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                                               A TIGERSOFT RESEARCH PROJECT   5/10/2009

                                                       GOLDMAN SACHS:

   Making US Financial Policies Pay Off Big for GS!

                        OBAMA Is Clearly Goldmans' Tool. 
                     Look at GS Rocket Up.

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               OBAMA Is Goldmans' Tool. 

          Obama Has Covered Up Goldman's Criminal Fraud.
          By picking Tim Geithner as Treasury Secretary, Obama
          gave Goldman a Gift worth Billions and Billions.
          in Return for a Mere $1 Million in Campaign Contributions.

               This article shows in detail how dangerous is Goldman Sachs'
                Political Influence... Sadly, for American Democracy, Obama defends
                Goldman.   They are  "Too Big To Fail" and "No Laws were Broken".
                Obama says this, even before there is a thorough investigation. 

      #1     Goldman committed massive fraud in  knowingly peddling vastly
                more soon-to-default mortgages as bundles of "AAA" rated debt
                than any other Wall Streeet firm.                  

      #2      Obama steadfastly ignores Goldman's "Insider Trading" and
                 the Very Costly and Corrupt Influence Peddling by Goldman
                 Operatives in Gov't.

      #3      Geithner (the head of NY FED) in September 2008 set up the taxpayer's
                 payment of $12.9 Billion to Goldman when the Government took
                 over AIG.  This was done in secret.  Congress and the American
                 people were not told.  The US was under no obligation to pay
                 AIG's "criminal" debts, or 100% on the Dollar on them.  AIG sold
                 Credit Default Swaps to Goldman and others, which it knew full
                 well it might never afford to be able to pay.  Such transactions
                 constitute fraud.

      #4        Geithner's Successor as NY Fed Chairman Abruptly Resigned
                  When It was Disclosed that  He Granted Goldman Sachs Status
                  as A Commercial Bank,  Enabling Then to Get $10 Billion in 
                  TARP Payments and Full Access to Fed's Discount Window,
                  All The while He Was Buying Three Millions in Goldman Stock.       

      #5        Goldman Is A Giant Hedge Fund.  It Dominates Program Trading
                  And Rampantly Manipulates Markets.  It Should Have No
                  Banking Privileges.   It Does So because It Runs The Government.
                          BUT THAT HASN'T HURT THEIR STOCK.  THEY RUN THINGS! 

                                                                         Breaking News:

                                     4/19/2009   MORE TAXPAYER BANK BAILOUTS COMING
                                     4/19/2009    FL's Largest Bank Fails While Bush Treasury Scandal Unfolds
Proof-positive that fraud has been rampant, institutionalized and flat-out
                                          supported by our government throughout our nation's financial services sector

                                           for a very extended period of time....(F)raud is clearly demonstrated."

             --------- GS Stock: 2008-2009 courtesy of TigerSoft ---------
                                                                  4/9/2009 124.33 +9.58 wpe159.jpg (85891 bytes)         

  by William Schmidt, Ph.D. (Columbia University)
                                            (C) 2009 All rights reserved.  Reproducing any part of this page without
                                                            giving full acknowledgement is a copyright infringement.

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Goldman Sachs 

                            gs.jpg (17518 bytes)

Noun - toady - a person who tries to please someone in order to gain a personal advantage
                           ass-kisser, crawler, sycophant, lackey
                           apple polisher, bootlicker, fawner, groveler, groveller, truckler -
                                  someone who humbles himself as a sign of respect; who behaves as if he had no self-respect.
adulator, flatterer - a person who uses flattery.

Verb - to toady  - try to gain favor by cringing or flattering;
                          bootlick, kotow, kowtow, fawn, truckle, suck up
                          blandish, flatter - praise somewhat dishonestly 
court favor, court favor, curry favor, curry favour -
                                seek favor by fawning or flattery; "This employee is currying favor with his superordinates"  

                                 Wall Street - Goldman Sachs -  Washington

        The CEOs who boss the huge Wall Street firms invariably took huge risks with
                other people's money in order to get obscenely high bonuses after 2000.    It was
                their lobbying for de-regulation and then their over-leveraging that caused the
                bubble and crash.   Investment bankers like Goldman Sachs knew that they were
                committing fraud when they sold packages of "liars' loans" as triple "AAA" investments.
                Not only did Goldman sell more of these bundles of "toxic assets" than anyone
                else, they also bought more credit default swaps from AIG as insurance against
                the mortgages and the banks who held them failing.  Such large purchases of insurance
                from AIG prove that Goldman knew their bundled mortgages were not grade "AAA".
                That should prove in a court of law that they were guilty of fraud and misrepresentation. 
                Why is their no criminal prosecution and no trial?  Sources. 

                         Besides, Goldman, many economists also saw this coming.   Even TigerSoft
                got the essentials exactly right.  But among those who ran Wall Street and ran the
                country, there was only a complete and reckless disregard about the consequences
                of their greed, fraud and corruption as the housing boom developed and peaked. 

                         Despite their responsibilities as leaders of finance and government,   bank
                 CEOs like Paulson at Goldman (for example), US Treasury officials from Goldman,
                 Geithner at the NY Fed and key Congressmen, all let the boom get bigger and bigger,
                 pushing home prices higher and higher.  Goldman Sachs' CEO Paulson even
                 successfully lobbied the SEC to further reduce controls on investment  bankers
                 in 2004 and 2005 while permitting them to use even more leverage.  With no
                 real oversight, Bear Stearns, Lehman Brothers, Merrill Lynch, CitiGroup and
                 dozens of other banks became houses of cards to make their CEOs rich.  Criminal
                 fraud of epic proportions as been committed, but Obama, who is in their pay,
                 says no crime has been committed without even conducting an investigation
                and allows the CEOs at the banks getting billions in bailouts.

                       The eventual collapse was easily foreseen by cynical Wall Street insiders, like
                 ex-GS CEO Robert Rubin who sold out at the top.  Rubin knew the risks.  He and
                 Larry Summers   (who got $7.8 Million from Wall Street and Goldman Sachs in 2008)
                had long promoted the de-regulation of banks and the non-regulation of derivatives
                like those that bankrupted AIG within the Clinton Administration.  At CitiGroup, 
                 it was Rubin after 2002, more than anyone else, who had urged that big bank to
                 maximize their use of leverage all the way up, making more and more ridiculous
                 loans to increase short-term profits to get higher and higher bonuses.  These
                 corrupt anti-regulation ideologues just didn't care about the consequences
                 of their policies.  They completely disregarded the lessons of the 1920s-1930s. 
                 How could such smart and learned men do this?  Simply put, their loyalty had
                 been richly bought and paid for by Wall Street..  

                       It is significant that Goldman Sachs avoided the worst of the 2008-2009 Crash. 
                 In September 2007, Goldman issued a report predicting a 35% to 40% drop in housing
                 prices. Most of their profits after 2007 came from buying credit default swaps and selling
                 stocks short.  To that end, because they understood the dynamics of the boom 
                 they had helped create,  they set up a huge $10 Billion short selling Hedge Fund
                 in December 2007.   This was done at the perfect time.  Goldman thus sold short
                 all the way down. 

                       But that's only a small part of the story.  Goldman Sachs got a TARP- I  taxpayer
                 bailout of $10 billion from their ex-CEO, Henry Paulson as Treasury Secretary,
                 even though they were in no way a commercial bank, which could extend credit to
                 Main Street and re-start consumer spending,  as Paulson insisted was the purpose
                 of the bailout.   And never ones to lose an opportunity to steal from the taxpayer,
                 Goldman got $13 billion more when the American taxpayer bailed out AIG.  Goldman
                 was claimed it was owed that much by AIG for the credit default swaps it has bought. 
                       Keep in mind, If the taxpayers had not bailed AIG out, Goldman would have been
                 shy $23 billion last Fall and probably not have had sufficient capital to survive.  To arrange
                 their getting the $13 billion via AIG from the taxpayer, free and clear,  a secret meeting
                 took place in September 2008 between the current Goldman Sachs CEO,  Lloyd Blankfein,
                 and Henry Paulson, Bush's Treasury Secretary and the previous CEO of Goldman Sachs. 
                 The pay-off was only divulged five months later, as a result of Congressional
                 investigation into AIG bonuses.

                      Goldman might have been grateful to get the Paulson bailout and the $13 billion
                 AIG pass-through.  They might, as a result, have made a sincere, good faith effort to
                 set up a commercial banking business.   They might have reduced their executive
                 pay and bonuses.  But that was not their plan.   The history of Goldman unbridled greed,
                 fraud, insider trading and opportunism were too entrenched.  They used the bailout
                 billions to trade the stock market for their own account even more aggressively,  Their
                 CEO vowed to return the bailout money as quickly as possible in order to avoid any
                 limitations on executive bonuses or oversight.  Goldman now trades much more "
                 aggressively for its own account, as principals,  far more than any other brokerage
                 or investment bank.  The current ratio of trading for themselves as opposed for clients
                 is 5:1, the highest on Wall Street.
                  wpe157.jpg (107639 bytes)
              ( Source:
http://4.bp.blogspot.com/_FM71j6-VkNE/SfCdjXYUchI/AAAAAAAACGc/ehB0IWpfeuM/s1600-h/NYSE+Program+trading.jpg )

                        With this "MO",  where they trade almost exclusively as principals,  there is no
                 justification for them being able to borrow from the Federal Reserve's Discount Window
                 for 0.25%.  They are almost exclusively using this public money to trade for their own
                 account.   Their program trading makes the market's swings wider and makes prices
                 much more subject to their manipulation.  They  certainly have no compunction about
                 using TARP money to sell short!  These practices must be exposed to the light of day.

                        One wonders if it was Goldman Sachs, more than any other Wall Street firm,  in 2007
                 that successfully lobbied the SEC to do away the uptick requirement on short sales. 
                 That would seem likely given their influence and their decision at this time to create
                 a $10 billion short selling hedge fund in December 2007.   This decision opened the
                 door to aggressive short-selling and made the plunge much worse than it would have
                 been.   The lessons of the early 1930s were convenienly forgotten so that gangs of
                 short sellers could again fleece Main Street for their own selfish purposes.

                      Investment bankers create nothing!  But they are paid everything!  Goldman
                  played the bubble perfectly.  Why did they succeed, where others on Wall Street
                  failed?     They controlled Washington.  Their people ran the US Treasury.    When
                  they needed more money, their friends in Washington arranged billions for them,
                  always at the taxpayers' expense.  

                      Washington has been the tool of Wall Street for years and years.  But never
                   more clearly than now, and it is Goldman Sachs that is the epicenter of this
                   Greed Connection between Wall Street and Washington.

                       The first quarter of 2009 earnings reports for Wells Fargo, Goldman Sachs
                    and JP Morgan have now come out.  They show that the biggest monopoly
                    US Banks are certainly making lots of profits from the bailout, but the amount of their
                    loans to individuals and real people are declining, not rising!  Housing starts and
                    employment are not going to improve by making wealthy bankers even richer.
                    The stated purpose of Obama's/Paulson's TARPs and the central premise in their
                    simplistic view of big bankers as salvation is shown to be a nasty FRAUD for scamming
                    billions from taxpayers.  Shame on you, Obama!  And shame on you, Mr. Bernanke!  We
                    still cannot see how much of the $2 Trillion that you have loaned individual banks,
                    has gone to companies like Goldman Sachs and on what terms.  What are you
                    hiding? Why? 
Who Are These People?

                         With an arrogance found only among the super rich, these Goldman Sachs
                    executives have claimed that they are the "best and the brightest".   They work hard
                    and have earned every penny of their fabulous pay.   To keep the most talented
                    loyal, Wall Street firms like Goldman always say that they must pay very high salaries
                    and bonuses, very often in the tens of millions of dollars. 

                        What a crock!  They pay them excessively to buy loyalty, just as a crime boss would.
                   They wish to prevent dissent, to keep their frauds and deceptions private, to attract
                   the greediest who lack compunction and to perpetuate an aristocratic cult.

                   The truth is very different.  Goldman Sachs executives are not so
                 smart.   They cultivate contacts and insider knowledge.  Most have
                 been shown to be cut-throat fraudsters,  They are not complex.  They
                 are not conflicted.  They are simply massively arrogant, spoiled and
                 greedy.   They are elitists with a gigantic sense of entitlement.  They
                 expect others to clean up after them.  Under Obama, they remain 
                 unpunished white collar criminals.  They have committed massive
                 economic crimes in bringing down the entire world economy to
                 the shame of all Americans.  They now fully expect to go unpunished
                 and be fully bailed out.  In this, they are as unworthy as any dull,
                 selfish, over-indulged child from rich parents.   Until they are punished
                 and their power and wealth taken away, America's claim to be
                 a Democracy with equal justice for all will sound very hollow to
                 those that know the truth.

                         When the public finds all this out, they will be mad as hell.  And it will ALL come out.
                    Help spread the word.  Now is the time to break up these monopoly banks that are
                    "too big to fail" and have a thorough investigation of their criminal fraud.  Without
                     such a public investigation, nothing will have changed.  Trust will not return and
                     America will be victimized by these same scam artists again and again.  The US
                     is already in  too much debt.  Giving billions and trillions to the banksters who
                     caused this calamity is immoral and very, very dumb.  

                     ( A very good summary: http://www.pbs.org/moyers/journal/04032009/watch.html   )

                                 --------------------------------- DJIA -2007-2008 ----------------------------------

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In 2007,
Wall Street paid out more than $30 billion  and London's City $15.6 billion) in bonuses.  (Source).   In December, Goldman Sachs
set up a up a special huge
$10 Billion short selling Hedge Fund
to profit from the coming bear market thay they knew was coming, because of how closely involved they were in involved in the creation of the Bubble.

Lloyd Blankfein, Goldman's CEO received $68 million in 2007.  
Total GS Compensation was  $10 billion in 2007..

Taxpayers Pay for Goldman Sachs' Executive Bonuses
in 2008.
30th October 2008 "Goldman Sachs is on course to pay its top City bankers multimillion-pound bonuses - despite asking the U.S. government for an emergency bail-out.    The struggling Wall Street bank has set aside 7billion for salaries and 2008 year-end bonuses, it emerged yesterday. Each of the firm's 443 partners is on course to pocket an average Christmas bonus of more than 3million.  The size of the pay pool comfortably dwarfs the 6.1billion lifeline which the U.S. government is throwing to Goldman as part of its 430billion bail-out. As Washington pours money into the bank, the cash will immediately be channeled to Goldman's already well-heeled employees. The same bankers who have brought the global economy to its knees seem to pocketing the same kind of rewards they got during the boom years.   Source


wpe158.jpg (2933 bytes) Lloyd Blankfein, Goldman's CEO since June 2006,  He received over $60 million in 2008.  

The Wall Street Journal has disclosed that Lloyd Blankfein
was present at the meetings with Tim Geithner and Hank
Paulson when the decision was made to bail out AIG, which
had sold credit default swaps to Goldman Sachs on which
AIG was unable to make good.  Goldman’s stock had
plummeted to 50-, wiping out vast amounts of wealth amongst
the Goldman Sachs top echelons, including

The taxpayer bailout of AIG to the tune of more than
$150 billion, was said to be necessary to safeguard the
entire financial system.  The truth is very different.
Goldman thereby secretly and quietly received
$12.9 billion from the AIG bailout for the debts
AIG owed it.  GS was the largest beneficiary of such
AIG "pass-through."

See - Protests against Greed at GS Meeting..

Who's Keeping Burger King Workers Below the Poverty Line?

            Instead of Challenging Wall Street, Obama Has Turned The
                    US Treasury Over To Goldman Sachs Supporters.

This article attacks Obama.  He deserves it.  I think he needs to change course. 
             He pretends to be a populist in front of large audiences.  But his appointments and actions
             show he is a tool of the biggest Wall Street firms and their CEOs. 

                     Wall Street and Goldman Sachs, specifically,  were Obama's biggest source of campaign
             funds.  If McCain had won, would things be any different with respect to Wall Street running
             Washington?   McCain got lots of money from the same people.  So, we can't say.  But
             Obama is way off-course if he wants an economic recovery.  And this needs to be said.  
             It was the bankers who were the problem.  They are not the solution. 

                   Obama chooses not to start an open investigation of what lay behind the financial collapse
            from 2007 to 2008, because of just how vast the corruption is, the venal connection between
            Wall Street and Washington, at the expense of Main Street. 


I know it's hard to believe, but the economic news is getting worse.  Any day now GM may
             declare bankruptcy.   The IMF is predicting that toxic bank debts "could reach" $4 Trillion,
             up 80% suddenly from the $2.4 Trillion they had estimated until recently.  Leading Wall Street
             firms, especially Goldman Sachs, have made a lot of money at public expense and now they
             have a lot of enemies and that number is growing exponentially.


If Stephen Friedman (for insider trading of Goldman Sachs while
                     he was Chairman of the NY Federal Reserve) is allowed to walk
                     away without tough legal prosecution aimed his way, then it makes a
                     mockery of prosecutions aimed at Martha Stewart or Sam Waksal
                     for “insider trading.” In fact, it makes a mockery of the entire USA
                     capitalist system and it further sows the seeds of mass cynicism and
                     disgust with the current Establishment.  It is becoming very clear to
                     even the most obtuse that Goldman Sachs and JP Morgan, as constituent
                     owners of the Federal Reserve, engineered a phony financial crisis last year
                     in order to allow their government shills to force the hapless US taxpayer
                     to pay for years of aggressive investment bets that turned sour...

"(B)oth Goldman and JP Morgan created this fake financial crisis
                     in order to steal TRILLIONS of dollars from taxpayers and preclude
                     derivative losses that would have destroyed both companies. In the name
                     of “protecting” the system, their grand larceny of US taxpayer money
                     saved their hedgebooks from failure. They socialized their losses even
                     though, for many years, they always demanded their profits be kept in
                     private hands, utilizing every scam under the sun to avoid paying the
                     IRS a significant dime. Goldman and JP Morgan, as counterparties to
                     the failing AIG (another long-time precious metals short player), saved
                     themselves from bankruptcy under the guise of “precluding systemic risk,”
                     when the only natural result of their failure would have been to see some
                     major regional bank(s) absorb them for pennies on the dollar. As part of
                     this process, precious metals investors would have been enriched
                     tremendously, but THAT is how the capitalist system is supposed to
                     work, money is supposed to flow from those who are wrong to those
                    who are right! That was not allowed to happen as the market’s normal
                    function once again was subverted by the Wall Street foxes who control
                    the chicken coop.

Goldman certainly manipulated the trading in various individual stocks last year.
                          They wanted a close competitor, Lehman, to go out of business and they used
                          whispers and rumors to help them go out.  In March, a former Goldman
                          employee with then with the DOJ leaked an internal memo which caused CME
                          to drop 140 points in one day. That employee is now CEO of Wachovia.
                          Mission accomplished-and rewarded.        
Anonymous on April 13, 2009 12:33 PM

                      Look at Yahoo's Finance's Messages on GS.   Here a sample.
- "
Video that got Dylan Rattigan fired!" http://www.cnbc.com/id/15840232?video=10...
                               -   "I agree... "
                              -   "That video was just the start. Ratigan kept ranting through out the week calling it the "Greatest
                               -    financial fraud ever" He was shown the door. So much for how outspoken honest people are treated."
                               -    I also agree that was probably a key reason for letting him go. But he did raise many interesting
                                   questions that have gone unanswered by anyone in our corrupt as hell government or Goldman for that
                                    matter. I truly can not stomach even the mention of the name of that schlock firm. The only way to
                                   get any justice is the old fashion way folks. Grab a rope find a nice sturdy oak tree and hang em
                                   till they no longer move!! Blankfein would be number one on my list and that list is very long!! 

                                 "GS criminal" - "wear fancy suits, rob millions, and make more money than 1,000 productive
                                  humans combined. These are the lowest form of human on earth. They must be destroyed for peace
                                 on earth to return."   shintabou1
                                "what that F' blankfein and Paulson forgot is that- "  "they still live in the USA W/their families,
                                 Paulson's son owns a baseball team in Utah.They still have to live among us, we might not want to
                                talk to them or even acknowledge them."   takemychanc..   

                              - We need them tried for treason and legally executed for treason... get them out of the US
                                and onto their next life.

                             - But the first thing people need to know is just how crooked these two guys are and how
                                they are at the center of the whole crisis.  All of the money trails, influence peddling, fraud etc.
                                seems to (not so) mysteriously lead back to Goldamn... Paulson, Blankfein, Cohn!
                               What is the current method of executing someone for treason?
                             - YEH! they are liars and thieves

                             -   good info! Keep it up outing these thieves and there families.  They can only walk the streets
                                so long if everyone knows them and wants to kill them
                            - Goldman Sucks needs to pay back the AIG money too.
  These guys are really evil.
                              They stole from the taxpayers when the derivatives were trading at less than face value.
                              This is the problem when you put as the treasury secretary a cronyganger of Goldman Sucks.
                              It is time that Geithner left in shame, but you can see he has no shame. And neither does Goldman Sucks.
Can there be any doubt about Obama           bgamall4                  

                    Slate.com's critique of GS is heard frequently and widely now.   For the rally to continue, investor
             confidence needs to grow, not contract.  Hatred, real hatred, for Goldman Sachs is growing.
             Salon's Don Rich makes a key point when he notes that Goldman's purchase of huge numbers
            of credit default swaps from AIG, more than anyone else, is strong proof that they knew that they
            were fraudulently marketing"toxic" bundled mortage loans as "AAA" around the world.
It was Goldman Sachs more than any other entity who was peddling these now so-called
                            "toxic assets" on a massive scale as AAA rated safe investments for your grandmother's CD
                             account.   At the same time that it was saying these now "toxic assets" were safe, Goldman Sachs
                             was purchasing and advising clients to purchase insurance protection on these investments called
                             credit default swaps from AIG on a scale that was wildly inconsistent with the presentation of the
                             original securities being deserving of a AAA rating.   In technical terms, their purchase of
                             default swaps at this level proves that their probability estimates as to risk was not as stated in the
                             origination of the security.  That constitutes a material, and I believe, crimnal fraud and breach
                             of insurance contract in terms of the credit default swap.

                      CNN Money has reckoned the US Government (and we taxpayers) have already spent $2.6
          Trillion rescuing banks from their own mistakes.  Obama is clearly continuing down the same path
           that Bush and Goldman Sach's CEO Paulson started.   The Zombie US banks will likely need $4
          trillion to make up for their "toxic" debts says the IMF. Will the American public allow Obama to
          keep giving unlimited amounts of money to Wall Street as his advisors, Summers and Geitner want. 

                      Scandal after scandal is emerging for Obama.  Even the liberal CNBC is critical.  This weekend
          the news broke that Obama's Chief Economic Advisor, Lawrence Summers, got almost $8 million
          last years for a few weeks' "work" and speeches at Wall Street firms.   Now the nearly $20 billion
          secretly paid to Goldman Sachs by the taxpayer through the newer AIG bailouts are being investigated. 
          As a result more and more critics are emerging of the effectiveness of Obama's economic solutions
          and his excessively close ties to and and control by the biggest Wall Street firms.  In former IMF
          Chief Economist Simon Johnson's words, "the finance industry has effectively captured our

                      Leadership is desperately needed.  Obama is not providing that now, despite all the speeches.
          And he will certainly not be able to provide that leadership if the public realizes how effectively
          Wall Street controls him.  Despite his populist rhetoric, Obama has shown no willingness to confront
          entrenched interests anywhere.  Muddling through with a vaulted rhetorical style is not going to
          "cut it" if the unemployment keeps rising.   Even if there is some recovery, without significant new
          controls and re-regulations on banks and brokerages, there will little public confidence that
          investments are safe.  Only trading rallies will take place.  As usual, the broader public will
          probably be tempted to buy at the top and sell at the bottom.

                       Sadly, the Obama SEC now is postponing a decision on  returning back to the short selling rule
           requiring up-ticks.     The delay is very dismaying and more proof that Obama's SEC is run by
           pathetic cowards who continue to want to protect Wall Street hedge funds rather than safeguard
           investors and Main Street.     This is the single most important step the SEC can do to protect
           everyday investors from predatory organized short selling bear raids.
        Goldman Sachs' Political Influence Is Dangerous and
                                                     Very Self-Serving

Tally up the various forms of direct and indirect taxpayer
            assistance Goldman has received in the last several months,
            and it turns out that you and I are providing billions of dollars
            to bail out the proud firm.
"  Goldman is now one of New York's
            biggest welfare recipients.  Last Fall, GS redefined itself as a bank
            holding company, instead of being an investment bank.  In doing
            so, it became eligible for TARP-I payments.

On Oct. 28, Goldman sold $10 billion in preferred stock
            to the government, which bears an interest rate of 5 percent
            through 2013 (after which the rate bumps up to 9 percent). Like
            other TARP recipients, Goldman received capital on pretty easy
            terms. Just a month earlier, when Goldman raised $5 billion from
            investor Warren Buffett, it sold preferred shares that carried a
            10 percent interest rate. (At the same time, Goldman also raised
            $10 billion in a public offering of stock.) The difference between
            borrowing $10 billion at 5 percent and borrowing $10 billion at
            10 percent—in other words, the value of the government
            subsidy—is $500 million per year..
.Interestingly, Art Cashin on CNBC
            just said that Obama's Treasury is considering extending the 5% loan period
            for banks by several more years.  There's nothing Obama won't do for Wall Street..

In addition, the  Federal Deposit Insurance Corp. has guaranteed  $5 Billion of
             Goldman's unsecured debt sold in November 2008  in three-year notes at
             a 3.367 percent rate. On March 12, 2009 GS sold another $5 billion.   Thanks to
             the government's guarantee, Goldman is saving several hundred million dollars
             per year in interest.  Wouldn't you like to be able to borrow with this guarantee
             behind you!   

             Even more of a subsidy for GS has come from the AIG bailout.   Perhaps,
             $20 Billion more.     "Goldman, and many other firms, made the mistake
             of a) buying insurance from a company that, it turned out, couldn't make good
             on its insurance contracts, and b) borrowing securities from, and lending
             securities to, a company that essentially went bankrupt. In normal bankruptcies,
             firms in these in situations have to get in line with other creditors and ultimately
             settle for a fraction of the amounts they're owed. As Eliot Spitzer pointed out,
             because the government didn't let AIG formally file for bankruptcy, Goldman,
             and so many others, have instead been made whole."  
                             (   Source:   http://www.slate.com/id/2214076/       

                      THE AIG PASS-THROUGH OF $12.8 BILLION
                (Maybe much more) TO GOLDMAN SACHS

                  Last month, Obama's Treasury Secretary, Geithner, and Chief Economics Advisor,
             Larry Summers (who received a big advance-bribe from Goldman less than a year before)
             quickly, secretly and wrongly paid Goldman Sachs $12.8 Billion from the AIG Bailout. 
             They did not need to.   But they did.  Criminal contracts have no standing in law.
             AIG, it can be argued, was a criminal enterprise, a giant Ponzi scheme.  The CDS
             contracts were a fraud.    
The quote below is from -

    "The key point is that neither the public, the Fed nor the Treasury seem to understand is that the CDS contracts
     written by AIG with these various non-insurers around the world were shams - with no correlation between
     “fees” paid and the risk assumed. These were not valid contracts as Fed Chairman Ben Bernanke,
     Treasury Secretary Geithner and Economic policy guru Larry Summers claim, but rather acts of
     criminal fraud meant to manipulate the capital positions and earnings of financial companies around
     the world.

     Indeed, our sources as well as press reports suggest that the CDS contracts written by AIG may have included
     side letters, often in the form of emails rather than formal letters, that essentially violated the ISDA agreements
     and show that the true, economic reality of these contracts was fraud plain and simple. Unfortunately,
     by not moving to seize AIG immediately last year when the scandal broke, the Fed and Treasury may have given
     the AIG managers time to destroy much of the evidence of criminal wrongdoing.

     Only when we understand how AIG came to be involved in CDS and the fact that this seemingly illegal activity
      was simply an extension of the reinsurance/side letter shell game scam that AIG, Gen Re and others conducted
      for many years before will we understand what needs to be done with AIG, namely liquidation. Seen in this
      context, the payments made to AIG by the Fed and Treasury, which were then passed-through to
      dealers such as Goldman Sachs (NYSE:GS), can only be viewed as an illegal taking that must be
      reversed once the US Trustee for the Federal Bankruptcy Court for the Southern District of New York
      is in control of AIG’s operations.

Had A.I.G. simply declared bankruptcy, the financial institutions doing business with it would
                 have ended up in court, as they did in the case of Lehman Brothers, fighting to get pennies on the
                 dollar for their claims.  Instead, Goldman Sachs received $13 billion of the Federal Reserve’s rescue
                 money to close out various contracts it had outstanding with A.I.G. It was one of the biggest
                  beneficiaries of the government rescue".
                      ( http://www.nytimes.com/2009/04/17/business/17liddy.html?_r=2&ref=business.   )                


                                                             GOLDMAN SACHS
               Goldman is so big it can manipulate markets as well as Presidents.  The NYSE shows it to be by
               far the biggest "program trader" for its own account. No other company comes close to Goldman's
               efforts to manipulate the market.  For the NYSE "program trades" are orders worth more than a million
               dollars than simultaneously buy or sell a large number of different stocks. 

               The period of time is not shown in the table below.  But it clearly shows how much bigger Goldman
               is than any other participant.    What is scary is that program trading now accounts for 32.1% of all
               NYSE trading and 67.1% of NASDAQ and ASE trading.  Stock market liquidity is disappearing.  
               We are right to worry about Goldman's front-running and manipulation.  We need also to worry about
               another meltdown occasioned by out-of-control computerized program trading as took place in October 1987. 
               Allowing program traders to go short on down-ticks with no need to borrow the stock in advance has
               set the stage for the steep stock market decline in 2008 and in January and February 2009.

                                                 Speaking of Self-Serving Absurdities

              "After the most volatile percentage day in history, October 19, 1987, “trading collars” were placed
              on index arbitrage transactions via NYSE Rule 80A. (Index arbitrage was a favorite tactic of big institutions
              to circumvent other selling restrictions.) On November 2, 2007, however, the NYSE  abolished these
              “circuit breakers,” writing “The Exchange is making this change since it does not appear...that market
             volatility envisioned by the use of these “collars” is as meaningful today as when the Rule was formalized
             in the late 1980s.  Right .... On October 8, 2008, at 3:58 EDT, I captured a screenshot of the market. 
             It was up 107.60 points. Two minutes later the market closed down 189.96 points. That’s a 300-point
             swing in two minutes. There was no news of interest to account for such a panic. There is no way enough
             individual investors or even institutions acting rationally or placing orders up to 10,000 shares could have
             sent the market into such a tailspin.   I was a senior executive with Charles Schwab & Co. (SCHW)
             on October 19, 1987. I can tell you it was the novelty of computer program trading that was primarily
             responsible for the 1987 crash – and the current crash, as well. Facilitating instantaneous execution
             of enormous blocks of stocks, index stocks and futures resulted in blind selling of stocks as the market
             fell, intensifying the decline in both 1987 and in 2008....If we are to reinstate reasonable trading and
             the confidence of the backbone of the stock markets, actual investors (rather than program traders,)
             we must reign in program trading, dark pools and algorithmic trading. It’s all trading. None of it is
             investing! "

  wpe157.jpg (69599 bytes)                
wpe158.jpg (59108 bytes)



       AND TAXPAYER "RIP-OFF".  No wonder Obama Does
       Not Want A Full Investigatiuon.

                              Loosening "frozen bank" credit was, and still is, the excuse given, to have the taxpayer
                 give banks billions.  Never mind, the absurdity of thinking that making taxpayers get deeper in debt
                 will help the economy or that taxpayers should give money to banks so that they can be charged
                 interest on their own money, when they borrow back their own money.  The Billions given the banks
                 have not freed up bank credit.  Many knew it would not last year. So, that should come as no
                 surprise.   The billions-for-bankers federal bailout was never intended to do that.  Its real intention,
                 all along, was to let bank executives get their bloated, obscene and undeserved bonuses.   

                86% of Bailout Money Used for Executive Bonuses by Jason Green
       (  http://endthebailouts.com/2008/11/07/86-of-bailout-money-used-for-executive-bonuses/   )

                          "When confronted about these numbers, the executives will always claim that the
                bonuses are paid out of other funds and company earnings. This completely ignores
                the fact that without the taxpayers’ bailout money, there would be no earnings! If there
                was anyone left who still felt like the bailout was a good idea (besides the executives
                who directly benefit), this should be the final nail in the coffin that we were just robbed
                blindly while the politicians patted themselves on the back.... It turns out that the nine
                banks about to be getting a total equity capital injection of $125 billion, courtesy of Phase I
                of The Bailout Plan, had reserved $108 billion during the first nine months of 2008 in order
                to pay for compensation and bonuses
                          "The country’s top investment bank (which since Sept. 21 calls itself a bank holding
                company), Goldman Sachs, set aside $11.4 billion during the first nine months of this year —
                slightly more than the firm’s $10 billion U.S. government gift — to cover bonus payments
                for its 443 senior partners, who are set to make about $5 million each, and other employees.


Obama's bank - rescue plan will likely fail because
                           it is the product of Wall Street Big Bank "mind set", according
                           to a Nobel Prize winning economist, Joseph Stiglitz of Columbia.
                           Shareholders and bondholders get bailed out, but the taxpayer
                           is left holding the bag.  Obscenely bloated bonuses are par for
                           the course for this crowd.  They protect each other's privileges
                          as royalty would in Elizabethan England. With an arrogance typical
                          of the very rich, they claim that they are the "best and the brightest"
                          To keep the most talented, Wall Street firms say that they must pay
                          these high wages. 

  The truth is very different.  They are simply totallly spoiled,
                          arrogant and greedy elitists and unpunished crooks.  They have
                          committed massive economic crimes in destroying the world economy. 
                          They now fully expect to go unpunished and be fully bailed out. 
                          In this they are as unworthy as any over-indulged child with rich

                              Too harsh a judgement?  Read what a former chief economist
                          at the IMF wrote:
lite business interests—financiers, in the case of the U.S.—played a central role in
                          creating the crisis, making ever-larger gambles, with the implicit backing of the government,
                          until the inevitable collapse. More alarming, they are now using their influence to prevent
                          precisely the sorts of reforms that are needed, and fast, to pull the economy out of its nosedive..."
                              ( http://www.theatlantic.com/doc/200905/imf-advice )


        wpe156.jpg (7750 bytes)     1.  Robert Rubin - Worked for 26 years with Goldman Sachs.
           There he specialized in risk management and arbitrage.  In 1990, he became the Co-Chairman
           of Goldman Sachs.  In 1993, was Clinton's Economic Advisor and the Director of the National
           Economic Council.     He pushed for Free Trade and NAFTA, despite the loss of millions of
           American jobs overseas.    In 1997, along with Larry Summers (see below), Rubin opposed the
           regulation of derivatives, like those that destroyed AIG and thereby cost the American taxpayer
           $175 Billion in 2007-2008.   Rubin convinced President Clinton to sign the law that abolished
           Glass-Steagall, thereby permitting commercial banks to recklessly make mortgages and then
           bundle them as products to unsuspecting investors around the Globe.  Rubin played a major role
           in advising Obama whom he should pick for the new President's economic team.  Rubin advocated
           at CitiGroup where he became a chief advisor an expansion of their use of leverage in making
           riskier and riskier loans.   When the housing bubble broke in 2006 and early 2007, Rubin sold
          a huge stock position in CitiGroup right at the peak, more than $20 million dollar's worth. He
           knew that a Crash was coming.   It was he, as much as anyone, who created the financial bubble.

          wpe157.jpg (8188 bytes)  2. 
Henry Paulson - Worked as Assistant to John Erlichman,
         until the latter was convicted and jailed in the Watergate scandal.  In 1974, Paulson then joined Goldman
         Sachs. In 2004, he lobbied successfully the SEC to release the major investment banks from limits under
net capital rule, the requirement that their brokerages hold reserve capital that limited their leverage
         and risk exposure.  Originally, after this change there was to be set up a Federal Risk Management Office
         to ensure undue risks were not taken by banks.  Paulson as CEO of Goldman Sachs convinced the
         SEC not to establish such an oversight office of investment banks. 
His compensation there allowed
         him to build up a net worth of $700 million.
  In 2006, Paulson was selected by President Bush to become
         the Secretary of The Treasury.   "
Each of Paulson's three immediate predecessors as CEO of Goldman Sachs
         — Jon Corzine, Stephen Friedman, and Robert Rubin — left the company to serve in government: Corzine as a
         U.S. Senator (later Governor of New Jersey), Friedman as chairman of the National Economic Council (later
        chairman of the President's Foreign Intelligence Advisory Board) under President George W. Bush, and Rubin
        as both chairman of the NEC and later Treasury Secretary under President Bill Clinton.[14]"   Source.
                      Paulson quickly fell behind the curve of the financial collapse that gripped the world on his watch.
         In August 2007, Paulson said that the sub-prime mortgage collapse was "contained."  On July 20th,
         He said that the US banking system was "safe" and "sound" and that regulators were on top of
         the situation.   The situation was "very manageable".  On September 7th, Freddie Mac and
         Fannie Mae, went into receivership.   Two weeks later, he demanded that Congress give him the
         colossal sum of $800 million to buy bad ("toxic") bank debts to keep them solvent and prevent
         a financial collapse.   In this, Goldman Sachs received a very generous $20 billion loan from the
         US Government with a charge of only 5%/year.  Goldman Sachs also received nearly $20 billion
         more by the taxpayer bailout of AIG, because of money it was owed by AIG.  No Goldman
         Sachs "hair-cut" or reduction in the amount it was paid back by failed AIG  was ever asked for
         by the Treasury under Paulson or Obama.    See my Blogs:
                 9/20/2008 - Paulson Takes Washington Corruption and Cronyism To Dizzying New Highs.
                10/20/2008 - Goldman Sachs Foxes...Gaming The Bailout.  $700 Billion Down A Rat Hole.
                12/25/2008 - Paulson Is Nothing More Than A Pimp for America's Greediest CEOs.
wpe158.jpg (10213 bytes)  3.   Larry Summers Obama's Chief   
      Economic Advisor. 
Summers teamed up with Rubin to block regulation of derivatives,
        including those based on mortgages. He was Clinton's Treasury Secretary in 2000 when Clinton
        agreed to abandon bank regulation under Glass-Steagall and allow banks to bundle dubious and
        "toxic" mortgages and sell them to others. .  He had served as Rubin's closest aid previously at
        the Treasury. 
                               Summers Gets $7.9 Million "Advance Bribe" from Wall Street in 2008
How would you like to make $7.9  million for a few weeks' part-time work? 
               Could you ever bite the hand that feeds you so well?    That's what Obama's Chief
               Economic Advisor got from a half dozen Wall Street firms in 2008, according to newly
               released financial disclosures from the White House.  Example - Goldman Sachs gave him
               $135,000 to make a single speech. 
Details :  This explains the taxpayer billions for banks
               under the new Geithner-Summers TARP-II Plan where FDIC Public money is used to guarantee
               private investors against losses in buying the mostly worthless big bank "Toxic Debts".
               It certainly explains the billions in bonuses for Merrill Lyuch, Bank of  America and AIG execs.
               It explains why Obama is bailing out AIG, so that Goldman Sachs will get the billions
               that they are owed by the bankrupt AIG.  It explains why Obama refuses to order a
               high level criminal investigation of Wall Street and says the economic collapse Wall Street
               created as all perfectly legal, even before there is an investigation about economic crimes
               and political corruption.   The subject of excessive Wall Street salaries have recently
               been declared off limits, with Summers insisting the Obama Administration can do nothing
               about AIG giving executives bonuses worth more than $200 million from taxpayers  
               Pay reform on Wall Street has very low priority.  This whole affair shows how superficial
               and cowardly much of the media is.  They are infatuated by his eloquence and remain
               blind to how corrupt the Obama Administration looks when closely examined."
                     Source: http://www.tigersoftware.com/TigerBlogs/April6-2009/index.html

         wpe159.jpg (8891 bytes)   4.   Gary Gensler  (Obama's nominee to be head
               of Commodity Futures Trading Commission)  He worked at Goldman Sachs, one of the
               biggest brokers of commodities, for nine years.   He joined the Treasury Department. Gensler
               served under two Clinton Treasury secretaries. From 1997 to 1999, Gensler worked as assistant
               secretary of the Treasury under Robert Rubin until Rubin stepped down in 1999.  Lawrence Summers
               then became the Treasury head, and Gensler was promoted to  Treasury undersecretary.
              There in 2000 "he oversaw the drafting of legislation that exempted derivatives from oversight by the
              federal commodity regulator, including the viral credit default swaps that have amplified the current
              crisis."   (Quote: NY Times.   )    As the head of the Commodity Futures Trading Commission (CFTC),
              Gensler will oversee a troubled organization that has come under fire since oil prices fluctuated wildly
              throughout 2008. Many industry experts have blamed excessive and unregulated speculation by
              investors on 7% margin as the main cause of soaring oil prices in early 2008.  Gensler has so far
              been entirely silent on revising commodity trading margin requirements, the need for more
              regulation of commodity speculation, including publicizing very large short positions.  We have
              to take notice that both Summers and Gensler joined hands with Phil Gramm to ward off regulation
              of the derivative markets and to promote the deregulation of banking and mortgage selling.    

              wpe157.jpg (7458 bytes)    5.   Edward Liddy  Liddy served on the Goldman
               Sachs Board of Directors from 2003 to 2008.  It was Liddy who ex-GS CEO and Treasury Secretary
               Paulson appointed as CEO of AIG.  Liddy then gave Goldman Sachs $12.9 of taxpayer bailout money
               to repay AIG's Credit Default debt to Goldman.  There was no haggling.  Liddy just paid them this
               amount "to retire the derivatives." This was not made public until the issue of AIG bonuses surfaced.   
               Many consider this debt highly vague, suspect and criminal in itself. The truth will come out as a result
               of the NY Attorney General's investigation.  No help or thanks is due Obama, who supported the
               payment to GS.   Source.

                                  " Liddy has a bundle of stock in Goldman he earned as a Director on the Goldman board
                              before he took this job and his Goldman stock was down to $47 when he gave his former company
                               $13Billion of 100cents on the dollar that Obama is covering up according to William Black!
                               Goldman stock has more than doubled with the secret $13 Billion payment to Goldman so Liddy
                                has more than doubled his Goldman stock worth; far more than this joke he is working for $1."
                                                                    Source.   griz99cub

                      THE AMERICAN GOVERNMENT
wpe157.jpg (33240 bytes)

       Timothy Geithner - US Treasury Secretary under Obama.  He mever met a bank he didn't want to give taxpayer
|                money to.   Geithner
, was mentored by Goldman alumni. Mario Draghi, who is leading the crisis response
               for the E.U., is a former Goldman VP.

wpe157.jpg (14741 bytes)    
5. Steve Friedman -  along with Rubin,  Friedman was co-chairman at Goldman.
                 He  was Bush’s economic advisor and became the Chairman of the NY Federal Reserve on Geithner's placement
                 in Obama's administration.  Friedman abruptly resigned as Chairman in May 2009, "after questions arose about
                 his ties to Goldman Sachs. 
Mr. Friedman was chairman of the New York Fed at the same time that he was a member
            of Goldman’s board.
He also had a substantial stake in the firm as the Fed was devising a solution to keep Wall Street
            banks afloat... Because the
New York Fed approved a request by Goldman to become
            a bank holding compan
y, (thereby allowing them to get a massive TARP payment of
            $10 billion despite the fact they trade mostly for their own account and so should have
            been considered a giant hedge fund
) the chairman’s involvement in Goldman was a
            violation of Fed policy, The Wall Street Journal said in an article earlier this week.  The
            New York Fed asked for a waiver, which, after about two and a half months, the Fed
            granted, the   newspaper said. During that time, Mr. Friedman bought 37,300 more
            Goldman shares in December, which have  since risen $1.7 million in value."
http://dealbook.blogs.nytimes.com/2009/05/07/friedman-resigns-as-chairman-of-new-york-fed/?hp )
Is it an equitable tradeoff for Goldman to be released from TARP restrictions simply by paying back
            the TARP itself while retaining access to FDIC-backed financing and all the other perks of a bank
            holding company?   ..It’s hard to really know how secure Goldman is as a bank. We know you can’t
            enter one of their “branches”   and make a deposit, let alone receive a free gift for opening an account

                Mark Patterson   -  Geithner’s chief advisor .  He was lobbyist for Goldman Sachs who fought against limiting
               Wall Street executive pay.. 
               John Thain - Co-President of Goldman Sachs, its chief operating officer.  Merrill Lynch President when the company
                failed.   He had received $300 million from Goldman and was finally fired from Bank of America for his wasteful
                spending on his office.  It was Obama's criticisms of Thain which scared the stock market in early February 2009.
                Wachovia head Robert Steel was a vice chairman of GS.

Paulson's Bailout aids were mostly from Goldman.
Robert Zoellick -   World Bank president .  He was a managing GS director
                Neel Kashkari  ("CASH_CARRY") Bush TARP head - had been a Goldman vice-president
                Edward Liddy, the CEO of AIG, came to the company from the Board of Directors of Goldman Sachs.
                Steve Shafran - Bush US Teasury TARP Administrator - formerly of Goldman Sachs
                Kendric Wilson - Bush US Teasury TARP Administrator - formerly of Goldman Sachs
                Edward Forst - Bush US Teasury TARP Administrator - formerly of Goldman Sachs
See -

                    Compare JP Morgan to Goldman Sachs' CEOS

                        "Blankfein  and his ilk continue to function as though it were business as usual, using campaign contributions
                        and lobbyists to grease the wheels of access and power. And as soon as they dislike something, they start
                        shorting the market, engendering panic until the politicians relent. At least Morgan acted out of a sense of duty
                        when he saved the country in 1909 and he wasn’t even that rich. What America has now is a pack of parasites
                        like Blankfein, to whom the country is a bottomless pit they can exploit endlessly. " Source

                                 Prosecuted Goldman Sachs' Criminal Fraud
Goldman Sachs was one of five Wall Street firms to settle a December suit alleging insufficient email records.
               The suit, headed by the Securities and Exchange Commission (SEC), resulted in two penalties for Goldman
               Sachs: it was fined $1.65 million to be split between the U.S. Treasury, the New York Stock Exchange (NYSE),
               and the National Association of Securities Dealers (NASD); and it will have to take measures to make sure that
               it complies with SEC record-keeping regulations in the future.

Goldman Sachs is one of a dozen defendants in another securities suit that is expected to settle in
                mid-2003. This suit – also filed by the SEC, but headed by New York Attorney General Eliot Spitzer
                – alleges collaboration between the investment banking and research/advice branches of each firm.
                The firms are believed to have issued advice to investors to inflate stock prices, with the goal of luring
                 the patronage of investment banking clients that stood to benefit from these inflations. Goldman Sachs
                 will pay approximately $150 million of the $1.4 billion settlement, the second most among the twelve.
                 Each firm also must agree to regulations designed to separate their research and investment banking arms.

Goldman Sachs, ..(is) currently being sued for fraudulent manipulation of initial public offerings (IPOs) of
                stocks. Investor suits, which also name as defendants the companies they invested in, allege that the
                investment firms arranged deals that inflated the stocks’ prices as soon as they hit the market. For example,
                Goldman is suspected of participating in the notorious broker practice of arranging deals with buyers in
                which they can buy a stock before it is offered to the public, but must agree to make a purchase at a "
                higher price during the stock’s IPO stage. The demand for shares that results inflates their price for consumers.
                Goldman Sachs is also being sued by the companies themselves – Etoys, for example, is alleging that
                Goldman undervalued its IPO in 1999.

   "Goldman Sachs is facing charges by investors that it defrauded them in other ways. One of the most
                prominent cases involves Touch America, the company formerly known as Montana Power. According
                to investors, they were left in the dark when Goldman Sachs pitched the idea for the energy provider
                to transform itself into a telecommunications company. The transformation left the company bankrupt,
                and the stock has plummeted.
" (http://www.goldmansachsfraudinfocenter.com/information.php   )

                More Links
"Our treasury secretary hopes to circumvent laws enacted to protect the economy
                                 by subsidizing a bunch of multimillionaire investors - ostensibly to help regulators fulfill their
                                 most basic job description - in a bid to prop up bankers who cooked their books to support
                                 a gambling binge and still refuse to admit they lost." -- THE SEC...grossly incompetent,
                                 criminally negligent, or just simply corrupt? YES!! ... And for this to happen...the Senate
                                  Banking and House Financial committees are corrupted also.
                                                            READ http://www.motherjones.com/print/22937
                                       Source -   fpvsff

                                TARP-II - Barrons says TARP-II is "Sweet Deal for Banks"  4/18/2009


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