The government is not just in bed with community activists and labor unions. Their new partner in crime: Wall Street. How is that possible? Isn't the administration publicly lambasting one Wall Street exec after another? Thomas Paine, haven't you been arguing that Obama's sole purpose for existence is to redistribute the wealth? Well, yes, but you need to understand what is and has been going on behind the political scene.
Remember Henry Paulson? Paulson was CEO of Goldman Sachs before becoming Bush’s Secretary of Treasurer. As a result of this insider connection, the firm benefited when Paulson elected not to save rival Lehman Brothers from collapse, and when he organized a massive rescue of AIG while in constant telephone contact with Goldman chief Blankfein. With the Federal Reserve Board's blessing, AIG later used $12.9 billion in taxpayers' dollars to pay off every penny it owed Goldman. The result: $6 billion in the pockets of Goldman Sachs.
These decisions preserved billions of dollars in value for Goldman's executives and shareholders. For example, Blankfein held 1.6 million shares in the company in September 2008, and he could have lost more than $150 million if his firm had gone bankrupt.
"Okay," you say. "It isn't surprising that Goldman Sachs was in bed with the Bush administration, but President Obama's different." Really?
Goldman Sachs was second only to the University of California among Obama's top donors. While the organization itself did not donate the money, such donations were made either through employees, owners, the immediate families of such members and/or through the organization’s PAC. During the 2008 campaign, those at Goldman Sachs donated $955,473 to the Obama campaign
In addition, Treasury Secretary Timothy Geithner named Mark Patterson, a former Goldman Sachs lobbyist, as a top aide. Last December, reports Mr. Geithner favored Goldman Sachs surfaced when the New York Times Editorial Board questioned the motivation of then New York Federal Reserve President Geithner’s decision to let Lehman Brothers fail. Two days after that decision, he advocated for the bailout of AIG and its counterparties.
Add to the mix a September meeting Geithner arranged to discuss the AIG bailout. Goldman Sachs CEO Lloyd Blankfein was the only Wall Street leader at the meeting. At the time, Goldman Sachs was AIG’s largest trading partner.
During the campaign, Mr. Obama had strong connections with Goldman Sachs, as he was invited to a private Goldman Sachs dinner in May 2007. When it came time to name a vice presidential running mate, Mr. Obama turned to Goldman Sachs Board Member James Johnson. Mr. Johnson was forced to vacate the post due in part to this controversy.
Obama also appointed William Dudley, a partner and managing director of Goldman Sachs as President of the New York branch of the Federal Reserve (the chairman of the Board of Directors, Denis Hughes is the current president of the New York State AFL-CIO - go figure). Obama also traveled to New Jersey and stumped five times for Jon Corzine's campaign for governor. Corzine is the former Chairman and Co-CEO of...you guessed it!...Goldman Sachs.
What does this all mean? Together with Big Labor, Goldman Sachs is the single most important political player right now. While the Administration demonizes certain Wall Street execs (read: anyone at AIG), no one has directed any criticism towards Goldman Sachs. They do not oppose the government's threats to dramatically increase regulation of the finance industry because the fix is in: they have Obama and Geithner in their pocket and a former Goldman Sachs lobbyist in the SEC's enforcement division. They probably think they are pretty untouchable right now. Their only task right now is not to earn returns for their clients, it is to curry favor with the administration so that they remain unscathed and, as their competitors fall into disfavor with the government, they will enjoy all the protection that a government-created monopoly can provide.
They need to be taken down, brick by brick. You liberals out there: I don't care if Obama is your guy - you can't possibly approve of this corruption. Get these guys the hell out of government - NOW. Write your Congressman. Tell her or him that, if they accept one dollar of money from anybody from Goldman Sachs, you will vote for their opponent. Demand turnover at the highest levels of the SEC. Tell your friends about this BECAUSE NO ONE IN THE NEWS IS COVERING IT.
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