Short scary account: 2 former Goldman Sachs CEOs went to Washington
¨You can fool some of the people all of the time, and all of the people some of the time, but you can not fool all of the people all of the time.¨ – Abraham Lincoln
Two CEO´s from arguably the most important investment bank in the world and their close ties to government and corruption. Also, add to that billions of missing consumer funds and policies which in benefit Wall Street.
New Jersey Corruption
The first of these former CEO´s is Jon Corzine. After leaving Goldman Sachs he became senator of New Jersey. He would later become governor of the state of New Jersey. Funny side story once he became governor he had to appoint someone to replace him as senator. His appointment was Bob Menendez the current senior senator from New Jersey. Senator Menendez was indicted on federal corruption charges on April 1, 2015. His indictment stems from trading political favors with a prominent doctor also currently being investigated for Medicaid fraud.
The other former CEO was Henry Paulson. After Paulson left Goldman Sachs he became the US treasury secretary under President George W. Bush. He was in office from 2006-2009 during the worst financial crisis in recent US history. A not so fun fact, the Goldman Sachs benefit from the AIG bailout was recently estimated at $12.9 billion dollars. Making Goldman Sachs the largest beneficiary of the public funds given to AIG by the government. Remember AIG received $85 billion dollars. Who spear headed this generosity? None other than Henry Paulson.
Henry Paulson did liquidate all of his positions at Goldman Sachs before taking the job as the US treasury secretary. Did he benefit directly from Goldman Sachs after becoming US treasury secretary? We don´t know. We do know he made over $50 million dollars the two years prior to his departure from Goldman Sachs. Did his actions benefit his former employer? Yes, without question his policies brought great financial benefits to his and other financial institutions. I´m sure that after leaving he maintained very close ties to the place he was previously in charge of. We have not come across any evidence of blatant illegal activity.
Henry Paulson was appointed by a republican President but decided to vote democrat in the 2016 presidential elections. He was one of the never Trump people. Like many in the political elite it seems he was in favor of maintaining the status quo in Washington. Let´s not forget that Hillary Clinton made many stops at Goldman Sachs to give big dollar speeches. More than likely pumping up the investment bankers to continue their reckless path of making risky deals on the economy.
Jon Corzine as CEO of Goldman Sachs was instrumental in turning the company into a publicly traded financial institution. For his efforts he received well of $400 million dollars in compensation. His time as senator came and went without any major contributions. We already know about the person he selected to replace him. His good friend and neighbor Bob Menendez.
He lost reelection for governor of New Jersey in 2009. Why was Corzine under investigation in 2010? Corzine was under investigation for the improper use of client funds while we was the CEO of MF Global. MF Global was a multinational futures broker and bonds dealer. Over $1.6 billion dollars disappeared from clients’ accounts. Allegedly Corzine directed his staff to use the funds to cover corporate loses. MF Global would eventually file for bankruptcy. As of today he has not faced any criminal charges, not paid back any of those funds.
New Jersey is one of many states which allow aggressive collection practices from financial institutions. The state provides very little in protection for the consumers. Good luck even if you are in a legitimate financial hardship. Somehow they allow $1.6 billion dollars to vanish without anyone paying any kind of restitution’s.
Rigged system? Yes. High level of political and financial elite getting the benefit of the doubt? Yes. Smells like a dirty rat? Yes. In conclusion if it’s jersey be careful.
I will end this chapter with a last funny yet extremely sad fact. Jon Corzine loses his reelection to a real captain crusader. A true champion of justice, the former New Jersey state attorney general named Chris Christie. On your own time please Google Bridgegate or Fort Lee lane closure scandal. It will start out as a sick joke. But it will end as clear proof of the high levels of corruption which surrounds us on a daily basis.
but the anxieties of this system of things and the deceptive power of riches and the desires for the rest of the things make inroads and choke the word, and it becomes unfruitful. – Mark 4:19