Goldman has a strange interpretation of prudence

Goldman has raised its bonus pool to 5 bil for 2009 18% above last years as they prepare to pay back the 10 bil in TARP funds. At the same time having received at least 13 bil in taxpayers money through AIG which need to be repaid as well if prudence and common sense matters they have a third taxpayers benefit which needs to be returned they can issue government guaranteed debt.

Goldman is totally abusing the system to its own benefit which is no surprise but they also do a lot of criminal transactions nobody dares to investigate. Like AUG 2007 one day before the surprise rate cut by the FED on a Friday at 7.a.m they had bought the prior day OEX calls worth of 300 mil. and made a killing the next days as they could only had gathered that hunch by insider knowledge as one of their EX partners was head of capital markets for the FED at that time . He is now the NY FED president Mr Dudley.

Excerpt 1
http://www.newyorkfed.org/newsevents/news/aboutthefed/2009/oa090127.html

Mr. Dudley, 56, was executive vice president of the Markets Group at the Federal Reserve Bank of New York. He was also the manager of the System Open Market Account for the Federal Open Market Committee. He oversaw domestic open market and foreign exchange trading operations and the provisions of account services to foreign central banks. Dudley expanded the Federal Reserve’s contacts with the buy-side investment community and through the Bank’s Treasury Market Practices Group was active in pushing forward the implementation of new best practices.

Prior to joining the Bank in January 2007, Mr. Dudley was a partner and managing director at Goldman, Sachs & Company and served for a decade as the firm’s chief U.S. economist. At Goldman he held a variety of positions including senior foreign exchange economist. Prior to joining Goldman, his work focused on regulatory and payments issues as a vice president at Morgan Guaranty Trust Company and as an economist in the financial studies department at the Board of Governors of the Federal Reserve System. He has been a member of the Technical Consultants group to the Congressional Budget Office and a member of the Economic Advisory Committee to the New York Fed.

Excerpt 2

However, Mr Viniar told investors that repaying Tarp would still allow Goldman to keep issuing government-guaranteed debt.

“It’s important to run our business the way it ought to be run,” he said. “Not only is it important to be able to compensate deserving executives with bonuses much larger than those currently allowed by regulators, he said, but “we don’t want to have to worry about who we hire with an H-1B visa [for skilled foreign workers]”.

Pay back all government perks and taxpayers money is the humble demand for the freedom they ask for or shut up and get modest. In 4 months they made a profit of 1.70 per share that makes Goldman trade at 24 times earnings at present time and those were only possible thanks to US taxpayers money otherwise a huge loss would have occurred – I do not see the need anybody with talent to be paid more than any skilled government worker.

President Obama you got to walk the talk and deliver change – the government have to guarantee the constitution not the debt of investment banks.

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~ by behindthematrix on April 16, 2009.

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