Goldman reveals where bailout cash went

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investorzzo's picture
investorzzo
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Goldman reveals where bailout cash went

Goldman Sachs sent $4.3 billion in federal tax money to 32 entities, including many overseas banks, hedge funds and pensions, according to information made public Friday night.

http://www.usatoday.com/money/industries/banking/2010-07-24-goldman-bail...

DrKrbyLuv's picture
DrKrbyLuv
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Re: Goldman reveals where bailout cash went

Goldman reveals where bailout cash went

An examination of how the government says Goldman Sachs defrauded investors.

http://link.brightcove.com/services/player/bcpid42806360001?bctid=180367...

"We thought originally we were bailing out AIG. Then later on ... we learned that the money flowed through AIG to a few big banks, and now we know that the money went from these few big banks to dozens of financial institutions all around the world."

Goldman Sachs (GS) received $5.55 billion from the government in fall of 2008 as payment for then-worthless securities it held in AIG. Goldman had already hedged its risk that the securities would go bad. It had entered into agreements to spread the risk with the 32 entities named in Friday's report.

Overall, Goldman Sachs received a $12.9 billion payout from the government's bailout of AIG, which was at one time the world's largest insurance company.

Goldman Sachs also revealed to the Senate Finance Committee that it would have received $2.3 billion if AIG had gone under. Other large financial institutions, such as Citibank, JPMorgan Chase and Morgan Stanley, sold Goldman Sachs protection in the case of AIG's collapse. Those institutions did not have to pay Goldman Sachs after the government stepped in with tax money.

Shouldn't Goldman Sachs be expected to collect from those institutions "before they collect the taxpayers' dollars?" Grassley asked. "It's a little bit like a farmer, if you got crop insurance, you shouldn't be getting disaster aid."

Why isn't anyone in jail for this obvious criminal fraud?

Larry

frank_begbie's picture
frank_begbie
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Re: Goldman reveals where bailout cash went

Now if it had have been you, you would have been inside doing 20 years hard labour.

You can't jail these guys....they're business peopleSurprised

 

investorzzo's picture
investorzzo
Status: Diamond Member (Offline)
Joined: Nov 7 2008
Posts: 1182
Re: Goldman reveals where bailout cash went
frank_begbie wrote:

Now if it had have been you, you would have been inside doing 20 years hard labour.

You can't jail these guys....they're business peopleSurprised

 

Exactly right, you won't see anyone from BP go to jail?

JustinChase's picture
JustinChase
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Re: Goldman reveals where bailout cash went
DrKrbyLuv wrote:

Why isn't anyone in jail for this obvious criminal fraud?

Larry

 

Because of the golden rule, those that have the gold make the rules.

As long as we allow our politicians to be bought by corporations, this will continue.

I suggest everyone make one small change in how you look at the news from now on.  EVERY TIME you hear or read the term "campaign contribution" you mentally exchange it for the word "bribe."  If everyone starts to do this, the revolution can finally begin in earnest.

If we can change the laws to make the receipt of even one dollar (or any "favors") by a politician equivelant to treason (which it is, by the way), punishable as treason, the country can return to what it was designed to me, a democracy.

Until then, it's embarrasing that we've allowed our once fine country to degrade to the state it's currently in.

Public funding of campaigns, equal airtime on networks (who received the airwaves/frequency free from the government), and mandated responses to public concerns will get us back to government of the people, by the people, for the people

Until then, we'll continue to be slaves to corporations (which I think should be outlawed entirely, by the way)

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