During the demand for a bailout Former Secretary of the Treasury Hank Paulson was in "constant telephone contact with Goldman chief Banfein" When the hearings for the "bailout, rescue plan, recovery" plan were taking place I kept thinking Christ Paulson is the inside heist guy with a gun pointed at the heads of our Reps saying "give me the $ or I will pull the trigger"
McClatchey has been investigating Goldman Sachs for five months They have been digging into how (can you say Hank Paulson) Goldman Sachs not only stayed afloat but how they got out before the fall and have profited big time from the bailout
How Goldman secretly bet on the U.S. housing crash
" WASHINGTON — In 2006 and 2007, Goldman Sachs Group peddled more than $40 billion in securities backed by at least 200,000 risky home mortgages, but never told the buyers it was secretly betting that a sharp drop in U.S. housing prices would send the value of those securities plummeting.
Goldman’s sales and its clandestine wagers, completed at the brink of the housing market meltdown, enabled the nation’s premier investment bank to pass most of its potential losses to others before a flood of mortgage defaults staggered the U.S. and global economies.
Only later did investors discover that what Goldman had promoted as triple-A rated investments were closer to junk.
Now, pension funds, insurance companies, labor unions and foreign financial institutions that bought those dicey mortgage securities are facing large losses, and a five-month McClatchy investigation has found that Goldman’s failure to disclose that it made secret, exotic bets on an imminent housing crash may have violated securities laws."