Paulson and Blankfein's $700 Billion Phone Calls
Perhaps this would be best filed under "duh"?
Former U.S. Treasury Secretary Henry Paulson had frequent conversations with Goldman Sachs Group Inc's chief executive during last fall's financial crisis, raising questions about his ties to his former firm, according to a New York Times report.
Paulson, a former CEO of Goldman Sachs, spoke much more often with Goldman CEO Lloyd Blankfein than with other executives, the report said, according to entries in Paulson's calendars that the paper acquired through a Freedom of Information Act request.
According to the report, Paulson said he asked for an ethics waiver for his interactions with Goldman "when it became clear that we had some very significant issues with Goldman Sachs."
On September 16, 2008, the U.S. government agreed to loan $85 billion to insurance giant American International Group. Goldman was a major beneficiary of the government's rescue of AIG.
Copies of two waivers Paulson received, from the White House counsel's office and the Treasury Department, show they were issued on the afternoon of September 17, 2008, according to the report.
The newspaper said Paulson's calendars show he received a call from Blankfein the morning of September 16. The next day, Paulson called Blankfein five times, including two calls that were made before the waivers were granted, according to the report.
I sincerely hope I'm not the only one beginning to question the bailout timeline; if the $500 billion money market run occurred on September 15th (as is sometimes reported) as opposed to September 18th 2008, surely someone alerted Lord Blankfein before his little convos with Creepy Pinky Paulson.
Now if only we knew what exactly those two cooked up in their conversations? Oh wait, we already know! We're living it every single day, duh!
Should either Blankfein or Paulson be interested, the AICPA has a multitude of resources available on professional responsibility and ethics. I understand neither of them are in accounting but even my 6 year old understands the concept of "doing the right thing" though it seems the Boys from Broad could use a little refresher.
Just a friendly suggestion.
The NYT article from which this comes is a do-not-miss.