Henry Paulson is buying $10 billion of Goldman Sachs preferred stock with public money.

[Eric J in MN]

Henry Paulson was the CEO of Goldman Sachs when he was appointed Treasury Secretary in 2006.

Dick Cheney was CEO of Halliburton when he became Vice President in 2001. Cheney got Halliburton no-bid contracts for the Iraq War.

http://online.wsj.com/article/SB122390023840728367.html

[Fran Kubelik]

1. oh

:puke:

[brentspeak]

2. Can someone explain how buying billions of $$ of GS will unfreeze credit markets?

[Lucky Luciano]

6. Based on the plan, it is quite clear that GS

was a natural choice for one of the nine banks which received an investment. With the investment, GS's counterparties will be able to trust them. GS is extremely dependent on short term funding and is a brilliantly run firm as long as they always have access to short term funding. However, the BK of Lehman killed confidence and nobody wanted to lend to anyone no matter how short the term...well that will put good companies out of busines real fucking quick.

Look into it more if you wish...but I do not feel like typing much more (Exhausted). If it is any consolation, then the senior execs at GS will have their compensation restricted while the government is invested.

[Eric J in MN]

10. Goldman Sachs is "brilliantly run," and yet...

...the private sector is unable to see that. But once they get $10 billion in public money, the private sector will see that?

[gravity]

7. They are giving GS equity

The government buys a $10 billion equity stake, and GS has $10 billion in cash from the government. The downside is that it will dilute current shareholders.

[Whoa_Nelly]

3. And this benefits OUR money how?

and where will this preferred stock go? To banks? To CEO pockets? To Paulson himself?

[Lucky Luciano]

8. no - is is property of the US Government (ie the taxpayer)

[sandnsea]

4. If putting social security money in stocks was a bad idea

why in the hell does anybody want to do it with tax dollars.

[formercia]

19. If the boys can't steal the Social Security Trust Fund

then Hank will make sure they get our money anyway. The net result is the same.

[gravity]

5. As a Goldman Sachs shareholder, I am not too happy

This dilutes the shares of the company, so it isn't much of a win.

It is a good deal for the government, depending on the terms they can get for the preferred shares.

[Lucky Luciano]

9. bingo...a necessary evil for Goldie because the alternative would

have crushed them.

[leftofthedial]

11. repukes are the kings (and queens) of political corruption

and cronyism.

IT REEKS.

WE NEED A BIG, HARSH DOSE OF JUSTICE IN THIS COUNTRY.

[peacetalksforall]

12. So when is GS going to have their California style spa party a la AIG? Do they get to spend more

than AIG?

I have yet to hear any guarantee that we own that investment. Where are the papers? Or did George explain it all today and provide document numbers and titles.

[Eric J in MN]

13. The stock purchase hasn't taken place yet, but is expected soon. NT

NT

[Neshanic]

14. Money? Bernake says money is like Dorritos, don't worry we'll make more.

[specimenfred1984]

15. That way healthcare remains unaffordable, isn't that great?

Plenty of money to prop up criminal "investment" banks and to torture innocents in an illegal war but no money for any of that "Socialist" health care, not in this "free" market economy where the government buys failing elitist companies and let's millions suffer!

Hope that clears it up.

[David Zephyr]

16. Paulson plays favorites: He helps Goldman-Sachs and let's their competitor, Lehamn collapse.

And he's letting Morgan Stanley hang by the vine.

The cronyism is criminal and blatant.

[Karenina]

18. And OBVIOUS!

;-)

[2Design]

17. must be the start of moving ss over to stocks n/t