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Yesterday I satirically noted that what Washington really needs is another Goldman executive in a position of power. But today I read that Bob Hormats, a Goldman vice chairman, was involved in an IPO for PetroChina, which has Sudanese holdings. He claimed, at the time, that none of the money would be used to work in Sudan (do people not understand that money is fungible and scarce? The claim is absurd on the face. Even if PetroChina used none of that money for work in Sudan, it would free up other money to be used in Sudan). However, even if you ignore how money works, it turns out Hormats lied: - These statements later proved to be inaccurate and misleading. Several large institutional investors, including Harvard, have since divested from PetroChina, citing human rights concerns.
- The SEC later cited Hormats’s remarks as evidence of illegal market tampering, or “market conditioning,” in a larger case against Goldman Sachs, which the bank settled for $2 million.
I hate to be a stickler, but this is a bit more serious than just being a Goldman boy. Lying to help fund genocide may be business as usual for some folks, but I'd like to think it still disqualifies someone to serve in the Obama administration. Since I'm guessing the Obama administration doesn't agree (pretty sloppy due diligence if they didn't know) I hope the Senate does and refuses to confirm Hormats. (And if Hormats wishes to claim "I didn't know", then I'm willing to take him at face. In which case, he's not a liar, he's a fool with bad judgment, and still doesn't deserve to be confirmed.)
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