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Thursday, September 29, 2016

How Hank Paulson Gave Hedge Funds A Heads Up During The Financial Crisis

According to a Bloomberg News report, in 2008 then-Treasury Secretary Hank Paulson told a group of hedge fund managers — at least five of whom used to work for Goldman Sachs, where Paulson had served as CEO and chairman — that he was considering “placing Fannie Mae and Freddie Mac into ‘conservatorship’ — a government seizure designed to allow the firms to continue operations despite heavy losses in the mortgage markets.” This course of action would effectively wipe out the value of the firms’ stock.

At the same time, Paulson was telling the New York Times that shareholders should maintain control of the two mortgage giants.

  • Pmaz

    “Paulson didn’t profit from the leaks” What?
    Paulson’s entire retirement plan is in GS. If he told five fund managers, he obviously told GS?
    This stinks.

  • fsmith

    The commenter is correct, I’m guessing. If Goldman Sachs made dough on this from which Paulson profited, why isn’t a prosecution being considered?

    Of course, Erik Holder has rarely shown any intent in holding the banksters accountable and Tim Geithner certainly wouldn’t.

  • Hankk

    Is there an honest politican, just saying? Occupy needs to get a spokesman, pull all groups together and call for the removal of every congress person that is up for re-election in 2012. Not just the Dems. like the tea party did, but everyone up for re-election in 2012.

    We the people need to wake our government up,and at every election until we rid our congress of all of the crooks vote everyone running for re-election out.

    hankk, MI

  • DianneLee

    The information below is a constitutional amendment being proposed by a group called “Move to Amend”. None of the currently proposed amendments address all the issues- corporate personhood, the doctrine that money = speech, and the ability of rich individuals, including the candidates themselves, to donate huge amounts of money to buy our elections. Many also allow any organization other than a corporation to buy elections, essentantially allowing them to continue their activites by simply dissolving their corporate identity. The amendment below solves all of these problems, and this is the language that the amendment should contain:

    Section One
    Corporations are not people and can be regulated. The rights protected by the Constitution of the United States are the rights of natural persons only. Artificial entities, such as corporations, limited liability companies, and other entities, established by the laws of any State, the United States, or any foreign state shall have no rights under this Constitution and are subject to regulation by the People, through Federal, State, or local law.

    The privileges of artificial entities shall be determined by the People, through Federal, State, or local law, and shall not be construed to be inherent or inalienable.

    Section Two
    Money is not speech and can be regulated. Federal, State and local government shall regulate, limit, or prohibit contributions and expenditures, including a candidate’s own contributions and expenditures, for the purpose of influencing in any way the election of any candidate for public office or any ballot measure.

    Federal, State and local government shall require that any permissible contributions and expenditures be publicly disclosed. The judiciary shall not construe the spending of money to influence elections to be speech under the First Amendment.

    Section 3
    Nothing contained in this amendment shall be construed to abridge the freedom of the press.

  • DianneLee

    The information below is a constitutional amendment being proposed by a group called “Move to Amend”. None of the currently proposed amendments address all the issues- corporate personhood, the doctrine that money = speech, and the ability of rich individuals, including the candidates themselves, to donate huge amounts of money to buy our elections. Many also allow any organization other than a corporation to buy elections, essentantially allowing them to continue their activites by simply dissolving their corporate identity. The amendment below solves all of these problems, and this is the language that the amendment should contain:

    Section One
    Corporations are not people and can be regulated. The rights protected by the Constitution of the United States are the rights of natural persons only. Artificial entities, such as corporations, limited liability companies, and other entities, established by the laws of any State, the United States, or any foreign state shall have no rights under this Constitution and are subject to regulation by the People, through Federal, State, or local law.

    The privileges of artificial entities shall be determined by the People, through Federal, State, or local law, and shall not be construed to be inherent or inalienable.

    Section Two
    Money is not speech and can be regulated. Federal, State and local government shall regulate, limit, or prohibit contributions and expenditures, including a candidate’s own contributions and expenditures, for the purpose of influencing in any way the election of any candidate for public office or any ballot measure.

    Federal, State and local government shall require that any permissible contributions and expenditures be publicly disclosed. The judiciary shall not construe the spending of money to influence elections to be speech under the First Amendment.

    Section 3
    Nothing contained in this amendment shall be construed to abridge the freedom of the press.

  • MakavelisRealm

    What did you think “Occupy Wall St” is about. It’s not illegal for members of the Gov to do insider trading but it’s illegal for everyone else.Yes there are some honest politicians but watch them sink with the ship quick.

  • LogicObserv123

    Let’s face facts. In most candidates for elective office exists a strain of pathological narcissism. They are already self-corrupting to start with, and fully corrupted by the time they hold any elective office at the state level. Given that, it is SO easy to buy into their own BS about how they are indispensable to their state or nation, and just HAVE to do any disgusting, reprehensible thing to get re-elected. For someone like Paulson, who was already a heavy player in a fraud-laden con game, a political appointment from corrupt politicians was like a gift from heaven. Steal all you want, the doors to the store are unlocked, and we own the cops, so you are not only free from pursuit, prosecution is not a possibility. We are SO screwed in this country until we find our way to direct democracy involving the neutering of representatives to the extent that the most they can do is propose legislation, but they NEVER get to vote on its passage. WE DO…..

  • mary byrnes

    Does anyone continue to question why people of all backgrounds and ages are out in the streets protesting? My God, I remember Hank Paulson on TV pushing for the bailouts that would keep ” the country afloat”…BS…it kept him and his cronies afloat and he should go to JAIL!