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Ear to the Ground

Big Money for Goldman Sachs

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Posted on Jul 14, 2009
GS building
taisha.org

Fresh off the bailout, Goldman Sachs raked in $3.44 billion in net profit this quarter, beating analysts’ already high expectations, and the firm’s success will pay off for employees in the form of generous bonuses. Not surprisingly, pro-Goldman types think this is all good news.

BBC:

Some have raised questions over whether it is right that a bank make such profits and pay hefty bonuses so soon after receiving government loans.

But analyst William Smith, of Smith Asset Management said: “Goldman should be celebrated, not demonised.”

“Things are very fragile but they manage to make money in all environments, which is what you’re supposed to do,” he added.

Goldman’s chief financial officer David Viniar said: “We are helping the economy to recover”.

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By John Hanks, July 16, 2009 at 6:05 pm Link to this comment
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If something like Goldman Sachs is tainted by crime, it should be confiscated.  We do the same with drug dealers.

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By gerard, July 15, 2009 at 8:44 am Link to this comment
(Unregistered commenter)

Knute is correct. I will add, that G S pretty much runs our government annyway. Who’s going to do anything about it? Ever herd of the Plunge Protection Team? (They rule),and we can only fix things by kicking their Fat buts

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By John Hanks, July 15, 2009 at 6:14 am Link to this comment
(Unregistered commenter)

It’s all about rackets and a license to steal.  Tax the brazen crooks with extreme prejudiice.

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By DBM, July 15, 2009 at 12:33 am Link to this comment

I don’t often repeat myself but I wrote this earlier today and it seems even more appropriate in this discussion:

I am no expert but it seems that there has been a none-to-subtle shell game here.

The large merchant banks were not federally insured by the FDIC and so did not have to follow banking rules.  They insured themselves through this thing called the American Insurance Group (yes AIG). 

When AIG was given money it went straight to paying off the big merchant bankers who had gotten themselves in trouble by not following any rules.

Now, the big merchant banks also wanted direct government money to bail themselves out as if they had been insured by the FDIC so they petitioned to “become banks”.  This was granted despite the fact that their operations did not and do not adhere to FDIC regulations AND the insurance was to cover previously incurred liabilities as well.

So, these banks (Goldman Sachs et. al.) took:

1. A direct bailout

2. A bailout through AIG

3. A bailout through instant membership of the FDIC

Many of the banks (Goldman Sachs for instance) have now returned bailout No.1 so that they can avoid any future regulation or transparency that would have come with it.  They can do this because they have secured No.‘s 2 & 3 and don’t need the direct bailout anymore.

So ... the bankers have taken a large amount of government (read taxpayers’) money and have avoided any oversight or regulation by paying a small “profit” on a small part of what they received.  The rest they seem to be using to pay themselves the biggest bonuses ever and lobbying to ensure that there is never any regulation they don’t like (including restrictions on compensation or tying compensation to the genuine interests of their shareholders ... let alone the public!).

“Great Work if You Can Get It” indeed ...

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By 911truthdotorg, July 14, 2009 at 9:02 pm Link to this comment

Goldman Sucks!

This an interview of former Assistant Secretary of Treasury Paul Craig Roberts. At 2:40 (of the 3:08 interview) was this exchange:

http://crooksandliars.com/susie-madrak/paul-craig-r oberts-geithner-works-gol

Max Keiser: “Does the US Secretary of the Treasury work for the people or does he work for the banking system on Wall Street?”

Dr. Paul Craig Reports: “He works for Goldman Sachs.”

Max Kaiser: Financial Controlled Demolition just like 911
http://www.youtube.com/watch?v=4PJk_73hjVQ

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By Stephen Smoliar, July 14, 2009 at 5:47 pm Link to this comment

Viniar SO deserves my Chutzpah of the Week award!

http://therehearsalstudio.blogspot.com/2009/07/im-all-right-jack.html

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By John Hanks, July 14, 2009 at 4:49 pm Link to this comment
(Unregistered commenter)

Goldman Sachs people should be sentenced to travel all over the country teaching the rest of us to steal.  That might get rid of a few suckers.

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By KNUTE, July 14, 2009 at 4:03 pm Link to this comment
(Unregistered commenter)

Just more of the same isn’t it. There is a quote from the late Frank Zappa…that is right on the mark. “Politics is the entertainment branch of goverment”. As long as the public is made to believe that the battle waged is between republicans and democrats then the status quo is safe to continue looting. Haven’t people recognised by now how little difference there is between what the dem.s or republicans actually do back in Wash DC ? The media does its part in keeping us UN-informed as to the true nature of the beast. It isn’t about repub.s vs democrats, thats just the distraction. Its about the rich white greedheads that are really calling the shots. Many of these same folks have or are holding some of the highest positions in our goverment ( like the treasury & former Sec. of treasury Paulsen of Goldman Sachs or Larry Summers ) These same people who are tanking companies and leaving with millions in rewards while everyone else suffers. Who have spent years supporting both sides of the isle to remove regulations put in place generations ago. The same folks who have been in charge all along. We can’t find a solution to our economic problems untill we wake up to who the enemy is.

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