Cover your ass

John Paulson huge Democrat donor. Of course, so is the corporation, Goldman Sachs, but they’ll be getting off with a minor wrist slap; beloved individuals won’t see the dark side of the law, ever.

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8 responses to “Cover your ass

  1. not so anonymous

    I am waiting for all the congressmen who shouted down the financial oversight committee in 2003 who we’re trying to warn Mr. Frank and all his cohorts that the sub prime debacle was going to explode, to be held accounta le for FORCING the banks to make un secure loans to unqualified applicants…… ?? I’m sure I’ll draw my last breath before that happens.

  2. Fly Girl

    In the link you posted, a reader (not I) said this:

    “He’s also a major Republican Donor: He gave $42,850 to McCain Victory 2008. According to CampaignMoney.com, he donated $55,450, or 54.8% of his total donations, to Republican candidates in 2008………”

  3. Anonymous

    Trivial amounts of political donations (AKA non-tax-deductible protection money) for anyone of means, let alone billionaires
    Community organizers need to raise funds from all sorts of rich folks for re-election and such
    Kinda hard for commies who’ve never had real jobs in their own “careers” to be credibly moralistic re: donors’ sources of earnings…

  4. Loser

    Is it possible that GS didn’t see the inevitability of the bad results of the trade? If GS had turned round after the creating of the fund, and subsequently offered the CDO to its employees to invest in, surely that would mean that it was largely a few low life’s in the company who are responsible, rather than all of the whizz kids?
    However, if certain “select” employees, within a distinct and separate GS entity, had been offered the opportunity to buy the CDO against Paulson, could it be that these were the ‘sacrificial fish’ in the barrel to make the transactions look innocent, hence the $75mil or $90 mil (personal!) loss?
    Perhaps, those ‘sacrificial fish’ would have been offered the opportunity to invest in the CDO and on condition of acceptance to the fund, was obligated to comply with the notion that inclusion into the scheme was so confidential, that they were not to discuss their own inclusion with their colleagues. Something like a company policy of not discussing renumeration packages etc. The ‘sacrificial fish’ wouldn’t particularly be “greedy” losers, they may be hardworking diligent employees (not particularly the really high earners) who had considered the investment as stable and long term, and similar to the deferred compensation allocation of company stock or perceived it as similar to a contribution in their pension fund.
    So, if GS are wildly protesting wrong doing by shouting that they lost money in the deal, where exactly in the company did the loss come from?
    If these ‘fictitous’ employees don’t want to shout about their losses for fear of losing their job or becoming absolutely unemployable, wouldn’t this be the most plausible group to be labeled as the “GS personal losses”.
    Discuss.

  5. Mr. Independent

    The first I heard about Goldman’s betting against its clients was in Matt Taibbi’s great article in Rolling Stone Mag a year or so ago. I never expected the SEC to go after them. I was also surprised that this story led the news all day yesterday on both liberal and conservative media.

    Paulson may not get more than a wrist slap by the Feds, but I am not sure he will be so kindly treated by the tort bar, and Goldman clients on the losing end of this deal, who may well go after him. Even though he may be just on the right side legally, I am not sure that juries will see it that way.

  6. shoeless

    Blumenthal has finally awoken from his slumber and now has an issue on which to ride to Washington. He is pushing from criminal prosecution rather than simply civil. It also conveniently would allow the state to replenish the pension coffers if he could extract enough blood. I suspect he won’t be alone.

  7. Loser

    If I were one of the clients who invested in a slice of Abacus or one of the other CDO type vehicles within the created portfolios, what would happen now?