Thursday, February 17, 2011

Finally! Goldman in the Media Hot Seat

Goldman Sachs, among other banks, got paid billions from the U.S. Government through AIG.

AIG insured the credit default swaps on risky derivatives held by the banks. Rather than making the banks take "a haircut" on losses, AIG made good on all of those insurance contracts courtesy of the U.S. taxpayer who has paid and continues to pay billions to bailout AIG.

Now the media is finally talking about this outrage. Here is an excerpt from the article at McClatch titled
"Critics: Goldman should give back $2.9 billion to taxpayers"

http://www.mcclatchydc.com/2011/02/15/108802/critics-goldman-should-give-back.html

"The financial crisis panel's final report late last month found that Goldman's $2.9 billion payout came on "proprietary" trades — investments in which the firm used its own money rather than the more typical deals completed on behalf of clients.

"The panel, inquiring into a McClatchy report last June, said that Goldman got $1.9 billion of the payoff after the taxpayer bailout of AIG began.

"Critics say that in the rush to save AIG and avert systemic collapse of the financial markets, regulators treated Goldman like everyone else. But Goldman was different....read more...

Majia here: Wall Street banks have assumed the status of feudal lords. They are suborning the government to their interests. They are pillaging public coffers. It is time to say enough!

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