Goldman Sachs // Current

Congratulations! You’re Donating $2,000 per Family to Wall Street’s Bonuses « SpeakEasy

President Obama won’t tell us in his State of the Union address. The deficit hawks won’t crow about it. Don’t expect the Tea Party or Rush and Beck to highlight our generosity either. But the sad fact is this: During the worst year since the Great Depression, with 30 million people out of work or forced into part-time jobs, Wall Street is awarding itself $150 billion in bonus money…..and it comes from us!

That’s $500 for every man, women and child in the country — $2,000 for a family of four. (Maybe we should try deducting it from our income taxes as a charitable donation.)

Had we not bailed out the financial sector, there would be no bonus pool this year. Zip, zero, ziltch.

It seems like financial Alzheimer’s setting in as many forget how all this happened. Wall Street, and no one else, crashed the economy through its fantasy finance extravaganza. It created, sold and traded a slew of newfangled financial instruments that were supposed to remove risk from risky investments. Wall Street went begging for subprime debt in order to create and market their new financial securities, the most profitable activity in their history. As a result of their securitization casino, which leveraged bet upon bet, the housing market turned into a bubble and finally burst. Wall Street had miscalculated, big time. The risk returned with a vengeance.

Not matter what Rick Santelli proclaims, government interference didn’t cause the crash. Greedy, stupid home buyers didn’t cause the crash. Poor people backed by the Community Reinvestment Act didn’t crash the system. And China didn’t cause it either. The book should be closed on this: Wall Street’s fantasy finance casino did us in. (Please see The Looting of America for a fuller account.)

Once housing prices stopped their meteoric rise, the entire precarious structure of bets piled upon subprime loans, turned toxic. The banking system froze and the real economy was tossed off a cliff. We truly were on our way to the next Great Depression.

Policy leaders of all stripes bailed out the financial system because they thought there was no choice–and that was true to an extent. Preventing total financial collapse was necessary. The choices to be made were about how to prevent a further collapse and what kinds of demands we’d make on the banks that had brought disaster upon themselves and the rest of us. Bush, Paulson, Bernanke, Obama, Geithner, Summers and Congress made their choices. They poured money into the banking sector like never before. We gave the Wall Street banks gigantic loans and enormous guarantees on their toxic assets. We gave them TARP. It all totaled to more than $12 trillion, with most of it still in play, even after the TARP repayments. (See Nomi Prins’s excellent accounting..)

We can, and should, argue about whether the bailout was put together properly. A strong case can be made that the victims (the public), rather than the perpetrators (Wall Street’s casinos), should have received our support. Clearly, there were much better ways to rescue the failing economy and produce jobs, which is still by far our number one problem.

Wall Street was saved from bankruptcy, including Goldman Sachs which now cavalierly insists that it didn’t really need the bailout money (yet it took $12.9 billion of taxpayer support via AIG, and tossed it into its bonus pool.) Wall Streeters actually think they’ve earned the $150 billion in bonuses through their own cleverness. Think again. It’s nothing more than taxpayer welfare.

Of course, no one wants to admit that we put the richest people in the world on welfare. It’s embarrassing to acknowledge that we are rewarding those who killed millions of jobs. And worst of all, our political establishment doesn’t have the nerve to take our money back.

More at the link:President Obama won’t tell us in his State of the Union address. The deficit... more

WeAreChangeKy
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Obama Plan May Cost Banks $13 Billion in Revenue, JPMorgan Says

Jan. 22 (Bloomberg) -- President Barack Obama’s plan to curb proprietary trading... more

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Move Your Money: Project Urges People to Stop Banking with Wall Street

following is a transcript of an interview with Robert Johnson by Amy Goodman for Democracy Now! about Move Your Money, a project to help people transfer their money from bigger banks into smaller, community-oriented financial institutions that generally avoided the reckless investments and schemes that helped cause the financial crisis. Robert Johnson is former economist at the Senate Banking Committee and the Senate Budget Committee. He’s now the director of the Economic Policy Initiative at the Franklin and Eleanor Roosevelt Institute.

Amy Goodman: So, Move Your Money, how did it come about?

Robert Johnson: Came about at a dinner. Eugene Jarecki, my wife Alexis and Arianna and I were talking about how frustrated people were that there was no legislative reform and there was no -- well, you might call “remorse” from the big bankers. So we started to just, how we say, bat the fat about what could be done. And we talked about how in past episodes people had sold stock, and in this episode, you could get people to move their money.

Why would they move their money when they’re happy with their services? Because they can get comparable services locally. Everything is insured by the Federal Deposit Insurance Corporation, up to $250,000. And they could stop this toxic side effect of derivatives lobbying and “too big to fail” lobbying that’s going on by the top five or six banks that --

Goodman: So, name names. Who are you saying people should -- which banks should they pull their money out of? And what banks should they put them into? Tell us what community banks are, but name the ones they should pull out.

Johnson: Citigroup, JPMorgan Chase, Bank of America, Wells Fargo and, to the extent that it’s asset management, Morgan Stanley and Goldman Sachs. Those are the six that have 97 percent of the derivatives markets. Those are the “too big to fail” institutions, or at least the large subset of the “too big to fail” institutions. But mostly, they’re the ones who are working very hard right now to stop Congress in the Senate from adequately reforming our financial system, which basically means they want to keep playing and making profit and have the taxpayer pick up the bill in the event of another—they hit another banana peel.

Goodman: And explain what community banks are.

Johnson: Community banks are small, regional or very much local institutions. Most of their activities, their lending activities and so forth, relate to the local region or community around which they collect their deposits.

Goodman: And how do know if you’re moving your money into a bank that’s not owned by one of the entities you just talked about?

Johnson: Well, that requires a little bit of research, but we do have friends at Institutional Risk Analytics that’s on this website, moveyourmoney.info, and they have rated all the FDIC call report banks, and they’ve separated out the big banks from the small, or what you might call the behind-the-scenes ownership, and given you a menu. If you plug in your zip code, it gives you a menu of the banks that they rate A or B, which is safe. And like I say, above and beyond that, you have deposit insurance. But those are the local banks that are independently owned, not owned by the big four to six.

More at link above:following is a transcript of an interview with Robert Johnson by Amy Goodman for... more

WeAreChangeKy
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SEC Engages in CONSPIRACY with AIG to Hide Bailout Evidence…With OUR MONEY!!! Read this Please…

AIG’s request for the SEC to hide details of the massive and unprecedented... more

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27 days ago
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COVER-UP!!! Bank Gate: Obama & Geithner’s Cover-up of the AIG Bailout

The New York Federal Reserve, under the direction of current Treasury Secretary... more

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Bankstergate: Geithner's Cover-up of AIG Bailout

Kurt Nimmo
Infowars.com
January 11, 2010

The New York Federal Reserve, under the direction of current Treasury Secretary Timothy Geithner, prohibited AIG from reporting that it was passing government bail-out funds directly to its buddies on Wall Street, most notably the criminal organization known as Goldman Sachs. More specifically, taxpayers were tapped (or their grand children were) to pay off bad gambling bets made by “counterparties” in the AIG derivatives casino. The mega-insurance corporation wanted banks to take 40 cents on the dollar against toxic CDOs (collateralized debt obligations). The banks turned to New York Fed mob boss Geithner who arranged an AIG sweetheart bailout with full knowledge the money would go to Goldman Sachs and the banksters to cover dollar-to-dollar protection of their gambling losses. Geithner did not report this to Securities and Exchange Commission on December 24. It was to be kept on the QT. In fact, before his confirmation hearings last year, Geithner was recused from matters dealing with specific companies and bailouts.

Last week details of this criminal conspiracy were fed into the corporate media spin machine. But instead of immediately arresting Geithner for grand larceny and having him do the perp walk in an orange jumpsuit like a common bank robber, it was suggested he merely be fired and another bankster crony fill his spot at the Treasury.

In fact, so-called lawmakers (who do not read bills before passing laws) support Geithner. On Sunday, Obama announced his unwavering faith in the former New York Fed boss, Bilderberg, CFR, and Trilateral member. “Secretary Geithner enjoys the strong support of the Senate Democratic caucus,” declared Senate Majority Leader Harry Reid (who is under fire for calling Obama a “Negro,” a crime of more importance to the corporate media than a gaggle of banksters stealing trillions of dollars). Democratic leaders including Representative Barney Frank and House and Senate Democratic aides all support the second-story man Geithner and his bankster bosses.

more at infowars.com (real alternative media)

That's Judge Andrew Napolitano, the patriot, not to be confused with Janet Napolitano, incompetent bureaucrat. Also, don't get the Judge twisted with Glen Beck, Benedict Arnold of Tea Party Movement, just b/c he subs on his show.Kurt Nimmo Infowars.com January 11, 2010 The New York Federal Reserve, under the... more

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Obama: I Didn't Run For Office To Help 'Fat Cat Bankers'

What is this guy talking about lol President Obama takes aim at "fat cat... more

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The American Ruling Class

This "astonishing," "coruscating" satire poses the question: Is it... more

Jenime
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2 months ago
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15 comments

The Story of Cap & Trade

Or, "Why you can't fix a problem using the thing that created it"... more

asherp
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2 months ago
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18 comments

Goldman Sachs Bankers Loading Up on Guns

"They are concerned about social unrest. They are concerned about the fact that... more

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2 months ago
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Matt Taibbi Pwns Bailout Apologist

From Morning Meeting Nov. 25, 2009, Rolling Stone's Matt Taibbi and the Financial... more

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Geithner Slammed in Scathing Bailout Report

A brutal study issued last week by a government watchdog holds Timothy Geithner --... more

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Tax havens & currency speculation Pt.4

Sony Kapoor on the rise of Goldman Sachs and the need to democratize the economy

therealnewsnetwork
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Goldman Sachs Cancels Christmas

Goldman has canceled its corporate Christmas party. Worse, they've also banned... more

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The Streetwise Professor Breaks Down SIGTARP and Tim Geithner

An in-depth look at some of the key arguments surrounding the AIG counter-party... more

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Goldman Sachs Plays at Giving Back to the Little People | Corporate Accountability and WorkPlace | A

Why aren't they in jail yet? Oh, I forgot, they own the law.

Monkey_Films
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Dina Powell on Goldman Sachs $500m Small Business Initiative

Goldman Sachs earned an eye-popping $3.2 billion last quarter. Now it’s decided to share some of that with the little guys. The bank said Tuesday that it is launching a $500 million initiative called “10,000 Small Businesses,” aimed at unlocking the job creation and economic growth potential of America’s small companies. The project’s advisory council features an array of business luminaries, including Warren Buffett, Goldman Sachs’ largest shareholder. Goldman CEO Lloyd Blankfein and Harvard professor Michael Porter will join Buffett in co-chairing the group.
(Cowley, S., 2009, November 17, par.1-2)

Goldman Sachs (GS, Fortune 500) said it will contribute $200 million for scholarships to community colleges and universities around the country. The money is intended to fund training and educational opportunities for underserved business owners. The bank is also setting aside $300 million to support Community Development Financial Institutions (CDFIs). Certified by the Treasury Department, CDFIs include banks, credit unions and investment funds that target low-income and otherwise disadvantaged populations. Goldman is seeking a return on some of its community development support: The bank said its CDFI investment will be a combination of loans and philanthropic donations.
(Cowley, S., 2009, November 17, par.4-6)

The “10,000 Small Businesses” project comes at a time when many banks — including Goldman — have pared back their small business lending. Over the last six months, Goldman has cut the balance of its outstanding loans to small businesses by $191 million, according to a Treasury report released this week. Goldman’s small business loan balance currently stands at $3.8 billion.
(Cowley, S., 2009, November 17, par.8)

Last fall’s financial meltdown had a cataclysmic — and lingering — effect on small business financing. The nation’s biggest banks have collectively shaved $10.5 billion from their small business lending balances over the past six months, and small business owners are struggling to get the credit lines they need to run their companies. Goldman Sachs’ CEO on Tuesday apologized for his bank’s part in contributing to financial meltdown. “We participated in things that were clearly wrong and have reason to regret,” Blankfein said at a corporate conference in New York. “We apologize.”
(Cowley, S., 2009, November 17, par.9-11)

Source:
http://www.cnbc.com/id/15840232?video=1335037571&play=1

http://money.cnn.com/2009/11/17/smallbusiness/goldman_sachs_warren_buffet_small_business/

http://theretailsector.wordpress.com/Goldman Sachs earned an eye-popping $3.2 billion last quarter. Now it’s decided... more

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Hundreds Converge on Goldman Sachs DC Headquarters

Today, hundreds of workers, clergy members, community leaders, and other taxpayers... more

WakeUpPeople
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Obama Administration denies Goldman Sachs $3 billion tax break

The Treasury Department told Goldman Sachs last week that it could not use Fannie Mae's tax credits to reduce its own tax liability. An official with the Obama administration explained that the proposal "would result in a loss of aggregate tax revenues that would be greater than the savings."

This is the right decision. Had the Treasury Department allowed Goldman to reduce its tax liability by using Fannie Mae's tax breaks, it would have potentially opened the door to a severe loss of tax revenue, as other profitable companies would likely have sought to follow suit.

As reported earlier, Goldman Sachs had offered to purchase up to $1 billion of low-income housing tax credits that Fannie Mae had itself purchased during the housing bubble but can no longer use. More recently, the Wall Street Journal reported that Warren Buffett had joined Goldman Sachs in a bid to purchase $3 billion in credits. The credits, designed to encourage additional investment in low-income housing, are useful only if the company claiming them is profitable. And with Fannie Mae currently a very unprofitable company, it does not have much use for the credits. It has lost $59 billion so far this year, and the U.S. government has already given Fannie Mae and Freddie Mac, its related government-sponsored entity, almost $100 billion since September 2008.

Goldman Sachs had portrayed its offer to purchase Fannie Mae's tax credits as a "win-win" proposition. It argued that Fannie Mae would benefit because it could take these credits, which are losing value by the day, off of its books, while Goldman would benefit by reducing its tax liability by the amount of the credits.

Unfortunately, Goldman failed to include the interests of the taxpayer in its calculations. For every dollar that Goldman saves, the government -- and, by extension, the U.S. taxpayer -- loses a dollar. This is hardly a win-win situation.

more at link...

http://www.politicsdaily.com/2009/11/09/obama-administration-denies-goldman-sachs-3-billion-tax-break/The Treasury Department told Goldman Sachs last week that it could not use Fannie... more

WakeUpPeople
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3 months ago
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Goldman Sachs receives 200 doses of Swine Flu Vaccine

Did I miss something? Since when has the CDC catered to the beck and call of... more

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3 months ago
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TAGS

tagged w/ Goldman Sachs

Congratulations! You’re Donating $2,000 per Family to Wall Street’s Bonuses « SpeakEasy

Obama Plan May Cost Banks $13 Billion in Revenue, JPMorgan Says

Move Your Money: Project Urges People to Stop Banking with Wall Street

SEC Engages in CONSPIRACY with AIG to Hide Bailout Evidence…With OUR MONEY!!! Read this Please…

COVER-UP!!! Bank Gate: Obama & Geithner’s Cover-up of the AIG Bailout

Bankstergate: Geithner's Cover-up of AIG Bailout

Obama: I Didn't Run For Office To Help 'Fat Cat Bankers'

The American Ruling Class

The Story of Cap & Trade

Goldman Sachs Bankers Loading Up on Guns

Matt Taibbi Pwns Bailout Apologist

Geithner Slammed in Scathing Bailout Report

Tax havens & currency speculation Pt.4

Goldman Sachs Cancels Christmas

The Streetwise Professor Breaks Down SIGTARP and Tim Geithner

Goldman Sachs Plays at Giving Back to the Little People | Corporate Accountability and WorkPlace | A

Dina Powell on Goldman Sachs $500m Small Business Initiative

Hundreds Converge on Goldman Sachs DC Headquarters

Obama Administration denies Goldman Sachs $3 billion tax break

Goldman Sachs receives 200 doses of Swine Flu Vaccine

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