Wednesday, September 30, 2009

RealityZone; A New Era ?: US secretly tried to make deal with Goldman Sachs in wake of financial crisis

RealityZone; A New Era ?: US secretly tried to make deal with Goldman Sachs in wake of financial crisis

3 comments:

  1. so, i must ask one more time. is goldman sachs too big to fail? how dirty is this company? how deep does it go into our financial system. and more importantly how deep is their dirt within the bowels of our government?

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  2. A Short Question For Senior Officials Of The New York Fed

    Goldman Sachs became a bank holding company, which enabled it to borrow directly from the Federal Reserve. It also became subject to supervision by the Federal Reserve Board (with the NY Fed on point) Goldman is also currently engaged in private equity investments in nonfinancial firms around the world, as seen for example in its recent deal with Geely Automotive Holdings in China (People’s Daily; CNBC). US banks or bank holding companies would not generally be allowed to undertake such transactions
    Would someone from the NY Fed kindly explain the precise nature of the waiver that has been granted to Goldman so that it can operate in this fashion?

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  3. Goldman to be paid $1bn if CIT fails
    - Goldman Sachs stands to receive a payment of $1bn – while US taxpayers would lose $2.3bn – if embattled commercial lender CIT files for Chapter 11 bankruptcy protection, people familiar with the matter said. The payment stems from the structure of a $3bn rescue finance package that Goldman extended to CIT on June 6 2008, about five months before the Treasury bought $2.3bn in CIT preferred shares to prop it up at the height of the crisis. The potential loss for taxpayers would be the biggest to crystalise so far from the government’s capital injection plan for banks.

    The agreement with Goldman states that if CIT defaults or goes bankrupt, it “would be required to pay a make-whole amount” that totals $1bn, the people familiar with the matter said.

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