Comments on: How Paulson gave Goldman the Lehman heads-up http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: econobiker http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/comment-page-1/#comment-8313 Mon, 02 Nov 2009 23:14:02 +0000 http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/#comment-8313 “Insanity: doing the same thing over and over again and expecting different results.” Albert Einstein

Need more be said in reference to this situation?

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By: Panagiotis Atmatzidis http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/comment-page-1/#comment-8255 Fri, 23 Oct 2009 23:25:19 +0000 http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/#comment-8255 This entire picture is disgusting. Really Paulson do not have a clue because the markets are too complex or simply, he has huge stakes at GS? Is he the only one in the USA gov that is directly or indirectly alleged to GS?

What are you going to drop next, that USA went to IRAQ because of the fear of mass destruction weapons?

Oh, My God. It’s hilarious when people try turn the simple crystal clear truth into complex scenarios that absolve everyone from their responsibilities because of “complex” scenarios.

This is just the re-assurance of what everyone knew. Goldman Sachs is the key-problem of the financial system because it manage to exploit every weakness in the best way. The current lesson is: If the financial system collapses we all lose money, otherwise they gain huge amounts of (non existent) money and we still.. starve.

Paulson should be driven in prison and GS as AIG should had left alone to die and nationalize only the healthy parts.

How can we expect from those who created the basis for this financial collapse to adjust it? Obama lost a big chance of rebuilding the system, instead he saved the world biggest mob.

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By: Steve http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/comment-page-1/#comment-8218 Thu, 22 Oct 2009 18:01:49 +0000 http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/#comment-8218 Care to compare In Fed We Trust to To Big to Fail?

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By: grape_ape http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/comment-page-1/#comment-8191 Thu, 22 Oct 2009 12:17:25 +0000 http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/#comment-8191 Only problem is Hank Paulson thinks Goldman Sachs is the financial heart of the world.

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By: scrilla_gorilla http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/comment-page-1/#comment-8182 Thu, 22 Oct 2009 04:39:07 +0000 http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/#comment-8182 Put yourself in Hank Paulson’s situation. The whole financial ecosystem is collapsing around you. It’s happening extremely fast; days and hours, not weeks and months. (It’s like a dinosaur walking around 70 million years ago, then BAM, there’s a flash in the distance, the sky goes dark, and within days, all your food starts dying.) Suddenly, the mountains on which the world stands have been turned to sand, and the tide is coming in to wash the sand away. What do you do?

Nothing. You can do nothing. Why? Because YOU DON’T KNOW WHAT’S GOING ON! Events are unfolding rapidly, capital markets are extremely complex, and all the major players are hiding the truth in order to maintain a thread of confidence in their firms and prolong their survival. All you have is conflicting, fleeting, unreliable rumors.

The #1 thing you need is information. WHAT IS GOING ON? HOW IS THIS HAPPENING? Now if you’re Hank Paulson, who do you call for information? You don’t have many good options, as information is being actively concealed on all fronts, and even those in the eye of the storm have only a narrow view. You need a source that can see the big picture, with tentacles in the farthest reaches and deepest depths of the markets. Just as importantly, you need a source you can trust to (1) not feed you bullsh!t, and (2) not go out and repeat or leak what you say.

If you are Hank Paulson, there is only one option: Lloyd Blankfein, your former colleague, trusted friend, and CEO of Goldman Sachs. Who has a clearer picture of the markets than he who resides at the core of the Squid? Who has smarter, more perceptive subordinates collecting information? Who observes every trade, knows every deviation and regression, than the masters of HFT and the kings of the biggest dark pool on earth? And who can be more trusted, on the brink of collapse, when approached by a desperate man? Lloyd Blankfein, CEO of Goldman Sachs.

I wasn’t in the room, but I suspect that we should be commending Hank Paulson, not sniping at him. Standing on the edge of that chasm, Paulson put “optics” aside. He decided to let the politics sort themselves out when it no longer mattered. He knew it would make him an easy target at some later date (Oct 21, 2009, to be exact), but his responsibility was too great to act on such narrow considerations. He needed information, he needed it now, and there was probably not a single person on Earth better placed to gather and provide that information than Lloyd Blankfein. So he did what needed to be done.

Did Goldman benefit? Probably. Did Hank Paulson make bad decisions? Almost certainly. But do I think that Paulson put the bottom-line of Goldman Sachs above his duty as Treasury Secretary? That he decided bigger bonuses for his former employees were more important than saving the financial heart of the world? No, I do not.

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By: Sam http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/comment-page-1/#comment-8171 Wed, 21 Oct 2009 23:54:58 +0000 http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/#comment-8171 I remember reading in the VF article along the lines of “We must save these guys somehow” from Paulson reg. GS.

It is pretty clear that there were long lengths of time where the duty to the taxpayer was the last thing on Paulson’s mind during that weekend. He was in the “Save GS at all costs” mode throughout.

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By: Dollared http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/comment-page-1/#comment-8170 Wed, 21 Oct 2009 23:48:15 +0000 http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/#comment-8170 I can hear Paulson now: “But the business was so complex that only another IBank could have understood their books. I had to call in GS and I knew, based on their/our long historical relationship with Treasury that they would never have abused that information.”

But isn’t this exactly when everyone else brings in McKinsey or Bain? Isn’t the whole point to have YOUR OWN experts?

That’s why it’s either corruption of incompetence. There are only two choices.

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By: Jon H http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/comment-page-1/#comment-8162 Wed, 21 Oct 2009 21:16:52 +0000 http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/#comment-8162 ” Some of the most spectacular professional failures in recent years have come from just that, e.g. Summers as Harvard Pres. and Wolfowitz as World Bank Pres.”

Yeah, Wolfowitz was *so* brilliant at the Pentagon, right?

His failure at the World Bank was just more of the same from that tool.

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By: right http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/comment-page-1/#comment-8160 Wed, 21 Oct 2009 21:12:47 +0000 http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/#comment-8160 I don’t have the book yet, so I can’t check the context, but how is this different from the Vanity Fair excerpt where Paulson and Geithner keep calling up every bank to try to get them to merge with Morgan Stanley? Isn’t this just the same thing a few weeks earlier?

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By: I remember http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/comment-page-1/#comment-8149 Wed, 21 Oct 2009 19:27:15 +0000 http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/#comment-8149 Anybody else remember this:

http://www.calculatedriskblog.com/2008/0 7/wsj-paulson-drove-gse-rescue-plan.html

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