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Should Hank Paulson Be In Jail?
Leading bank analyst (and Zero Hedge columnist) Chris Whalen has raised the question of whether criminal charges should be brought against former Treasury Secretary Hank Paulson.
Any discussion of whether Paulson committed unlawful actions as Treasury Secretary needs to start with Tarp.
As the New York Times wrote last year:
In retrospect, Congress felt bullied by Mr. Paulson last year. Many of them fervently believed they should not prop up the banks that had led us to this crisis — yet they were pushed by Mr. Paulson and Mr. Bernanke into passing the $700 billion TARP, which was then used to bail out those very banks.
Indeed, Congressmen Brad Sherman and Paul Kanjorski and Senator James Inhofe all say that the government warned of martial law if Tarp wasn't passed:
That is especially interesting given that the financial crisis had
actually been going on for a long time, but - instead of dealing with it
- Paulson and the rest of the crew tried to cover it up and pretend it
was "contained", and that it was obvious to world leaders months earlier that it was not a liquidity crisis, but a solvency crisis (and see this).
Bait And Switch
The Tarp Inspector General has said that Paulson misrepresented the big banks' health in the run-up to passage of TARP. This is no small matter, as the American public would have not been very excited about giving money to insolvent institutions.
And Paulson himself has said:
During the two weeks that Congress considered the [Tarp] legislation, market conditions worsened considerably. It was clear to me by the time the bill was signed on October 3rd that we needed to act quickly and forcefully, and that purchasing troubled assets—our initial focus—would take time to implement and would not be sufficient given the severity of the problem. In consultation with the Federal Reserve, I determined that the most timely, effective step to improve credit market conditions was to strengthen bank balance sheets quickly through direct purchases of equity in banks.
So Paulson knew "by the time the bill was signed" that it wouldn't be used for its advertised purpose - disposing of toxic assets - and would instead be used to give money directly to the big banks?
Senator McCain also says that Paulson pulled a bait-and-switch:
Sen. John McCain of Arizona ... says he was misled by then-Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke. McCain said the pair assured him that the $700 billion Troubled Asset Relief Program would focus on what was seen as the cause of the financial crisis, the housing meltdown.
"Obviously, that didn't happen," McCain said in a meeting Thursday with The Republic's Editorial Board, recounting his decision-making during the critical initial days of the fiscal crisis. "They decided to stabilize the Wall Street institutions, bail out (insurance giant) AIG, bail out Chrysler, bail out General Motors. . . . What they figured was that if they stabilized Wall Street - I guess it was trickle-down economics - that therefore Main Street would be fine."
Even the New York Times called Paulson a liar in 2008:
“First [Paulson’s Department of Treasury] says it has to have $700 billion to buy back toxic mortgage-backed securities. Then, as Mr. Paulson divulged to The Times this week, it turns out that even before the bill passed the House, he told his staff to start drawing up a plan for capital injections. Fearing Congress’s reaction, he didn’t tell the Hill about his change of heart.
Now, he’s shifted gears again, and is directing Treasury to use the money to force bank acquisitions. Sneaking in the tax break isn’t exactly confidence-inspiring, either.”
What tax breaks is the Times talking about? The article explains:
A new tax break [pushed by Treasury], worth billions to the banking industry, that has only one purpose: to encourage bank mergers. As a tax expert, Robert Willens, put it: “It couldn’t be clearer if they had taken out an ad.”
Tarp is just one of Paulson's shenanigans as Treasury Secretary. And Paulson's acts as head of Goldman Sachs are beyond the scope of this essay.
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Does a Bearnanke shit green paper in the woods?
But, we must remember, Ben Bernancke, TIME person of the year saved our precious economy..........or so I have read in these hallowed archives
Hank Paulson was a leading advocate of the self enforcement mechanism of the street. He just might be proven right in the end.
Right.
But what about the pitchforks and rope?
Hank needs to have his other 9 fingers busted .....This Lying Thief , first got a $500 million tax free sale of his GS stock when he became Secretary and then lied regarding TARP , and then pulled the shell game of backdooring the AIG bailout money back to GS......his actions were Treason and he should be hanged .....The Moral Hazard he allowed to spread like cancer, has basically killed the future of the Republic
The day he showed up in Congress demanding total power and total immunity he should have been taken out in leg irons!
Somehow Rene-Thierry Magon de la Villehuchet and Mark Madoff have earned a little of my respect.
How 'bout it, Hank?
I love this thread, have been saying this since the first moment I read Hank's first draft of the TARP bill.
http://www.nytimes.com/2008/09/21/business/21draftcnd.html
My favorite provision:
"Sec. 8. Review.
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."
Folks, meet unfathomable arrogance and insatiable greed.
I can only hope he graces an cell in Allenwood some day.
Having worked the BOP in that area I suggest Allenwood is just too nice for him. Send that ass to D block at Lewisburg, if not the ADX. NG tube him for feeding, daily. No rec, letters, phone calls, visits, books, magazines or work. Nothing coming but a bag squeeze, 10 stand up counts a day, lights 24/7 & a 2 minute cold water shower three times a week
Q: Should Paulson be executed immediately?
No: 0%
Yes: 37%
Hell Yes: 63%
Q: Should Bernanke be executed immediately?
No: 0%
Yes: 34%
Hell Yes: 66%
Q: Should Bush and Obama be executed immediately?
No: 0%
Yes: 12%
Hell Yes: 88%
Q: Should the government of the USSA shut down?
No: 0%
Yes: 11%
Hell Yes: 89%
Note: Values are rounded to the nearest integer.
Note: Sample size == everyone with half a brain or more.
"In retrospect, Congress felt bullied by Mr. Paulson last year. Many of them fervently believed they should not prop up the banks that had led us to this crisis — yet they were pushed by Mr. Paulson and Mr. Bernanke into passing the $700 billion TARP, which was then used to bail out those very banks."
These invertebrates want our sympathy for being lied to? ROTFLMFAO! That is rich!
If these guys were not even able to understand that it might not be a great idea to give the banks who ruined the country tax money, then tell me, what the hell are they good for? They made a choice to believe what Paulson was telling them.
Honestly, these guys are crying about being 'bullied'? Give me a fucking break. If they really believed that they should not prop up the banks, why the hell did they vote yes? I swear, we need us some pitchforks and torches.
Thanks for the article GW, although it truly ignited my ire. Yes paulson should be in jail, and any congress critter who caved to his threats should not be allowed to hold any office more powerful than PTA treasurer.
Amen.
That's not all.
The phones of congressmen and senators were ringing off the hook, and voters were saying NO to TARP by a 99% to 1% ratio. Even liar predator extraordinaire NancyPelosi said the calls her office received where over 95% against. If that isn't enough support to help them "just say no" to Paulson, then what the freaking hell would be?
Right!
Isn't it funny how all of thosee congressmen and women sudddenly felt so compelled to "lead," despite the express wishes of the American people?
Exactly! We don't hire these bastards to think and form opinions, although it was sweet of them to try and go above and beyond their job duties. Still, they've fucked everything up, so maybe they should just stick to the basics. They're supposed to be a representation of the will of the constituents. I guess it isn't surprising though if you're honest with yourself about who calls the shots in this country.
Leading the way to Dick's sporting goods for fresh pairs of elbow & knee pads.
THe asshole was so conflicted he should have never been in a positon to write his former company a fuking mutli billion $ check and take out 3 of its competitors at the same time. The same logic applied to tha ass sukking Gooldman board member on the NY FED that bougth GS stock on the insider info he got while being at the FED.
Fukking crimes everywhere while the SEC hunts little fish....thanks for the post WB
The memo I got said jailing Julian Assange will deal with all of it.
No leaks no crime no jail. The Attoney General is on it.
Should Hank Paulson Be In Jail?
[X] Yes
[ ] No
Is water wet?
Of course Paulson should be arrested, tried and hung... for treason, for massive fraud, for crimes against humanity, for blatant and intentional conspiracy... need we continue.
However, everyone who has worked for the FederalReserve since 1914, and likely every executive of every large bank or financial organization for the past 20 years, and every president and high ranking official in the federal government of the USSA for 40 years deserves the same.
Every single one of these cretins spends his or her days lying, cheating, deceiving, and defrauding the people he works for (regular folks), and working to enslave them to the predators-that-be and the predator class.
Sadly, to do justice at this point, at least several million people in government need to be tried and hung for treason and crimes against humanity. And yes, this most certainly should be done. Fat chance.
If you haven't at least TRIED to kill your congressman, you're not helping. It's something you can attempt locally when they're in town, every other year during campaign season.
As yoda said, "No, no. There is no try... there is only do".
My preferred option would be to see them all put into a giant vat with three inches of concentrated sulfuric acid in it, and watch as they slowly, SLOWLY dissolve down into it, inch by inch, screaming in pain all the while.
You are much, much too kind. Really.
Nonetheless, getting rid of them is what matters most.
I suppose the real point is this. Since the federal government of the USSA, and apparently all state governments too, have totally abdicated their most important duty --- to protect us from predators, including themselves) --- it should be open season on politicians, banksters, new world order elitists, and their apologists (most certainly including mainstream media).
Hank Paulson almost certainly gave Bill Gross the green light to purchase GSE bonds, letting him know the backing would be made explicit(er?). Insider trading charges to start with.
Perhaps an attorney should charge the group of them with various criminal offences and test the validity of the charges in several trials. The answers will come after a long series of courtroom debates.
Strangely enough, all the newly elected people who wanted Washington changed have become silent, and they were great crusaders until the vote was counted.
That they did not investigate
who requested the listing of far out of the money Bear Stearns Puts and who purchased them is the smoking gun which relieves all of us from any obligation to follow the "law".
Jamie Dimon's statement that all people evicted "deserved" it is an invitation to all of us to follow that same code- no rule of law needed, just give them what they deserve. A trial for treason, to start.
Someone who hold hostage a country by theating everyone. Is a terrorist?
Shhh!
And BTW it is pronounced "terrist"
I've always enjoyed George Washington's columns. Very deep and well structured. This one too fits the bill.
I sympathisize with the premise of this article, unfortunately, it's not just Paulson that would need to be under the microscope. Let's not forget that congress turned a blind eye to his activities. Any charges brought against Paulson would line congress up against the litigants.
The Fed was also in the know of what Paulson was doing and were complicit. In fact, they too have stretched their responsibilities all "for the sake of the economy".
I think a more pointed discussion about Paulson should focus on his being CEO of Goldman Sachs in 2004 when he lobbied Bush hard for liberalizing the banking laws so they could leverage up more, and then becoming treasury secretary to protect the mess he made and the people he made it with. The clear conflict of interest is ENORMOUS.
If the TBTF fell, his own personal wealth would tank since he still held so much Goldman Sachs stock.
Another very clear conflict of interest that related his holding of Goldman Sachs stock was his engineering the failure of Lehman Bros, the biggest competitor of Goldman Sachs. Removing their biggest competitor ensured high prices of GS, and his, stock.
The corruption really has no bounds, and congress, on the payroll of the banks, are complicit. Our democracy is not functioning well at all, and the government is viewing people like us as a threat.
We're not the threat, we're just pointing out what most of the people don't see. In the end, the system will fail, and those at the top that made it happen will hide with their fat bank accounts while the rest of us fight for the scraps.
Should Hank Paulson Be In Jail?
[X] Yes
[ ] No
When this all ends badly as we believe it will ... Paulson will get his just due. Bernanke and Paulson can share the same rotting cell.
.
Finally a government law I can get behind.
Sorry, I deleted my post about the Coinage Act.
It only calls for the death of mint employees who debase the currency.
I don't think it can apply to Paulson.
A lot of people should be indicted and most likely go to jail and Paulson is one of them. So is Ben Baranke, Tim Geithner, Jamie Dimon and everyone else who was at the New York Federal Reserve luncheon on March 11th, 2008 when it was decided to take Bear Sterns down. It was clearly a RICO violation and anyone who was there or aided and abetted the actions of that meeting are co-conspirators and just as guilty.
Paulson wasn't there, but certainly played a major part in securing the destruction of Bear and leading some major naked short player a nearly $300 million payout on a $1.7 million short term bet on the failure of Bear, the benefactors of whom no one wants to find,... which is an indictment of the entire Federal Prosecution branch (executive) of government.
Here I'm listening to the talking heads on TV ranting about insider trading of some dozens of violators covering a few billion tops while ignoring the biggies, right after they talked about Julian Assange's legal problems which they took great pains to paint in the worst possible light in keeping with America's Kleptocracy elitist rulers.
Time for the New American Revolution if we ever have any hope of freeing all of America. It's coming my friends as historically governmental bankruptcy's are called Revolutions. Our problem is to be prepared with the corrections in the course of our government if we are to be successful. Don't think for a moment that the ruling elite don't know its coming and they have their own plan which, if there is only a vacuum once the old is gone, has a good chance of success.
Banzai,
You have an awesome collection on youtube.
http://www.youtube.com/user/TAFNACV#p/a/u/2/t1XR_DXPSDQ
Grreaatt! I think that really deserves a nomination for the WB7 Hall of Fame.
Oh, and in case the FBI, Justice Dept, or any moral and/or legal authority should be reading this with the intent of bringing Mr. Paulson to justice, may I provide his office address for you...it is:
John's Hopkins University, SAIS Campus
1740 Massachusetts Ave
Washington, DC 20036
So, now dearly beloved law enforcement, should you at all be even remotely interested, you know where to find him. May I beg you however not to go in guns-a-blazing, because there are wonderful students and professors from every country on earth in that building....which makes it the perfect place for one bad wolf to hide amongst a building full of kind, good and decent innocents. It's like Al Capone setting up an office in a Nunnery, or a Mosque.
Hey now ZH, in all seriousness, we know that this man will never be investigated, let alone charged or prosecuted. After all, just read his book "On the Brink." According to the Hankenstein Hankster himself, we should be THANKING him because if it wasn't for him there would presently be a 25% unemployment rate.
So, to my overlords and uberlords in the American law enforcement world, I say that as a loyal and patriotic citizen, I hereby nominate Hank Paulson for the Congressional Medal of Honor as he is obviously the finest human being the USA has ever produced in my lifetime. Thank you Hank Paulson!
...I bet they already have a special place built just for me in a FEMA camp somewhere....
Awesome work, but its too fast, re-edit and make the fonts larger.
This was my first video story which I did using utube's online annotation software. It is a major pain in the ass getting the story to time right with the music etc.
The second episode is really funny.
Jail would be much, much too kind for this treasonous scumbag, in my opinion.
Finally its being talked about! He deserves jail or more... hopefully more! He had countless conversations during that year with Blankfein on Treasury phones... then a year later in his book when asked about them he said they were just about family stuff and all but he couldn't provide them because someone at Treasury had accidentally destroyed them. This from a scumbag who worked in the Nixon White House for John Erlichman during the Watergate scandal... right while Rosemary Wood was erasing another set of tapes. He learned his craft well the sleazy piece of crap.
How about the DoJ subpoena all his personal cell and house phone records... oh, that's right, we don't have a US AG to get the ball rolling, he's too busy hiding under his desk at Obama's orders.
Hire some Russian Mafia torture type and see if he can set a new record for how long he can keep Paulson in pain while removing parts of his body... yet still keeping him alive for as long as possible. Yes, that should be the appropriate penalty.