BLOOMBERG NEWS: Paulson Plan To Mostly Benefit His Old Cronies at Goldman Sachs

by: David Sirota

Tue Sep 23, 2008 at 10:03


You can't make this stuff up:

Paulson Debt Plan May Benefit Mostly Goldman, Morgan

Sept. 22 (Bloomberg) -- Goldman Sachs Group Inc. and Morgan Stanley may be among the biggest beneficiaries of the $700 billion U.S. plan to buy assets from financial companies while many banks see limited aid, according to Bank of America Corp.

Paulson, you might remember, came to the Treasury Department right from a top job at Goldman Sachs. Oh, and remember the part about my In These Times article yesterday about the Paulson proposal giving him carte blance to overpay for worthless mortgages? Check this out:

Bank lobbying groups today asked Congress and the U.S. Securities and Exchange Commission to suspend a rule that forces companies to put a price on difficult-to-value assets such as subprime mortgages.

In other words, they want a rule so that they don't have to publicly price the worthless mortgages - so that when the bailout comes, the taxpayers can be forced to overpay for them. As Oregon Rep. Peter DeFazio (D) said, this is a clear instance of Congress  being "rolled by a Wall Street executive who is masquerading as the secretary of the Treasury."

David Sirota :: BLOOMBERG NEWS: Paulson Plan To Mostly Benefit His Old Cronies at Goldman Sachs

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Wealth Tax Now! (4.00 / 1)
So what de Fazio should be talking about is what needs to be done to make sure that the taxpayer cash which Paulson and his pals are in the process of running off with goes right back to the treasury in the form of a wealth tax.

Slap on an 80% tax on all accumulated intangible assets above $50 million and there will be a significantly reduced incentive for him to do so.

Not to mention plenty of cash to support foreclosure relief, shore up credit markets, etc. all without increasing the debt.

Has DeFazio considered this option?

if not, he's not serious.


Nationalize capital (0.00 / 0)
Instead of nationalizing failing industries, we could nationalize capital (through a wealth tax) and use this money to fund programs that help people (healthcare, childcare, education, social services) and important new technologies (like energy conservation, renewable energy). We could even reduce taxes for most Americans.

[ Parent ]
Paulson should resign (4.00 / 1)
Instead of making Henry Paulson the Treasury Czar, accountable to no one, he should resign in disgrace for his miserable record over the past 2 years and for this unconscionable bailout "plan" that is essentially a blank check for his investment company buddies.

the dems (0.00 / 0)
have become part and parcel of the gop mob, cya has become the dem mantra and the hell with the voters, talk is cheap and the dog and pony show going on in the senate is nothing more then a photo op to convince the public that this fleecing of the taxpayers treasury is in the best interests of everyone when it is only in the interests of the wealthy elite criminals that have run america since the great communicator ruled the roost.

if bs was money paulson could bail out ws himself withoout using treasury money.


There is also the possibility (0.00 / 0)
that the Fed itself is overextended and needs the dictatorial powers to hide the fact, at least according to one central banker.  See Jerome a Paris' diary at DK.

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