2,093
edits
Changes
Jump to navigation
Jump to search
====Seeking gun permits====
Bloomberg News columnist and Warren Buffett biographer Alice Schroeder reported in December 2009 that some senior Goldman executives sought gun permits and were "loaded up on firearms and ... now equipped to defend themselves if there is a populist uprising against the bank."<ref>Alice Schroeder, "[http://www.bloomberg.com/apps/news?pid=20601039&sid=ahD2WoDAL9h0 Arming Goldman With Pistols Against Public]," Bloomberg News, Dec. 1, 2009.</ref>
SW: More from Ellen
===Role in the crisis===
====Deregulation of Investment Banks====
Goldman Sachs, with Henry Paulson as its CEO before he was named Treasury Secretary in 2006, campaigned successfully to eliminate any effective limits on the amount of leverage the largest investment banks could use. Under pressure from Goldman Sachs in particular, in 2004 the Securities and Exchange Commission removed the 12 to 1 debt to net capital ratio it had previously imposed. The SEC gave the five largest investment banks a special exemption so they could use their own risk models to determine their capital requirements. Goldman Sachs, Bear Stearns, Merrill Lynch, Lehman Brothers and Morgan Stanley were freed to leverage to extremely risky levels, in some cases reaching a ratio of 40 to 1. This piece of deregulation enabled the investment banks to substantially expand their businesses through borrowing, but left them fatally undercapitalized when they suffered losses. <ref>Barry Ritholtz and Aaron Task, Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy, May 2009, p. 145.</ref>
Neil Barofsky, the special inspector general for the Troubled Asset Relief Program, is investigating “whether securities sold by Goldman Sachs Group Inc (GS.N) led to losses at AIG and if the American taxpayer was a victim of fraud.” <ref> Reuters,
[http://www.reuters.com/article/idUSN2011048320100420 “TARP watchdog probes Goldman CDOs, maybe Blackrock”], April 20, 2010.</ref> AIG, the world’s largest insurance company, was effectively nationalized in 2008 when the US government paid $85 billion (ultimately $180 billion) to rescue it from bankruptcy. <ref>MarketWatch, [http://www.marketwatch.com/story/aig-nationalized-as-insurer-signs-up-for-85-billion-fed-loan “AIG slumps after signing up for $85 billion Fed loan”], Sept. 24, 2008.</ref>
====Net capital requirements====
In 1975, the SEC’s trading and markets division ruled that investment banks must maintain a debt-to-net capital ratio of less than 12 to 1. In 2004, following extensive lobbying by Goldman Sachs, and its then-chair, Henry Paulson, and other investment banks, the SEC under chairman Christopher Cox authorized five investment banks to develop their own net capital requirements. This enabled investment banks to push borrowing ratios to as high as 40 to 1.<ref>Stephen Labaton, [http://www.nytimes.com/2008/10/03/business/03sec.html Agency’s ’04 Rule Let Banks Pile Up New Debt], NY Times, October 8, 2008. Retrieved October 9, 2009</ref> These five investment banks were Goldman Sachs, [[Morgan Stanley]], [[Lehman Brothers]], [[Bear Stearns]], and [[Merrill Lynch]]. This very high debt-to-reserves helped lead to the financial crisis of 2008 by weakening the ability of these institutions to recover from losses incurred when the risky CDO and CDS bets failed.<ref>Julie Satow, [http://www.nysun.com/business/ex-sec-official-blames-agency-for-blow-up/86130/ Ex-SEC Official Blames Agency for Blow-Up of Broker-Dealers], NY Sun, September 18, 2008. Retrieved October 9, 2009</ref><ref>Ben Protess, [http://www.propublica.org/article/flawed-sec-program-failed-to-rein-in-investment-banks-101 ‘Flawed’ SEC Program Failed to Rein in Investment Banks], ProPublica, October 1, 2008. Retrieved October 9, 2009</ref>
Lee A. Pickard, who had been Director of the SEC’s Division of Market Regulation when the 1975 12-1 rule was ordered, said of the change, "The SEC modification in 2004 is the primary reason for all of the losses that have occurred."<ref>Julie Satow, [http://www.nysun.com/business/ex-sec-official-blames-agency-for-blow-up/86130/ Ex-SEC Official Blames Agency for Blow-Up of Broker-Dealers], NY Sun, September 18, 2008. Retrieved October 9, 2009</ref>
====Exposing foreign institutions to subprime risk====
In September, 2008, as the financial crisis peaked, Goldman Sachs ceased to be an investment bank and became a bank holding company<ref>[http://www.reuters.com/article/mergersNews/idUSNWEN838420080922 Goldman Sachs to be regulated by Fed], ''Reuters'', Sept 21, 2008, Retrieved Oct 2, 2009.</ref>.
====Net capital requirements====In 1975, the SEC’s trading and markets division ruled that investment banks must maintain a debt-to-net capital ratio of less than 12 to 1. In 2004, following extensive lobbying by Goldman Sachs, and its then-chair, Henry Paulson, and other investment banks, the SEC under chairman Christopher Cox authorized five investment banks to develop their own net capital requirements. This enabled investment banks to push borrowing ratios to as high as 40 to 1.<ref>Stephen Labaton, [http://www.nytimes.com/2008/10/03/business/03sec.html Agency’s ’04 Rule Let Banks Pile Up New Debt], NY Times, October 8, 2008. Retrieved October 9, 2009</ref> These five investment banks were Goldman Sachs, [[Morgan Stanley]], [[Lehman Brothers]], [[Bear Stearns]], and [[Merrill Lynch]]. This very high debt-to-reserves helped lead to the financial crisis of 2008 by weakening the ability of these institutions to recover from losses incurred when the risky CDO and CDS bets failed.<ref>Julie Satow, [http://www.nysun.com/business/ex-sec-official-blames-agency-for-blow-up/86130/ Ex-SEC Official Blames Agency for Blow-Up of Broker-Dealers], NY Sun, September 18, 2008. Retrieved October 9, 2009</ref><ref>Ben Protess, [http://www.propublica.org/article/flawed-sec-program-failed-to-rein-in-investment-banks-101 ‘Flawed’ SEC Program Failed to Rein in Investment Banks], ProPublica, October 1, 2008. Retrieved October 9, 2009</ref> Lee A. Pickard, who had been Director of the SEC’s Division of Market Regulation when the 1975 12-1 rule was ordered, said of the change, "The SEC modification in 2004 is the primary reason for all of the losses that have occurred."<ref>Julie Satow, [http://www.nysun.com/business/ex-sec-official-blames-agency-for-blow-up/86130/ Ex-SEC Official Blames Agency for Blow-Up of Broker-Dealers], NY Sun, September 18, 2008. Retrieved October 9, 2009</ref> ===Goldman Benefits from Lehman Failure and AIG Bailout====
Questions were raised about the federal government's decision to allow the collapse of [[Lehman Brothers]], a Goldman Sachs competitor, and the decision to prop up [[American International Group]], Inc.
=====Lehman Brothers Bankruptcy=====
Goldman Sachs is one of the firms being investigated for possibly helping to bankrupt Lehman Brothers, an investment bank competitor, by short selling Lehman shares. A bankruptcy judge has given Lehman subpoena power, and it is using this power to require Goldman Sachs and others to produce documents. Lehman representatives say they are assisting the investigation of the firm’s bankruptcy which might lead to “possible prosecution of certain litigation” against those that damaged its business. <ref>Bloomberg – Businessweek, [http://www.businessweek.com/news/2010-04-19/lehman-subpoenas-goldman-sachs-sac-capital-in-probe-update1-.html “Lehman Subpoenas Goldman Sachs, SAC Capital in Probe”], April 19, 2010.</ref>
The bank examiner’s report on the Lehman Brothers bankruptcy concluded that the sale of Lehman contracts by CME Group resulted in a $1.2 billion loss, and there may be a basis for those with stakes in Lehman to sue. The bank examiner found that: “The bulk sale process (including the Goldman Sachs sale arranged by LBCS) resulted in a substantial loss to LBI (Lehman Brothers Inc.) exceeding $1.2 billion over the close-of-business liabilities associated with the positions, and a net loss of close to $100 million over the SPAN Risk (margin) requirements. Thus, LBI may have a colorable claim against CME, or any of the firms that bought LBI’s positions at a steep discount during the liquidation ordered by the CME, for the losses that LBI sustained as a result of the forced sale of house positions held for the benefit of LBI and its affiliates.” <ref>Report of Anton R. Valukas, Examiner, re Lehman Brothers Holdings Inc., United States Bankruptcy Court Southern District of New York, [http://amlawdaily.typepad.com/unredacted.pdf] Volume 5 of 9, pps. 1854 and 1855.</ref>
=====AIG Bailout=====
After the $182.5 billion taxpayer bailout of AIG<ref>[http://www.usatoday.com/money/industries/insurance/2009-08-20-repay-bailout-aig_N.htm AIG shares bounce as CEO hopes to repay bailout funds], ''USA Today'', August 20, 2009. Accessed October 7, 2009.</ref>, Goldman received $12.9 billion from AIG in the form of collateral that Goldman already had in its possession and a cash settlement of ongoing margin disputes. $90 billion of the bailout money provided to [[AIG]] by the government went directly to banks, including this $12.9 billion to Goldman Sachs<ref>CBS News [http://www.cbsnews.com/stories/2009/03/16/business/main4867408.shtml $90B Of AIG's Federal Rescue Went To Banks], ''CBS News'', March 16, 2009, retrieved Oct 1, 2009.</ref>. Foreign banks were also major recipients of the AIG bailout funds prompting an investigation by New York Attorney General Andrew Cuomo.
======Benefits to Goldman Sachs of AIG Bailout======
Some financial analysts have argued that in calculating Goldman Sachs’ government bailout, the total should include the $12.9 billion in government funds that flowed from the New York Federal Reserve through AIG to Goldman Sachs. Goldman Sachs was paid full-value for collateral calls on debt swaps it had made with AIG, and received more of AIG’s bailout money than any other firm. It also received AIG bailout money through deals it had with Societe Generale, a French bank that received $11 billion of the AIG bailout. <ref>Gretchen Morgenson and Louse Story, “Testy Conflict With Goldman Helped Push A.I.G. to Edge,”[ http://www.nytimes.com/2010/02/07/business/07goldman.html?pagewanted=all] The New York Times, February 6, 2010.</ref>
A Wall Street Journal story draws on a report by the inspector general of TARP to rebut Goldman Sachs’ claim that it would not have suffered if the government had allowed AIG to go under: “If AIG collapsed and markets continued to swoon, Goldman would have had to make payments to the other trading firms and been unable to collect on protection it had bought from AIG.” <ref>Wall Street Journal, “Report Rebuts Goldman's Claim on AIG,” [http://online.wsj.com/article/SB10001424052748704538404574542192562568738.html] November 17, 2009.</ref>
=====AIG and Goldman Connections=====
Stephen Friedman was chair of the New York Fed and also sat on the board of Goldman Sachs in 2008 when the Fed organized the bailout of AIG. Between December 2008 and January 2009 Friedman bought over $1 million in shares in Goldman Sachs. <ref>Hugh Son, “Bernanke Asked by Towns on Friedman’s Goldman Stake,” Businessweek, March 19, 2010.</ref> Goldman Sachs CEO Lloyd Blankfein was present at the September 15, 2008 New York Fed meeting where the bailout of AIG was discussed. <ref>Bloomberg News, “Goldman, Merrill Collect Billions After Fed's AIG Bailout Loans,”[ http://www.bloomberg.com/apps/news?pid=20601087&sid=aTzTYtlNHSG8] September 29, 2008.</ref> On September 17, 2008 Treasury Secretary Henry Paulson, the former Goldman Sachs CEO, endorsed the New York Fed’s bailout of AIG. Edward Liddy, a director of Goldman Sachs, was appointed by Paulson to head the nationalized AIG. <ref>Julie Creswell and Ben White, “The Guys From ‘Government Sachs’,” [http://www.nytimes.com/2008/10/19/business/19gold.html?_r=4&pagewanted=all], The New York Times, October 17, 2008.</ref>
=====Geithner and AIG=====
At the end of 2008, with AIG running out of cash, negotiations were underway to determine what percentage AIG would pay on its obligations to credit default swap (CDS) counterparties, including [[Goldman Sachs Group Inc.]], [[Merrill Lynch]] & Co., Paris-based [[Societe Generale SA]] and Frankfurt-based [[Deutsche Bank AG]]. Negotiations had reached discounts of as much as 40 cents on the dollar. However the government took over AIG on Sept. 16, 2008, and beginning November 3 negotiations were taken over by New York Fed President Timothy Geithner, the Treasury Department and the Federal Reserve. After less than a week of negotiations, the New York Fed instructed AIG to pay 100 cents on the dollar, costing taxpayers at least $13 billion<ref name="Bloomberg">Richard Teitelbaum and Hugh Son, [http://www.bloomberg.com/apps/news?pid=20601109&sid=a7T5HaOgYHpE New York Fed’s Secret Choice to Pay for Swaps Hits Taxpayers], Bloomberg, October 27, retrieved November 3, 2009.</ref>.
As Goldman's reputation in the general public suffered in late 2008 and 2009, several Goldman spokesmen began to invoke religious themes in their media appearances and public events. "The injunction of Jesus to love others as ourselves is an endorsement of self-interest," Goldman Sachs International adviser Brian Griffiths said on October 20, 2009, to a crowd in St. Paul’s Cathedral in London. "We have to tolerate the inequality as a way to achieving greater prosperity and opportunity for all."<ref>Simon Clark and Caroline Binham, "[http://www.michaelmoore.com/words/latest-news/profit-not-satanic-barclays-says-after-goldman-invokes-jesus Profit 'Not Satanic,' Barclays Says, After Goldman Invokes Jesus]," Bloomberg, November 4, 2009.</ref> Lloyd Blankfein similarly was quoted in the ''Sunday Times'' describing his company's work as having "a social purpose" and himself as "doing God’s work."<ref>John Arlidge, "[http://www.timesonline.co.uk/tol/news/world/us_and_americas/article6907681.ece I'm doing 'God's work'. Meet Mr Goldman Sachs]," ''Sunday Times'', November 8, 2009.</ref> While he later said this was meant as a joke, he also told one of Vanity Fair’s editors that “What’s good for Goldman Sachs is good for America.”<ref>Bethany McLean, “Meet the Real Villain of the Financial Crisis,” The New York Times, April 26, 2010.</ref> Blankfein has said that as an investment bank, Goldman Sachs does a lot for the economy by allocating capital, raising funds for companies, and launching new businesses. <ref>PBS Newshour, “Unraveling the Profit Puzzle at Goldman Sachs,”[http://www.pbs.org/newshour/bb/business/jan-june10/goldmansachs_02-11.html]February 11, 2010. </ref>
====Apologies====
Goldman Sachs canceled its annual Christmas party in 2009, and it prohibited employees from paying for parties in their own homes. It also instructed employees not to gather in any parties of 12 or more people.<ref>Jessica Toonkel Marquez, "[http://www.crainsnewyork.com/article/20091112/FREE/911129993 Bah! Humbug! Goldman says no to Christmas party]," Crain's New York Business, Nov. 12, 2009; John Carney, "[http://www.businessinsider.com/goldman-tells-employees-not-to-have-christmas-parties-in-their-homes-2009-11 Goldman Tells Employees Not To Have Christmas Parties In Their Homes]," The Business Insider, Nov. 20, 2009; Courtney Comstock, "[http://www.businessinsider.com/goldman-employees-arent-allowed-to-hang-out-in-groups-of-12-or-more-2009-11 Goldman Employees Aren't Allowed To Hang Out In Groups Of 12 Or More]," The Business Insider, Nov. 30, 2009.</ref>
==Other controversies== ===Greek Financial Crisis=== In April 2010, Greece was at risk of defaulting on its national debt. Greece’s financial crisis threatens French, German and other European banks, which hold $193 billion in Greek government bonds. One financial analyst observed that “This crisis is beginning to look much like the sub-prime mortgage meltdown, when the falling value of real estate loans created a vicious circle in credit markets.”<ref>Andrew Willis, “Greece's woes weigh on Europe's banks,” The Globe and Mail, April 28, 2010.</ref> Greece has been able to disguise the true nature of its fiscal problems due to a deal Goldman Sachs structured for it in 2002. The European Union has strict rules about how much debt a member government can carry and how large of a deficit they can run. But through a Goldman Sachs designed currency swap that involved what has been called “fictional exchange rates”, Greece was able to hide the size of its debt. Goldman Sachs went on to arrange $15 billion in government bond sales for Greece but did not disclose the swap deal, possibly leading investors to be fooled about the real value of the bonds. <ref> Elisa Martinuzzi, “Goldman Sachs, Greece Didn’t Disclose Swap Contract,” Businsweek, February 17, 2010.</ref> ===Minimal Tax Payments=== Goldman Sachs paid $14 million in taxes in 2008, a drop from $6 billion in 2007, and an effective tax rate of 1%. The bank made $2.3 billion in profits and paid out $10.9 billion in employee benefits and compensation. Goldman Sachs attributed its lower taxes to “changes in geographic earnings mix”. A tax expert commented that “Clearly they have taken steps to ensure that a lot of their income is earned in lower-tax jurisdictions.” <ref>Christine Harper, “Goldman Sachs’s Tax Rate Drops to 1%, or $14 Million,”[ http://www.bloomberg.com/apps/news?pid=20601110&sid=a6bQVsZS2_18] December 16, 2008.</ref> ===Phoning in to White House meeting====
President Obama summoned leading financial sector executives to the White House for a meeting on December 14, 2009, at which he implored the companies to cease opposing financial reform and cooperate with homeowners struggling with their mortgages. Goldman CEO Lloyd Blankfein was one of three who failed to arrive in person and instead participated via conference call.<ref>Andrew Ross Sorkin, "[http://dealbook.blogs.nytimes.com/2009/12/15/putting-obama-on-hold-in-a-hint-of-whos-boss/ Putting Obama on Hold, in a Hint of Who’s Boss]," DealBook (New York Times blog), Dec. 15, 2009.</ref>
===Seeking gun permits===
Bloomberg News columnist and Warren Buffett biographer Alice Schroeder reported in December 2009 that some senior Goldman executives sought gun permits and were "loaded up on firearms and ... now equipped to defend themselves if there is a populist uprising against the bank."<ref>Alice Schroeder, "[http://www.bloomberg.com/apps/news?pid=20601039&sid=ahD2WoDAL9h0 Arming Goldman With Pistols Against Public]," Bloomberg News, Dec. 1, 2009.</ref>
==Goldman Sachs’ Post-crisis Profits==
===Revolving door influence===
There is a long list of people who previously worked for Goldman Sachs who have held senior positions in governments around the world, as well as of people who formerly worked for government who now work for Goldman Sachs. During the financial crisis, critics noted “that decisions that Mr. Paulson and other Goldman alumni make at Treasury directly affect the firm’s own fortunes. They also question why Goldman, which with other firms may have helped fuel the financial crisis through the use of exotic securities, has such a strong hand in trying to resolve the problem.”<ref>Julie Creswell and Ben White, [http://www.nytimes.com/2008/10/19/business/19gold.html?_r=4&pagewanted=all “The Guys From ‘Government Sachs’”], The New York Times, October 17, 2008.</ref>
Goldman Sachs had strong connections to the government officials running TARP under the Bush administration. Henry Paulson had been CEO of Goldman Sachs prior to being named Treasury Secretary by President Bush. At the height of the financial crisis, Paulson hired Edward C. Forst, a Goldman Sachs executive and shareholder, to advise him on TARP. Paulson also hired Neel Kashkari, a Goldman Sachs vice president, to run TARP. Kashkari in turn hired former Goldman Sachs executive Reuben Jeffrey as TARP’s chief investment officer. ref>Julie Creswell and Ben White, “The Guys From ‘Government Sachs’,” [http://www.nytimes.com/2008/10/19/business/19gold.html?_r=4&pagewanted=all], The New York Times, October 17, 2008.</ref>
Throughout this time, Treasury Secretary Henry Paulson, formerly a Goldman Sachs chief executive was aided in his administration of the Treasury Department by numerous advisers who also had personal ties to Goldman Sachs.<ref>[http://online.wsj.com/article/SB125088307063549883.html Geithner Says No Tilt to Goldman], ''Wall Street Journal'', accessed October 7, 2009.</ref>
====Political appointees and figures====
*[[Robert Rubin]], Former United States Treasury Secretary
*[[Mario Draghi]], governor of the Bank of Italy (2006- )[94]
*[[Massimo Tononi]], Italian deputy treasury chief (2006-2008)[94]
====Former Goldman Sachs Employees Hired by the Obama Administration====
Mark Patterson: former Goldman Sachs lobbyist, currently Treasury chief of staff; <ref>Mother Jones, [http://motherjones.com/politics/2009/03/geithner-aide-fought-ceo-pay-reform “Top Geithner Aide Fought CEO Pay Reform”], Mother Jones, March 20, 2009.</ref>
Gary Gensler: former Goldman partner, currently chair of the Commodity Futures Trading Commission. <ref>Times Topics: Gary Gensler, [http://topics.nytimes.com/top/reference/timestopics/people/g/gary_gensler/index.html?inline=nyt-per] The New York Times, April 7, 2010.</ref>
Gene Sperling: former Goldman consultant earning $887,727 from the bank in 2008, currently Counselor to Treasury Secretary Timothy Geithner. <ref>Bloomberg News, [http://www.bloomberg.com/apps/news?pid=20601087&sid=abo3Zo0ifzJg “Geithner Aides Reaped Millions Working for Banks, Hedge Funds”], October 14, 2009.</ref>
Diana Farrell: former Goldman employee, currently deputy director of the White House’s National Economic Council. <ref>The White House, [http://www.whitehouse.gov/the_press_office/ObamaAnnouncesDeputyDirectorsfortheNationalEconomicCouncil/ “President Obama Announces Deputy Directors for the National Economic Council”], January 28, 2009.</ref>
====Former Goldman Sachs Employees Hired by the Bush Administration====
Joshua Bolten: former Goldman Sachs executive, Chief of Staff to President Bush.<ref>Julie Creswell and Ben White, [http://www.nytimes.com/2008/10/19/business/19gold.html?_r=4&pagewanted=all “The Guys From ‘Government Sachs’”], The New York Times, October 17, 2008.</ref>
Henry Paulson: former Goldman Sachs CEO, appointed Treasury Secretary in 2006 on Bolten’s recommendation.<ref>Julie Creswell and Ben White, [http://www.nytimes.com/2008/10/19/business/19gold.html?_r=4&pagewanted=all “The Guys From ‘Government Sachs’”], The New York Times, October 17, 2008.</ref>
Neel T. Kashkari: former Goldman Sachs investment banker, hired as Interim Assistant Secretary of the Treasury for Financial Stability in 2006, headed the Office of Financial Stability during the financial crisis and given responsibility for TARP.<ref>Julie Creswell and Ben White, [http://www.nytimes.com/2008/10/19/business/19gold.html?_r=4&pagewanted=all “The Guys From ‘Government Sachs’”], The New York Times, October 17, 2008.</ref>
Reuben Jeffrey: previously Under Secretary of State for Economic, Energy and Agricultural Affairs, Chairman of the Commodity Futures Trading Commission, worked for 18 years at Goldman Sachs, hired by Kashkari in 2008 as interim chief investment officer for TARP. <ref>Reuben Jeffrey III, Barclays [http://group.barclays.com/About-us/Management-structure/The-Board/Biography/1231782963885.html “About Us”], accessed April 28, 2010.</ref> <ref>Julie Creswell and Ben White, “The Guys From ‘Government Sachs’,” [http://www.nytimes.com/2008/10/19/business/19gold.html?_r=4&pagewanted=all], The New York Times, October 17, 2008.</ref>
Dan Jester: former Goldman Sachs strategic officer, hired on contract to advise Henry Paulson during the crisis, advised on AIG, GSEs, TARP and other bailouts. <ref>William Cohan, “Mystery Men of the Financial Crisis,” The New York Times, February 4, 2010.</ref>
Steve Shafran: former Goldman Sachs trader in Asian private equity, hired by Paulson to handle student loan and money market issues.<ref>Julie Creswell and Ben White, [http://www.nytimes.com/2008/10/19/business/19gold.html?_r=4&pagewanted=all “The Guys From ‘Government Sachs’”], The New York Times, October 17, 2008.</ref>
Kendrick R. Wilson III: former Goldman Sachs executive, enlisted as unpaid adviser to canvass banks on reaction to Treasury initiatives during crisis.<ref>Julie Creswell and Ben White, [http://www.nytimes.com/2008/10/19/business/19gold.html?_r=4&pagewanted=all “The Guys From ‘Government Sachs’”], The New York Times, October 17, 2008.</ref>
Edward C. Forst: former Goldman Sachs chief administrator, hired as advisor to Paulson during the crisis, became head of Goldman Sachs asset management division in 2010.<ref> The New York Times, “Goldman Picks New Leader in Asset Management Unit,”[http://www.nytimes.com/2010/02/13/business/13goldman.html] February 12, 2010.</ref> <ref>Julie Creswell and Ben White, [http://www.nytimes.com/2008/10/19/business/19gold.html?_r=4&pagewanted=all “The Guys From ‘Government Sachs’”], The New York Times, October 17, 2008.</ref>
Robert K. Steel: former Goldman Sachs vice chairman, hired by Paulson Undersecretary of the Treasury for Domestic Finance in 2006. <ref>Julie Creswell and Ben White, [http://www.nytimes.com/2008/10/19/business/19gold.html?_r=4&pagewanted=all “The Guys From ‘Government Sachs’”], The New York Times, October 17, 2008.</ref>
Ed Liddy: former Goldman Sachs director, appointed by Paulson as CEO of AIG.<ref>Julie Creswell and Ben White, [http://www.nytimes.com/2008/10/19/business/19gold.html?_r=4&pagewanted=all “The Guys From ‘Government Sachs’”], The New York Times, October 17, 2008.</ref>
====Former Goldman Sachs Employees Hired by the Clinton Administration====
Robert E. Rubin: former co-partner of Goldman Sachs, where he worked for twenty six years. Appointed by Clinton in 1993 to be first director of the National Economic and then appointed as Treasury Secretary, a post he held from 1995 to 1999. <ref>Treasury Department, “History of the Treasury – Robert E. Rubin”, [http://www.ustreas.gov/education/history/secretaries/rerubin.shtml] accessed April 28, 2010.</ref>
====Former Government Officials Hired by Goldman Sachs====
Richard Gephardt: Goldman Sachs lobbyist, former House Democrat Leader. <ref>The Hill, “Well-connected Goldman Sachs uniquely positioned to fight fraud allegations,” [http://thehill.com/business-a-lobbying/93687-goldman-sachs-is-uniquely-positioned-to-fight-charges] April 22, 2010. </ref>
Harold Ford Sr.: Goldman Sachs lobbyist, former Representative, (D-Tenn.). <ref>The Hill, “Well-connected Goldman Sachs uniquely positioned to fight fraud allegations,” [http://thehill.com/business-a-lobbying/93687-goldman-sachs-is-uniquely-positioned-to-fight-charges] April 22, 2010. </ref>
Steve Elmendorf: Goldman Sachs lobbyist, former deputy campaign manager for John Kerry and aide to Richard Gephardt. <ref>The Hill, “Well-connected Goldman Sachs uniquely positioned to fight fraud allegations,” [http://thehill.com/business-a-lobbying/93687-goldman-sachs-is-uniquely-positioned-to-fight-charges] April 22, 2010. </ref>
Kenneth Duberstein: Goldman Sachs lobbyist, Reagan White House chief of staff. <ref>The Hill, “Well-connected Goldman Sachs uniquely positioned to fight fraud allegations,” [http://thehill.com/business-a-lobbying/93687-goldman-sachs-is-uniquely-positioned-to-fight-charges] April 22, 2010. </ref>
Eric Ueland: Goldman Sachs lobbyist, former Senate Majority Leader Bill Frist’s (R-Tenn.) chief of staff.<ref>The Hill, “Well-connected Goldman Sachs uniquely positioned to fight fraud allegations,” [http://thehill.com/business-a-lobbying/93687-goldman-sachs-is-uniquely-positioned-to-fight-charges] April 22, 2010. </ref>
Robert Zoellick: hired by Goldman Sachs as managing director in 2006, former US Trade Representative 2001 – 2005, Deputy of the US State State Department 2005 – 2006, , n became World Bank President in 2007. <ref>Robert B. Zoellick, Biography, [http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/ORGANIZATION/EXTPRESIDENT2007/0,,contentMDK:21394208~menuPK:64822289~pagePK:64821878~piPK:64821912~theSitePK:3916065,00.html] World Bank – Office of the President, accessed April 28, 2010.</ref>
====Goldman Sachs Connections with the Federal Reserve====
William C. Dudley: former Goldman Sachs partner and managing director, hired by then President of the New York Fed Timothy Geithner to work at the New York Fed in 2007, became New York Fed’s President in 2009. <ref>Federal Reserve Bank of New York, “About the Fed,”[http://www.newyorkfed.org/aboutthefed/orgchart/dudley.html] accessed April 28, 2010.</ref>
[[Stephen Friedman]]: former Goldman Sachs chairman, appointed to the New York Fed in the category reserved for representatives of the public, chaired New York Fed, chaired President Bush’s Foreign Intelligence Advisory Board. Resigned from New York Fed in 2009 due to controversial purchase of Goldman Sachs shares. <ref>Hugh Son, “Bernanke Asked by Towns on Friedman’s Goldman Stake,” Businessweek, March 19, 2010.</ref>
Gerald Corrigan: currently Goldman Sachs managing director, former CEO and President of the New York Fed from 1985 to 1993. <ref> The New York Federal Reserve, “About the Fed – E. Gerald Corrigan,” [http://www.newyorkfed.org/aboutthefed/ECorriganbio.html] accessed April 28, 2010.</ref> <ref>The New York Times, “Dodd Assails Bankers’ Opposition to Overhaul,”[ http://dealbook.blogs.nytimes.com/2010/02/04/dodd-assails-bankers-opposition-to-financial-proposals] February 4, 2010.</ref>
====Other notable Goldman connections====
[[Jon Corzine]]: former Goldman Sachs CEO and chairman, US senator and New Jersey governor. <ref>The New York Times, “Times Topics: Jon S. Corzine,” [http://topics.nytimes.com/top/reference/timestopics/people/c/jon_s_corzine/index.html?scp=1-spot&sq=jon%20corzine%20&st=cse] accessed April 28, 2010.</ref>
Mark Carney: worked at Goldman Sachs for thirteen years, now Government of the Bank of Canada. <ref>CBC News, “Mark Carney named next Bank of Canada governor,” [http://www.cbc.ca/money/story/2007/10/04/bankgov.html]October 4, 2007.</ref>
Mario Draghi: former Goldman Sachs vice-president and managing director in London, now governor of Bank of Italy, head of the Financial Stability Board and a member of the European Central Bank governing council. <ref>Financial Times, “Goldman battles to save state links,” http://www.ft.com/cms/s/0/1190fbe6-4e6f-11df-b48d-00144feab49a.html, April 23, 2010.</ref>
=====South African officials=====
Prior to South Africa’s first democratic elections in 1994, Goldman Sachs trained ANC economists. Of those Goldman Sachs trained, Tito Mboweni became South Africa’s Reserve Bank Governor. On his retirement from the Bank Mboweni was hired by Goldman Sachs as an advisor. Lesetja Kganyagom, another Goldman Sachs trainee, is the director-general of the National Treasury. <ref>Business Report, [http://www.busrep.co.za/index.php?fSectionId=552&fArticleId=5444576] “Troubled Goldman Sachs appoints Mboweni,”April 26, 2010. </ref>
==Personnel==
*John Kenneth Galbraith, [http://books.google.it/books?id=l-xRKtKEpTwC&pg=PA61&lpg=PA61&dq=Shenandoah+corporation&source=bl&ots=70h38ewwn3&sig=_3YkAIbV_KdGRdN1ssZM8qs1CHs&hl=it&ei=iBfaScDTHo2T_Qbk9eTTDQ&sa=X&oi=book_result&ct=result&resnum=9#v=onepage&q=Shenandoah%20corporation&f=false “The Great Crash”], The Great Crash 1929, Copyright 1954.
* McClatchy newspaper group five-part investigation of Goldman Sachs: [http://www.mcclatchydc.com/goldman\]
* Senate Subcommittee on Investigations, [http://hsgac.senate.gov/public/index.cfm?FuseAction=Hearings.Hearing&Hearing_id=f07ef2bf-914c-494c-aa66-27129f8e6282 “Wall Street and the Financial Crisis: The Role of Investment Banks”]
* Julie Creswell and Ben White, [http://www.nytimes.com/2008/10/19/business/19gold.html?_r=4&pagewanted=all “The Guys From ‘Government Sachs’”], The New York Times, October 17, 2008.
===External articles===
