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Hank Paulson Trusts Neither Wall Street Nor Washington

Posted by Larry Doyle on February 6, 2014 8:46 AM |

Do you ever wonder if those who ‘find religion’ late in life so to speak are trying to conveniently cleanse their souls before making their way to the pearly gates?

I think in the case of public officials, it is fair to ask if the ‘cleansing process’ is done for purposes of resurrecting an image or if the individual is truly engaging in a meaningful transformation.

I ask these questions this morning as I see a headline cross the news wire that none other than former Wall Street titan and Washington heavyweight Henry Paulson now trusts neither Wall Street nor Washington.

Is that right? Well ol’ Hank would seem to be having a ‘come to Jesus’ moment here.

This revelation of Hank’s newly found lack of trust in his longstanding compadres on Wall Street and in Washington is the title of an article just released in The Atlantic: Hank Paulson Mastered Wall Street and Washington, and Now He Trusts Neither. (I thank the reader who provided the link)

I would imagine Hank is well aware of the general lack of trust held by the American public toward the two greatest bases of power in our nation and would like to join the crowd. What do you think the chances are that in the midst of this article I will find details regarding ol’ Hank’s influence, involvement, or knowledge in the following situations?

No chance.

In what might only be defined as putting the cherry on the top of the puff, the reporter did not bring Hank anywhere near any of the following less than trustworthy situations:

1. relaxing the net capital standards on Wall Street that allowed Goldman Sachs and all the other investment banks to triple their leverage. That development was certainly one of the key factors in bringing down our markets and global economy.

2. his pressure and influence from early on to allow Wall Street’s self-regulatory entities at the NASD and the regulatory arm of the NYSE to merge and form FINRA.

3. the revolving door that looks all too similar to an EZ-pass between his former firm Goldman Sachs and an array of offices in and around Washington DC.

4. Goldman Sachs being paid 100 cents on the dollar by US Treasury for the firm’s exposure to AIG.

5. former Goldman colleague Stephen Friedman’s blatant insider trading violation when as chairman of the New York Fed he purchased not an insignificant amount of Goldman stock after having learned of some very sensitive inside information.

If Hank is looking for a little absolution in an attempt to burnish his image, then he has to come totally clean. Cleanliness may be next to godliness but truth is also next to transparency.

Navigate accordingly.

Larry Doyle

Please order a copy of my book, In Bed with Wall Street: The Conspiracy Crippling Our Global Economy.

For those reading this via a syndicated outlet or receiving it via e-mail or another delivery, please visit the blog to comment on this piece of ‘sense on cents.’

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The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

  • Peter Scannell

    Now he wants to confess to what he and we have known all along. What a crock!

  • Peter Scannell

    Martoma convicted – what a knucklehead!

  • But Stevie-boy was not in on it, right?

  • Peter Scannell

    Could Martoma’s legal representation be in the pocket of Cohen – Martoma’s going to trial would provide just enough time to pass to get Cohen out of the laws reach. Again, what a knucklehead!

  • At the bare minimum a massive ego run amuck and more likely an outright sociopath.

  • Mike

    Wow, I remember that 100 cents on the dollar deal. Has there been a more blatant slap in the face to tax payers?

  • KD

    LD,
    Do you think you will also read about the tax benefit afforded the former Goldman executives when they left Goldman and took a job in D.C.? The benefit being able to sell (required to sell) their stock without paying any capital gains tax.

    http://www.marketwatch.com/story/paulson-files-to-sell-500-mln-in-goldman-stock

    “Interestingly, under U.S. government ethics rules, while Paulson is required to sell the shares, he is also exempt from paying taxes on any capital gains on the sale if he obtains a certificate of divestiture. The rule granting the exemption is designed to make sure prospective government employees who own a lot of stock are not dissuaded from joining the government.

    Earlier this week, the Economist magazine estimated the rule eliminate a tax liability of up to about $200 million for Paulson.”

    But I’m sure he (along with Jon Corzine and others) were entering public service for the good of the country…..Yeah Right!

  • Russ

    Larry,

    I loved your book, particularly the last chapter in which you outline fixes for the problems. Unfortunately, I think we have not a shot in hell of getting any of those fixes through.

    The people who would have to enact the legislation are the same people who would no longer profit from the old system. It’s going to take a collapse of the American system to POSSIBLY bring that kind of reform around.

    BTW, I think that the Supreme Court is every bit as corrupt as the zoning department officials in New Orleans (the smallest of the government entities).

  • joe anon 1

    believe not a word from: greenspan, rubin, bernanke, geithner, summers, paulson.
    take every penney they have, staple their lips shut.
    then public hangings on the dc mall.
    i feel a bit better.
    and
    add yellen and #2 from israel.






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