vampire squid goldman sachs
The world's most powerful investment bank is a great vampire squid … “And suddenly in the middle of it, they start saying, ‘Yeah, we’ve been issuing these letters for years now.’ I raised my hand and said, ‘Really? Once again, the problem is not supply or demand. Nobel Prize winner Al Gore, who is intimately involved with the planning of cap-and-trade, started up a company called Generation Investment Management with three former bigwigs from Goldman Sachs Asset Management, David Blood, Mark Ferguson and Peter Harris. “They hid the losses in the orphan month and called the bailout money profit.”. You take a dollar and borrow nine against it; then you take that $10 fund and borrow $90; then you take your $100 fund and, so long as the public is still lending, borrow and invest $900. He was probably born in a $4,000 suit, he had a face that seemed permanently frozen just short of an apology for being so much smarter than you, and he exuded a Spock-like, emotion-neutral exterior; the only human feeling you could imagine him experiencing was a nightmare about being forced to fly coach. How did Goldman achieve such extraordinary results? What is Goldman Sachs? Send us a tip using our anonymous form. Between 1999 and 2002, the firm paid out $28.5 billion in compensation and benefits — an average of roughly $350,000 a year per employee. “The mortgage sector continues to be challenged,” David Viniar, the bank’s chief financial officer, boasted in 2007. 'Everyone's a Nerd About Something': Inside the World of TV Superfandom, Supreme Court Shoots Down Texas Attempt to Overturn the Presidential Election, Taylor Swift Deepens Her Goth-Folk Vision on the Excellent ‘Evermore’, Courtney Love Responds to Miley Cyrus’ ‘Doll Parts’ Cover, Shares Nirvana Video, Pornhub Upended the Porn Industry. In almost every case, the very same bank that behaved recklessly for years, weighing down the system with toxic loans and predatory debt, and accomplishing nothing but massive bonuses for a few bosses, has been rewarded with mountains of virtually free money and government guarantees — while the actual victims in this mess, ordinary taxpayers, are the ones paying for it. Then they hoover up vast sums from the middle and lower floors of society with the aid of a crippled and corrupt state that allows it to rewrite the rules in exchange for the relative pennies the bank throws at political patronage. Converting to a bank-holding company has other benefits as well: Goldman’s primary supervisor is now the New York Fed, whose chairman at the time of its announcement was Stephen Friedman, a former co-chairman of Goldman Sachs. The email was dated September 5, 2008 and marked “Highly Confidential.” Just 10 days later, Lehman Brothers filed bankruptcy, triggering a mass wave of panic and contagion among its derivative counterparties around the globe. Taibblog: Commentary on Politics and the Economy by Matt Taibbi. Which was all well and good, except for a couple of things. By Lucy Burton. “They totally fueled the bubble. As is so often the case, there had been a Depression-era law in place designed specifically to prevent this sort of thing. They’ve been pulling this same stunt over and over since the 1920s — and now they’re preparing to do it again, creating what may be the biggest and most audacious bubble yet. The insidious role of Wall Street banks in the takeover of key federal government posts, in the financing of federal candidates’ political campaigns, in behind-the-scenes enactment of legislation to further their disastrous money schemes, and in the effective takeover of the Presidential transition teams that pick the President’s cabinet, is a public corruption scandal of epic proportion that the front pages of U.S. newspapers have ignored for far too long. This is worse than the bailout: It allows the bank to seize taxpayer money before it’s even collected. New York state regulators are suing Goldman and 25 other underwriters for selling bundles of crappy Countrywide mortgages to city and state pension funds, which lost as much as $100 million in the investments. In this game you were a winner only if you took your money out before the melon hit the pavement. The heads of the Canadian and Italian national banks are Goldman alums, as is the head of the World Bank, the head of the New York Stock Exchange, the last two heads of the Federal Reserve Bank of New York — which, incidentally, is now in charge of overseeing Goldman — not to mention …. They achieve this using the same playbook over and over again. The deceptive practices also caught the attention of Nicholas Maier, the syndicate manager of Cramer & Co., the hedge fund run at the time by the now-famous chattering television asshole Jim Cramer, himself a Goldman alum. Once the Internet bubble burst, Goldman had no incentive to reassess its new, profit-driven strategy; it just searched around for another bubble to inflate. In 2006, the firm’s payroll jumped to $16.5 billion — an average of $622,000 per employee. While the American media fell in love with the story line of a pair of baby-boomer, Sixties-child, Fleetwood Mac yuppies nesting in the White House, it also nursed an undisguised crush on Rubin, who was hyped as without a doubt the smartest person ever to walk the face of the Earth, with Newton, Einstein, Mozart and Kant running far behind. As a leading underwriter of Internet stocks during the boom, Goldman provided profits far more volatile than those of its competitors: In 1999, the average Goldman IPO leapt 281 percent above its offering price, compared to the Wall Street average of 181 percent. Will this market be bigger than the energy futures market? It sounds obvious now, but what the average investor didn’t know at the time was that the banks had changed the rules of the game, making the deals look better than they actually were. Goldman not only survived the crash that wiped out so many of the investors it duped, it went on to become the chief underwriter to the country’s wealthiest and most powerful corporations. There’s Joshua Bolten, Bush’s chief of staff during the bailout, and Mark Patterson, the current Treasury chief of staff, who was a Goldman lobbyist just a year ago, and Ed Liddy, the former Goldman director whom Paulson put in charge of bailed-out insurance giant AIG, which forked over $13 billion to Goldman after Liddy came on board. A Credit Card that Profits from the Rape of Children? Matt Taibbi's great 2010 article for Rolling Stone described how Goldman Sachs manipulates our economy for the benefit of its executives and investors. Save articles for later. “At least with other banks, you could say that they were just dumb — they believed what they were selling, and it blew them up. That summer, as the presidential campaign heated up, the accepted explanation for why gasoline had hit $4.11 a gallon was that there was a problem with the world oil supply. She refused to back down, however, and continued to push for more regulation of the derivatives. They’d been intact since the 1930s.”, Jay Ritter, a professor of finance at the University of Florida who specializes in IPOs, says banks like Goldman knew full well that many of the public offerings they were touting would never make a dime. Specifically, we will ask the group to advise us on: (1) the information that we would need to obtain from a troubled dealer to assess the potential impact of closeout of a dealer’s OTC derivatives books on its counterparties and on financial markets; and (2) the information that a potential acquirer of a troubled dealer’s OTC derivatives book (and possibly also related hedges) to assess the potential risks and returns from such an acquisition. Glass-Steagall had kept the U.S. financial system safe for 66 years by banning Wall Street’s trading houses from owning federally-insured, deposit-taking banks. Goldman used two methods to hide the mess they were selling. Its Goldman Sachs Commodities Index — which tracks the prices of 24 major commodities but is overwhelmingly weighted toward oil — became the place where pension funds and insurance companies and other institutional investors could make massive long-term bets on commodity prices. Goldman Sachs Says Gold, bitcoin as Vampire Squid Fails. Even though the supply of oil was keeping pace with demand, Murti continually warned of disruptions to the world oil supply, going so far as to broadcast the fact that he owned two hybrid cars. Yet both of the major ratings agencies, Moody’s and Standard & Poor’s, rated 93 percent of the issue as investment grade. In 2015 it came bottom in the yearly Harris … The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money. This article was published on 05.15.14. The first effort was the Goldman Sachs Trading Corporation; the bank issued a million shares at $100 apiece, bought all those shares with its own money and then sold 90 percent of them to the hungry public at $104. This is the world we live in now. There’s John Thain, the asshole chief of Merrill Lynch who bought an $87,000 area rug for his office as his company was imploding; a former Goldman banker, Thain enjoyed a multi-billion-dollar handout from Paulson, who used billions in taxpayer funds to help Bank of America rescue Thain’s sorry company. Her latest piece, just out, “The Problem with Putting a BlackRock Alum in Charge of Greening the Economy,” it follows up on her story in June that asked “Is BlackRock the New Vampire Squid?” A new law empowered the Commodity Futures Trading Commission — the very same body that would later try and fail to regulate credit swaps — to place limits on speculative trades in commodities. Moreover, Goldman owns a minority stake in Blue Source LLC, a Utah-based firm that sells carbon credits of the type that will be in great demand if the bill passes. By now almost everyone knows that for decades mortgage dealers insisted that home buyers be able to produce a down payment of 10 percent or more, show a steady income and good credit rating, and possess a real first and last name. Cap-and-trade is going to happen. It was a repeat of both the Internet craze and the housing bubble, when Wall Street jacked up present-day profits by selling suckers shares of a fictional fantasy future of endlessly rising prices. And in this world, some of us have to play by the rules, while others get a note from the principal excusing them from homework till the end of time, plus 10 billion free dollars in a paper bag to buy lunch. Then, in June 1998, Rubin went public to denounce her move, eventually recommending that Congress strip the CFTC of its regulatory authority. By Pam Martens and Russ Martens: January 23, 2020 ~, Protester Wears a Swamp Creature Costume Outside Goldman Sachs Headquarters, January 17, 2017. But it wasn’t the consumption of real oil that was driving up prices — it was the trade in paper oil. Tue 14 Jul 2009 13.55 EDT . The European Stabilization Mechanism, Or How the Goldman Vampire Squid Just Captured Europe. Cohn and Bannon have since left the Trump administration. As Paulson said at the time, “We’re not making those investments to lose money.”. But it was all a lie. And yet prices are up.”, Asked why politicians continue to harp on things like drilling or hybrid cars, when supply and demand have nothing to do with the high prices, Stupak shakes his head. Shafran wrote as follows: “Tim [Geithner, President of the New York Fed] will ask Corrigan to accelerate formation of the private-sector default management group (DMG) that was proposed by CRMPG III. It issued the bank a free pass, called the “Bona Fide Hedging” exemption, allowing Goldman’s subsidiary to call itself a physical hedger and escape virtually all limits placed on speculators. Cohn became a multi-millionaire from the business done in those years, earning $27.5 million in restricted stock and options just in the year 2006. Moody’s projected that less than 10 percent of the loans would default. 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