Wednesday, November 05, 2008

Paulson's Swindle Revealed

From The Nation --

The swindle of American taxpayers is proceeding more or less in broad
daylight, as the unwitting voters are preoccupied with the national election.
Treasury Secretary Hank Paulson agreed to invest $125 billion in the nine
largest banks, including $10 billion for Goldman Sachs, his old firm. But, if
you look more closely at Paulson's transaction, the taxpayers were taken for a
ride--a very expensive ride. They paid $125 billion for bank stock that a
private investor could purchase for $62.5 billion. That means half of the
public's money was a straight-out gift to Wall Street, for which taxpayers got
nothing in return.

These are dynamite facts that demand immediate action to halt the bailout
deal and correct its giveaway terms. Stop payment on the Treasury checks before
the bankers can cash them. Open an immediate Congressional investigation into
how Paulson and his staff determined such a sweetheart deal for leading players
in the financial sector and for their own former employer. Paulson's bailout
staff is heavily populated with Goldman Sachs veterans and individuals from
other Wall Street firms. Yet we do not know whether these financiers have fully
divested their own Wall Street holdings. Were they perhaps enriching themselves
as they engineered this generous distribution of public wealth to embattled
private banks and their shareholders?

( More... )

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