How the SEC and Congress Can Bring Down Goldman Sachs and Expose the Financial Coup

[kpete]

How the SEC and Congress Can Bring Down Goldman Sachs and Expose the Financial Coup
Posted on Wednesday, April 28th, 2010 at 9:19 am


By David DeGraw, AmpedStatus Report

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Although the SEC and Congress are focusing on Goldman Sachs and John Paulson shorting these CDOs they knew would fail, these CDOs are at the heart of the case I presented in my Financial Coup report. Not only did they create CDOs they knew would fail and bet against them, but they also, more importantly, insured these CDOs through AIG. This is the key point and exactly what led to US taxpayers being forced to bail AIG out at the extraordinary expense of $182 billion.

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Hank Paulson’s Role

Here’s how a report on Zero Hedge put it: “They (Goldman) fabricated synthetic CDOs, such as Abacus 2007 AC-1. These toxic assets, invented out of thin air, made the meltdown worse than it otherwise would have been. How much worse? Consider the numbers: According to the New York Fed, about $1.275 trillion in subprime mortgage-backed bonds were issued between 2004 and 2006.”
http://www.zerohedge.com/article/guest-post-goldmans-cdos-had-nothing-do-real-estate-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops

Now, the quote above references some of the CDO time bombs that were created in the market that eventually blew up. Also, notice when the bulk of these CDOs were created - during Hank Paulson’s reign as CEO of Goldman. As I wrote in early February, “Paulson knew these CDOs would go bust because they were based on fraudulent activities…. So Paulson and Goldman Sachs covered their risk by insuring them through AIG, making it pivotal to save AIG….”

So after Hank Paulson and Goldman Sachs created a ticking time bomb in CDOs — Paulson personally made $700 million on these shady activities — they then insured them through AIG. Paulson then moved to the US Treasury where he was calling the shots once his time bomb went off. And once it went off, Paulson quickly made the decision that AIG was “too big to fail” and must be saved at all costs.

As bad as that sounds, this is just part of the story. Enter Edward Liddy, as I wrote:

“Another egregious unilateral move by Paulson was installing Edward Liddy, one of his former board members at Goldman Sachs, as CEO of AIG. Liddy was the Chairman of Goldman’s Audit Committee, making him the most knowledgeable person regarding Goldman’s collateralized debt obligations (CDOs)… making it pivotal to… have one of Paulson’s most trusted allies run the company. With Liddy in place, billions of taxpayer dollars were secretly funneled by the Geithner-led NY Federal Reserve through AIG to Goldman Sachs and several other Wall Street elite counterparties.”

Without the AIG bailout, Goldman Sachs would have collapsed as a result of its own scam. So Hank Paulson, not John Paulson, should be the ultimate target of this investigation.



much more:
http://ampedstatus.com/how-the-sec-and-congress-can-bring-down-goldman-sachs-and-expose-the-financial-coup

[Tansy_Gold]

1. Just because they CAN bring 'em down doesn't mean they WILL.

It's the opposite of that "I did it, whatever it was, because I could," you know, like Clinton and what's-her-name in the blue dress.

Now it's "We CAN, but we WON'T, and you can't make us."





Tansy Gold