11/2009 - 10:29 | Link to Comment waterdog
waterdog's picture

Nice catch, worth waiting for

Tue, 08/11/2009 - 11:06 | Link to Comment economessed
economessed's picture

Now the real question:  does Geithner have the same letter on file?  Who signed it?  Where is the legal authority attributed?

Tue, 08/11/2009 - 10:30 | Link to Comment Will Profit
Will Profit's picture

Mr Durden,

           You deign to use the words Paulson, Goldman, and ethics in the same sentence? Sir, that is a profane abuse of your protected right to free speech.   

Tue, 08/11/2009 - 10:31 | Link to Comment Anonymous
Tue, 08/11/2009 - 10:38 | Link to Comment freedom21
freedom21's picture

AND WHY DID PAULSON TAKE THE GOVT. POSITION....????

NO TAXES ON GS STOCK SALES....

READ THIS....

http://www.forbes.com/2006/06/01/paulson-tax-loophole-cx_jh_0602paultax.html

 

IN YOUR FACE FASCISM....

Tue, 08/11/2009 - 10:47 | Link to Comment sunbringer
sunbringer's picture

Those schmucks at Bloomberg were laughing when they reported on the approx. $250 million in tax savings taking the treasury job had given Stealin´ Hank and saying that they had wondered why Paulson would have even taken the job.

Tue, 08/11/2009 - 10:40 | Link to Comment D.O.D.
D.O.D.'s picture

Anon 32782, I would say there is only one way to find out, although my efforts to secure council to sue the SEC for willful negligence and fraud on the American people has not gained much traction, which is not to say I have given up... But I would suggest it is inherently an uphill battle, Sisyphus comes to mind.

Tue, 08/11/2009 - 10:53 | Link to Comment MinnesotaNice
MinnesotaNice's picture

Govt would have to be invited to join the suit; they would decline; and it would be you against Paulson/Goldman.

Tue, 08/11/2009 - 10:54 | Link to Comment Anonymous
Tue, 08/11/2009 - 10:57 | Link to Comment Anonymous
Tue, 08/11/2009 - 10:58 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:22 | Link to Comment somethingisrotten
somethingisrotten's picture

Is that you again Hank(y) (Panky) Paulson?

Tue, 08/11/2009 - 14:08 | Link to Comment Anonymous
Tue, 08/11/2009 - 14:12 | Link to Comment Cheeky Bastard
Cheeky Bastard's picture

+10

Wed, 08/12/2009 - 03:18 | Link to Comment Anonymous
Tue, 08/11/2009 - 10:32 | Link to Comment Anonymous
Tue, 08/11/2009 - 10:34 | Link to Comment andrew123
andrew123's picture

This is totally off topic (if there is a place to put off-topic messages, please let me know), but CNS filed to do a huge secondary, with 10 million primary shares and 12 million shares sold by insiders.

Tue, 08/11/2009 - 10:46 | Link to Comment Tyler Durden
Tyler Durden's picture

There is forum with hundreds of reader created topics.

Tue, 08/11/2009 - 11:22 | Link to Comment andrew123
andrew123's picture

Ok.  I just didn't want it to get lost in the shuffle.  I know this name in particular has been near and dear to your heart, and figured you were either too jammed up to have caught it or are preparing a post (I guess we now know at least one of the motivations bid up every single REIT).

Tue, 08/11/2009 - 13:17 | Link to Comment Milton
Milton's picture

Attention RobotTrader. Maybe you would consider starting a chart analysis forum? Emphasis on analysis.

Tue, 08/11/2009 - 11:15 | Link to Comment Assetman
Assetman's picture

And you wanna know who the "selling shareholders" are that total 12 million?

Martin Cohen - 6 million shares

Robert H. Steers - 6 million shares

Once the two are through dumping, they will have more than halved their original holdings.

It's a pretty bold thing to add 10 million in new shares to the mix-- but the pattern really isn't that much different than Internet bubble stocks in 1999.

This is the beginning of the end of CRE, folks.

Tue, 08/11/2009 - 10:37 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:03 | Link to Comment deadhead
deadhead's picture

I would add to that the sincere apology proffered by Lloyd Blankfein. 

I think everything is going to be alright now.

Tue, 08/11/2009 - 10:41 | Link to Comment Anonymous
Tue, 08/11/2009 - 10:56 | Link to Comment Assetman
Assetman's picture

What I think is laughable is CNS doing a massive secondary after participating as an primary investor in the last REIT issuance wave this spring.

Classic pyramid scheme.  Those participating in this secondary are going to be left holding a huge bag of smelly stuff.

Tue, 08/11/2009 - 10:43 | Link to Comment Anonymous
Tue, 08/11/2009 - 10:43 | Link to Comment Anonymous
Tue, 08/11/2009 - 10:49 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:07 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:32 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:19 | Link to Comment Groty
Groty's picture

It's been reported Bush's first choice for Treasury Secretary was Paulson.  Paulson declined.   After appointing an aluminum company CEO who was a flop, Paulson was asked again.  Again, he declined.  Next came the railroader who also flopped.  Now the Bush team was desperate for someone with real finance experience, and Paulson finally gave in.  I don't know if history would have been different had he accepted the first offer, but his timing was absolutely terrible.

Tue, 08/11/2009 - 12:24 | Link to Comment Anonymous
Tue, 08/11/2009 - 12:47 | Link to Comment Anonymous
Tue, 08/11/2009 - 10:51 | Link to Comment Anonymous
Tue, 08/11/2009 - 10:51 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:06 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:36 | Link to Comment poydras
poydras's picture

Do as we say, not as we do...

Tue, 08/11/2009 - 15:19 | Link to Comment handsofmoney (not verified)
Tue, 08/11/2009 - 11:13 | Link to Comment Anonymous
Tue, 08/11/2009 - 10:53 | Link to Comment JohnKing
JohnKing's picture

I guess a waiver was the second best thing to immunity from review “by any court of law or any administrative agency”.

 

 

Tue, 08/11/2009 - 10:58 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:06 | Link to Comment zeropointfield (not verified)
Tue, 08/11/2009 - 12:09 | Link to Comment Anonymous
Tue, 08/11/2009 - 14:25 | Link to Comment Anonymous
Tue, 08/11/2009 - 10:58 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:03 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:05 | Link to Comment zeropointfield (not verified)
Tue, 08/11/2009 - 11:07 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:16 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:17 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:18 | Link to Comment Anonymous
Tue, 08/11/2009 - 11:33 | Link to Comment Anonymous
Tue, 08/11/2009 - 12:07 | Link to Comment Hondo
Hondo's picture

This is systemic to government itself.......we need a house cleaning and new rule of the house.

Tue, 08/11/2009 - 13:09 | Link to Comment Anonymous
Tue, 08/11/2009 - 13:14 | Link to Comment Anonymous
Tue, 08/11/2009 - 13:32 | Link to Comment Anonymous
Tue, 08/11/2009 - 16:00 | Link to Comment Big Al
Big Al's picture

What's wrong LB?  Did your lunch at the Four Seasons give you heartburn?

 

Don't you have more important things to do (like creating the next bubble) than monitoring "petit bourgeois" blogs?

Tue, 08/11/2009 - 17:15 | Link to Comment Anonymous
Tue, 08/11/2009 - 17:15 | Link to Comment Anonymous
Tue, 08/11/2009 - 17:15 | Link to Comment Anonymous
Tue, 08/11/2009 - 13:14 | Link to Comment zeropointfield (not verified)
Tue, 08/11/2009 - 13:21 | Link to Comment Milton
Milton's picture

Please inform www.nndb.com so they can update their nodes.

Tue, 08/11/2009 - 15:07 | Link to Comment zeropointfield (not verified)
Tue, 08/11/2009 - 14:02 | Link to Comment Cheeky Bastard
Cheeky Bastard's picture

awesome job TD in getting the document, BUT now comes the interesting part; in the original NYT article about HP and GS it is written that HP first got a waiver orally approved, and some time later in writing.Now what interest me is; was this piece of paper written on Sep. 17 as we can clearly see on the document, or was the document produced later with that date of an orally approval written on it. My point is;if, as NYT article states that the waiver was approved orally first,then in writing afterwards,how can we know that it was really approved on Sep 17, and how can we know that HP didn't contact LB and GS before from a private line to discuss the matter of AIG, LEH, BSC etc. 

 

OH and the NYT article is still available, but i haven't had my 6 red bulls yet so I'm barely functioning and i don't want to go to NYT page to look for it.

Sun, 06/13/2010 - 19:51 | Link to Comment Duuude
Tue, 08/11/2009 - 14:04 | Link to Comment Miles Kendig
Miles Kendig's picture

TD - This is yet one more fine example of how "Loyalty to the institution" is defined by those that lead our governmental and leading commercial institutions.  The only notable thing here is that Paulson actually has a paper trail.  Most folks just do this on the run.  Perhaps he was concerned that some folks within his and other institutions would be able to track his calling and travel patterns so he felt obliged to paper...

There is much more here than Paulson using the US taxpayer as a piggy bank to cover his and his firms backside.

I would suggest that any enterprising individual seek additional waiver information across government and "independent" regulatory institutions.  I am willing to wager that the results would be noteworthy.

Tue, 08/11/2009 - 15:20 | Link to Comment handsofmoney (not verified)
Tue, 08/11/2009 - 15:53 | Link to Comment Big Al
Big Al's picture

Looks like Hammerin Hank was spreading the Goldman gospel to India and China before becoming Treasury Secretary.   

 

If he was successful, the world economy is screwed.

 

Tue, 08/11/2009 - 16:13 | Link to Comment HankPaulson
HankPaulson's picture

An "Ethics Waiver" lol! (patent pending btw) What will we think of next?

 

But for those talking about legal action, please consider:

 

- I'm too big to fail

- the market is up, so what's your problem?

- my um "ethically waived" actions (not "crimes", please note) are too complicated for you to understand.

- a court case could precipitate a systemic crisis of confidence, where people begin to doubt if their years of greed and corruption will be rewarded with obscene amounts of money at taxpayer expense. Let's not go there.

- be positive. You have the Greatest, the Biggest um acquirer and transferer of national wealth <***ETHICS WAIVER***(TM)> in the history of the world! <cue national anthem>

Tue, 08/11/2009 - 20:31 | Link to Comment Anonymous
Tue, 08/11/2009 - 22:28 | Link to Comment HankPaulson
HankPaulson's picture

Bank Teller: Next!

Secretary of Treasury: Hand over your cash.

Teller: Help! Police!

Secretary: Wait! I have an ethics waiver. Look ...

Teller: Ooooooh! That's fine then. The vault is right over here. Have a nice day! :)

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