Paulson, the former CEO of Goldman Sachs whose wealth is estimated at $700 million, argued that including any such provision would result in banks refusing to participate in the program.
As the New York Times reported Monday, “Mr. Paulson said that he was concerned that imposing limits on the compensation of executives could discourage companies from participating in the program.
It figures.
And just who is Henry Paulson? The right crony at the right time, it seems:
Prior to being selected as treasury secretary, Paulson was a major individual campaign contributor to Republican candidates, giving over $336,000 of his own money between 1998 and 2006.
Since taking office, Paulson has overseen the destruction of three of Goldman Sachs’ rivals. In March, Paulson helped arrange the fire sale of Bear Stearns to JPMorgan Chase. Then, a little more than a week ago, he allowed Lehman Brothers to collapse, while simultaneously organizing the absorption of Merrill Lynch by Bank of America. This left only Goldman Sachs and Morgan Stanley as major investment banks, both of which were converted on Sunday into bank holding companies, a move that effectively ended the existence of the investment bank as a distinct economic form.
In other words, this is like having Al Capone oversee the U.S. Treasury.
Banks are racing to get a share of the bailout.
If there was ever a doubt Obama is nothing but a Republican, this should do the trick.
No wonder Wall Street loves him:
The decisions being taken this week in Washington on the Wall Street bailout have rendered the November election virtually irrelevant. The Democrats and Obama, no less than the Republicans and McCain, have lined up behind what amounts to a vast new transfer of wealth from American working people, the vast majority of the population, to a tiny, obscenely wealthy layer at the top.
I don't expect Congress to do a damned thing that will benefit people despite the skepticism on both sides of the aisle.
No comments:
Post a Comment