Saturday, May 09, 2009

The overtly conflicted relationship between Washington and Goldman Sachs

On Monday I started a two part piece on the relationship between Obama and Goldman Sachs, particularly how the Obama Administration seemed perfectly happy to continue pretending that Goldman Sachs was a financially stable company... not in need of any bailouts... and one that should be revered.

Then on Thursday I credited Senator Chris Dodd with having helped end one of the most conflicted relationships between Obama and Goldman Sachs. Namely, the fact that Stephen Friedman was a director of Goldman Sachs and a "public interest" director (and Chairman) of the New York Federal Reserve Bank.

Anyway, keeping track of all the financial developments is tough for me because there's a lot of information to digest. Regardless, by the time Friedman resigned on Thursday I was figuring Dodd was a significant factor. In retrospect though, while I'm sure Dodd's pressure helped... it seems apparent to me now that it was the Wall Street Journal's front page story last Monday that led to Friedman's resignation on Thursday.

Regardless, good riddance. I'm thoroughly disgusted with how Wall Street is running Washington. Even Dick Durbin admits it!

And for those of you who are unaware of the funny business between Goldman Sachs and Washington, here's a sampling:

1) House Banking Chairman Barney Frank's former Chief of Staff is now the chief lobbyist for Goldman Sachs;

2) Treasury Secretary Tim Geithner's current Chief of Staff came to him from being the chief lobbyist for Goldman Sachs;

3) Former Treasury Secretaries Hank Paulson and Robert Rubin both came from Goldman Sachs;

4) When AIG got their initial $85 billion bailout last September 15, no one knew where that money went. But after six months of journalists FOIing the Treasury Department and a court-imposed disclosure deadline, AIG finally revealed the beneficiaries of the first $85 billion. The number one recipient? Goldman Sachs! And of course;

5) Goldman Sachs Director Stephen Friedman also was the Chairman of the Federal Reserve Bank of New York (there are 12 privately-run regional Federal Reserve banks under the Bernanke Chair'ed Federal Reserve Board of Governors)...

Among numerous other issues of funny business.

This stuff has got to end. I say kill the Fed before it kills the dollar with its inflationary monetary policy.

Tim White


Anonymous said...

Tim White is an idiot

Anonymous said...

I notice that someone has been spamming "Tim White is an idiot" on several posts, even on the Mother's Day post.

Dear Spammer: by all means run for Council as a Democrat! They're looking for people of your 3rd Grade intellectual capacity who just give the finger instead of discussing the substance of issues.

You'll fit perfectly into their programs of no fiscal impact studies, put-nothing-in-writing, ask no questions, and vote as we tell you.