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PoliCon
07-27-2010, 04:28 PM
By Karen Mracek and Thomas Beaumont, Des Moines Register
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.

Goldman Sachs disclosed the list of companies to the Senate Finance Committee after a threat of subpoena from Sen. Chuck Grassley, R-Ia.

Asked the significance of the list, Grassley said, "I hope it's as simple as taxpayers deserve to know what happened to their money."

He added, "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."

Grassley said he was reserving judgment on the appropriateness of U.S. taxpayer money ending up overseas until he learns more about the 32 entities.

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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."

Goldman had not disclosed the names of the counterparties it paid in late 2008 until Friday, despite repeated requests from Elizabeth Warren, chairwoman of the Congressional Oversight Panel.

"I think we didn't get the information because they consider it very embarrassing," Grassley said, "and they ought to consider it very embarrassing."

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The initial $85 billion to bail out AIG was supplemented by an additional $49.1 billion from the Troubled Asset Relief Program, known as TARP, as well as additional funds from the Federal Reserve. AIG's debt to U.S. taxpayers totals $133.3 billion outstanding.

"The only thing I can tell you is that people have the right to know, and the Fed and the public's business ought to be more public," Grassley said.

The list of companies receiving money includes a few familiar foreign banks, such as the Royal Bank of Scotland and Barclays.

DZ AG Deutsche Zantrake Genossenschaftz Bank, a German cooperative banking group, received $1.2 billion, more than a quarter of the money Goldman paid out.

Warren, in testimony Wednesday, said that the rescue of AIG "distorted the marketplace by turning AIG's risky bets into fully guaranteed transactions. Instead of forcing AIG and its counterparties to bear the costs of the company's failure, the government shifted those costs in full onto taxpayers."

Grassley stressed the importance of transparency in the marketplace, as well as in the government's actions.

"Just like the government, markets need more transparency, and consequently this is some of that transparency because we've got to rebuild confidence to make the markets work properly," Grassley said.

AIG received the bailout of $85 billion at the discretion of the Federal Reserve Bank of New York, which was led at the time by Timothy Geithner. He now is U.S. treasury secretary.

"I think it proves that he knew a lot more at the time than he told," Grassley said. "And he surely knew where this money was going to go. If he didn't, he should have known before they let the money out of their bank up there."

An attempt to reach Geithner Friday night through the White House public information office was unsuccessful.

Grassley has for years pushed to give the Government Accountability Office more oversight of the Federal Reserve.

U.S. Rep. Bruce Braley, a Waterloo Democrat, said he would propose that the House subcommittee on oversight and investigations convene hearings on the need for more Federal Reserve oversight. Braley is a member of the subcommittee.

Braley said of Geithner, "I would assume he would be someone we would want to hear from because he would have firsthand knowledge."

Braley also noted that the AIG bailout was negotiated under President George W. Bush, a Republican.

He said he was confident that the financial regulatory reform bill signed by President Obama this week would help provide better oversight than the AIG bailout included.

"There was no regulatory framework in place," Braley said. "We had to put something in place to begin reining them in. I'm confident they will begin to be able to do that."

http://www.usatoday.com/money/industries/banking/2010-07-24-goldman-bailout-cash_N.htm

Gingersnap
07-27-2010, 08:41 PM
Warren, in testimony Wednesday, said that the rescue of AIG "distorted the marketplace by turning AIG's risky bets into fully guaranteed transactions. Instead of forcing AIG and its counterparties to bear the costs of the company's failure, the government shifted those costs in full onto taxpayers."

Ya think? :rolleyes:

Satanicus
07-28-2010, 10:28 AM
The Bush administration should have put some conditions on all that bailout money.

djones520
07-28-2010, 10:35 AM
The Bush administration should have put some conditions on all that bailout money.

Congress that wrote the law. Don't you know anything about how our Constitution works?

PoliCon
07-28-2010, 10:36 AM
The Bush administration should have put some conditions on all that bailout money.

Fuckface - The Democrat controlled CONGRESS should have put conditions on that bailout money. :rolleyes: I love how it's Bush's fault that your pals in the Senate fucked up. :rolleyes:

Satanicus
07-28-2010, 11:37 AM
Congress that wrote the law. Don't you know anything about how our Constitution works?

Oh , so are you now claiming that Bush and his Treasury Sec. didn't ask for the bailout money with no strings attached ?

Bush asked Congress for exactly what he got ... But you now blame the Dems ?

The bailout was Bushs idea , he said he needed a blank check in a matter of days , or the nation would collapse.

djones520
07-28-2010, 11:41 AM
Oh , so are you now claiming that Bush and his Treasury Sec. didn't ask for the bailout money with no strings attached ?

Bush asked Congress for exactly what he got ... But you now blame the Dems ?

The bailout was Bushs idea , he said he needed a blank check in a matter of days , or the nation would collapse.

Are you saying he did? Where is the proof?

Satanicus
07-28-2010, 11:55 AM
Are you saying he did? Where is the proof?

So, Now you want proof that Bush and his Treasury Secratary asked Congress for the bailout money ?

Are you for real ? ... The TARP program is still active and you already forgot who's idea it was ?

Thats a new low , even for you.

fettpett
07-28-2010, 06:10 PM
Oh , so are you now claiming that Bush and his Treasury Sec. didn't ask for the bailout money with no strings attached ?

Bush asked Congress for exactly what he got ... But you now blame the Dems ?

The bailout was Bushs idea , he said he needed a blank check in a matter of days , or the nation would collapse.

um...well the President can ask for whatever the fuck they want. However it's Congress' JOB to write the law and put whatever restrictions they want on the money. Guess what? they didn't do that. All 537 (including Bush and Geitner) are at fault for fucking this one up. I'll throw Obama in too for continuing on the bailouts.

namvet
07-28-2010, 10:12 PM
So, Now you want proof that Bush and his Treasury Secratary asked Congress for the bailout money ?

Are you for real ? ... The TARP program is still active and you already forgot who's idea it was ?

Thats a new low , even for you.

what was the TARP program for???

The Troubled Asset Relief Program, commonly referred to as TARP or RCP, is a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector which was signed into law by U.S. President George W. Bush on October 3, 2008. It is the largest component of the government's measures in 2008 to address the subprime mortgage crisis which has now been proven to be created by YOUR democraps !!!!

the DNC should be abolished. its the biggest terrorists organization this country faces. and you played a part !!!!

PoliCon
07-28-2010, 10:28 PM
So, Now you want proof that Bush and his Treasury Secratary asked Congress for the bailout money ?

Are you for real ? ... The TARP program is still active and you already forgot who's idea it was ?

Thats a new low , even for you. so then provide the proof herpaderp

Satanicus
07-29-2010, 07:07 AM
And now we have this ...

The CU is asking for proof that the bailout was the idea of Bush and his Treasury sec.

Imagine that , the CU will now pretend the GOP had nothing to do with it.

Take a bow idiots.

lacarnut
07-29-2010, 08:16 AM
And now we have this ...

The CU is asking for proof that the bailout was the idea of Bush and his Treasury sec.

Imagine that , the CU will now pretend the GOP had nothing to do with it.

Take a bow idiots.

You have half the story correct. However, Bush and the Treasury Sec. can not spend a dime without authorization and FUNDING from Congress. Congressional Repubs and Democrats voted for this cluster-fuck. Then Bush signed the bill into law with the approval of many, many, many, many Democrats.

You are one of the dumbest liberals/trolls that has ever graced CU. You do not even understand the basic workings of government. BTW, the last former Treasury Sec. is not a tax cheat like the present one is.

PoliCon
07-29-2010, 01:11 PM
And now we have this ...

The CU is asking for proof that the bailout was the idea of Bush and his Treasury sec.

Imagine that , the CU will now pretend the GOP had nothing to do with it.

Take a bow idiots.

Who passes laws and bills Stanicus?

asdf2231
07-30-2010, 02:12 PM
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fixt