My blood is boiling again, when I realize just how much money has been given to Goldman Sachs, and how connected the problem-solvers of this financial crisis--Henry Paulson, Tim Geithner, Neel Kashkari-- are to the venerable investment house.
Read this posting from Josh Marshall's talkingpointsmemo.com.
So we need to ask the question again: why is Goldman pretending that it didn't have exposure to the derivatives market crash and wasn't a counterparty to the notorious credit default swaps?These are the figures we know about:
TARP funds: $10 billion plus
AIG securities lending unit: $4.6 billion
Maiden Lane III: $5.8 billion
AIG collateral: $2.5 billionTotal: $22.9 billion plus
"Just for good measure, it's also worth noting that Goldman is getting an additional several hundred million dollars per year in interest savings, according to Gross, thanks to an FDIC program that guarantees bonds issued by banks. Under the program, which is designed to make it easier for banks to raise capital, Goldman has sold $21 billion in bonds since November."
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1 comment:
Hey Zel,
These banks/brokerage houses invested at leverage multiples of 35 to 1. They need the money right now or our financial system will collapse.
However, there has never been a better illustration why America's wealthy needs to pay a lot more taxes. Their asses are being pulled out of the fire after so many of them have made millions. They use the government much more than people in the middle and the upper middle classes.
It is time to get back to a real graduated tax system with a top marginal bracket of 60%. Those who want to leave are welcome but their assets will be subject to a 50% flip tax.
One more thing, if it is not constitutional to tax AIG employees and others who were responsible for this collapse and then bled it with bonuses after receiving TARP money, why is it constitutional that hedge fund managers are taxed at 15% when the rest of us pay 35%?
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