Monday, September 22, 2008

Cronism Key Pillar of Bailout Plan

Getty photographer Chip Somodevilla and NYT

So, I already expressed my SHOCK(not) at the idea that the estimated figure that Paulson was asking for was actually and underestimation and the predicted costs would be much higher.

So imagine my surprise to find out that Goldman Sachs, where Paulson was formerly CEO, is having an undue influence and an over emphasized benefit in their good buddy Hank's bailout bonanza?!

But the conflicts are also visible. Paulson has surrounded himself with former Goldman executives as he tries to navigate the domino-like collapse of several parts of the global financial market. And others have gone off to lead companies that could be among those that receive a bailout.

In late July, Paulson tapped Ken Wilson, one of Goldman’s most senior executives, to join him as an adviser on what to about problems in the U.S. and global banking sector. Paulson’s former assistant secretary, Robert Steel, left in July to become head of Wachovia, the Charlotte-based bank that has hundreds of millions of troubled mortgage loans on its books. By Kevin G. Hall | McClatchy Newspapers
Oh, and they will get more money than anyone else too-- also a shocker.
Goldman Sachs Group Inc. and Morgan Stanley may be among the biggest beneficiaries of the $700 billion U.S. plan to buy assets from financial companies while many banks see limited aid, according to Bank of America Corp.- Bloomberg

Once again, it is clear that we got a "Brownie" at the helm in a crisis. I have an idea, let's create an Arabian horse show circuit where these guys can all go and work together. They can tour the world with their horses and leave the rest of us alone.

More on all things Hank and Goldman at Think Progress.
And thanks to Bagnews for pointing out the great ghost like fractured photo of Paulson. Makes me uneasy just looking at it.