Friday, March 20, 2009



To rap up a week of shadow bailout and bonus lootng
disclosures at AIG, Barney Frank's AIG bonus inquisition,
Blog posts and radio interviews with Elliot Spitzer,
Congressional outrage and special bonus taxes, pussycat
public protests and a Presidential wrap up on
the Jay Leno Show, Friday morning Goldman
Sachs will host a special conference call
to: "answer questions from journalists, and clarify certain misperceptions in the press regarding Goldman Sachs' trading relationship with American International Group."

Make no mistake, Goldman has its best
road show impresarios choreographing tomorrow's
closing act. They will spin and spin about
their hedging positions against AIG risk,
how they were strong armed into accepting
bailout money, how there were no conflicts
last September when good citizen Blankfein urged the Fed
to bail AIG. They will be innovating the truth in the
mother of all roadshows and
will be counting the gullibility
of the American public.

I hope the media have the spine to expose the uncomfortable
truth at this road show event. As Daniel
Gross correctly points out on Slate, the inconvenient truth
is that Goldman has become one of New York's
biggest welfare queens.

Here is what stinks at Goldman Sachs, and no amount of
factual innovation is going to stem the putrid odour.
It is one thing for Goldman to be yet another bailout floozy.
But Goldman has not admitted its showcase complicity in
creating the mother of all financial meltdowns.

When the dolts at AIG designed the doomsday machine that is sucking Uncle
Sam's wallet dry, you better believe Goldman bankers were there.
Someone should ask what package of fee generating services was provided
by Goldman Sachs to AIG leading up to the crisis. How
much of the subprime garbage at AIG originated at Goldman?
We all know that Goldman's derivative traders picked AIG's

That is fine a trade is a trade as they say.

What is not fine and stinks to high heavens, is the
brazen conflicts that surface when you consider
Hank Paulsen's past at Goldman, Blankfein's
exclusive involvement in the discussions leading to the bailout coupled
with Goldman's prominent role in creating Franken/A.I.G.

Mr. Blankfein presided over the debacle that brought his storied investment
bank to its knees then he weaseled his way through the shadow bailout at AIG.
This man who should by any measure lose his job, has been stomping the media
pavement telling the world how the Goldman model is not broken.

Nothing at Goldman needs to be changed says he.

It is time for the media to turn the spotlight on Goldman Sachs.


From Kati on Slate: "William Banzai, thanks for the music. Singing and laughter are the only things protecting us from the hell created by those greedy vultures...."

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