The NY Post’s John Crudele looks at a simple question:

So, is this how Goldman Sachs does it?

“It,” of course, is making gobs of money even when nobody else on Wall Street can.

And those profits then go into outrageous bonuses to employees, which cause rancor on Capitol Hill and on Main Street.

You’ve heard the old saying, “it’s not what you know, but who you know.”

Goldman Sachs knows lots of important people. That fact is indisputable, mainly because former Goldman employees are scattered around the country, and the globe, in important, decision-making financial positions.

But I’d like to make an addendum to that old saying, which I’ll explore for you today: Who you know is only important if you can get them on the phone anytime you want. It’s also about the unparalleled access that Goldman Sachs had to Treasury Secretary Hank Paulson.”

I am not sure I buy into the full conspiracy theory, but it sure as hell seems like the CEO of Goldman Sach’s had pretty much unfettered acces to the Treasury Secretary — a former CEO of Goldman Sach . . .

>

See also:
An Inside Look at How Goldman Sachs Lobbies the Senate
Matt Taibbi
True Slant, Sep. 29 2009 – 9:50 am

http://trueslant.com/matttaibbi/2009/09/29/sec-weighs-new-rules-for-lending-of-securities-wsj-com/

Source:
The secret to Goldman Sachs’ good fortune
John Crudele
NY Post, September 29, 2009

http://www.nypost.com/p/news/business/the_secret_to_goldman_sachs_good_WBlKYEyLfH7GP4zT0vNrEP

Category: Bailouts, Politics

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

29 Responses to “The Secret to Goldman’s Success?”

  1. Moss says:

    I don’t think it was a secret plot, it was fully planned and coordinated.
    That it can be done with impunity; that is the conspiracy.

  2. flipspiceland says:

    Nobody else can?

    Then what’s Jamie Dimon doing on the cover of Newsweek, and has his own book out?

    JPMorgan is twice the size of Goldman Sucks, Jamie is the “Last Man Standing”, and he sleeps with The Bamster

    Someone overlooked the $1.3 Trillion under management at JPM.

  3. VennData says:

    … and the $3T at Blackrock.

  4. con·spir·a·cy (kn-spîr-s)
    n. pl. con·spir·a·cies
    1. An agreement to perform together an illegal, wrongful, or subversive act.
    2. A group of conspirators.
    3. Law An agreement between two or more persons to commit a crime or accomplish a legal purpose through illegal action.
    4. A joining or acting together, as if by sinister design: a conspiracy of wind and tide that devastated coastal areas.

    ——————————————————————————–

    [Middle English conspiracie, from Anglo-Norman, probably alteration of Old French conspiration, from Latin cnsprti, cnsprtin-, from cnsprtus, past participle of cnsprre, to conspire; see conspire.]

    http://www.thefreedictionary.com/conspiracy

    the word has been with us a long time, for a reason..

    We should remember what We learned as children: “Stick and Stones may break our Bones, but…”

  5. HEHEHE says:

    Barry how can you be so naive? Look at the phone calls. Blankfein was at the AIG bailout meetings for crying out loud. I’ll go a step further and ask was there a quid pro quo between Paulson and Warren Buffet as Buffet gave his “endorsement” preferred stock deal with Goldman for American Express’ access to TARP funds by having them switched to a Bank Holding Company with no questions asked; Buffet was American Express’ largest shareholder.

  6. jc says:

    Chuzpah cubed. They ran a conspiracy right in front of us and Paulson got carte blanche for his illegal actions – on a never before imagined scale.

  7. jc says:

    There is a Sept 30 deadline on the Fed/Bloomberg appeal right? Talk about kicking the can down the road…

  8. mknowles says:

    GOLDMAN SACKED-USA 2007

  9. ToNYC says:

    This Market Casino would be banned in Vegas in a heartbeat. The Casino is funded by public pension money and depositor’s capital, and the trivially-regulated operators are communicating to Goldman Sachs and JPMChase (read the history = old money) who have spent sufficient sums of talent and cash to insure access and influence to both the choice of cards and transparency of same. The question is not whether perhaps this wasn’t always the case, but rather how it has become so obvious to so many.

  10. call me ahab says:

    i am sure it is just a coincidence-

    conspiracies- puleeeease- i trust my government implicitly- and GS- well- just a model of a company w/ incredible leadership and skill-

    next you’ll be saying that the stress tests were gamed and that the Fed buying USG securities through intermediaries is some kind of covert QE

  11. Marcus Aurelius says:

    The secret to GS’s success is Fascism.
    ______________

    The truth must be spoken with a view to the results it will produce in the sphere of action. As a specimen of a truth from which no results, or the wrong ones, follow, we can cite the widespread view that bad conditions prevail in a number of countries as a result of barbarism. In this view, Fascism is a wave of barbarism which has descended upon some countries with the elemental force of a natural phenomenon. According to this view, Fascism is a new, third power beside (and above) capitalism and socialism; not only the socialist movement but capitalism as well might have survived without the intervention of Fascism. And so on. This is, of course, a Fascist claim; to accede to it is a capitulation to Fascism.

    Fascism is a historic phase of capitalism; in this sense it is something new and at the same time old. In Fascist countries capitalism continues to exist, but only in the form of Fascism; and Fascism can be combated as capitalism alone, as the nakedest, most shameless, most oppressive, and most treacherous form of capitalism. But how can anyone tell the truth about Fascism, unless he is willing to speak out against capitalism, which brings it forth? What will be the practical results of such truth?

    –Bertolt Brecht, The Skill to Manipulate the Truth as a Weapon

  12. Mannwich says:

    Of course that matters. A LOT. It’s almost like the connection is TOO OBVIOUS, so people dismiss it because they think that there’s not way they’d be this obvious about, but why wouldn’t they when they can just do it out in the open with no penalties. This one is a given. This is what happens in Banana Republics. We are one now. Get used to it.

  13. Mannwich says:

    Barry: I realize that you still work in financial services and want to believe that the industry isn’t totally corrupt (and largely criminal), but you have to get real here. The entire system is a sham. You know it. I know it. Heck, my dog knows it.

  14. Winston Munn says:

    It’s a lot easier to make money shooting craps if you bring your own dice to the game.

  15. njtking says:

    Barry,

    New conspiracies occur in everyone’s life on a weekly or daily basis. A conspiracy is a secret shared between a very select number of people. Cheating on a spouse is a conspiracy.

    Goldman Sachs’s privileged access to the treasury in the US, Canada, and England is not a conspiracy. It is out in broad daylight.

    1. Conspiracy is not a dirty word.
    2. You need to check your definition of conspiracy because what Goldman is doing does not resemble a conspiracy as anyone (not intellectually dishonest or ignorant) will acknowledge it.

    No disrespect Barry as your book, blog, and media appearances are a shining light but there are only two reasons for your Goldman defense and both are unsavory.

    Cheers!

    JT

  16. GetALife says:

    How much of the Goldman bashing is caused by J-E-A-L-O-U-S-Y?
    There are rules and if the gov’t is doing their jobs and enforcing the rules, violaters are punished
    Likewise, whistle blowers can turn in the corrupt and even profit from tips
    Knowing some goldman folk over the years, they are generally good people and certainly better people than the average person in the investment/banking world

  17. katall says:

    My goodness.

    If this is “capitalism,” I want nothing of it. To me, this is cronyism, where the well connected get huge profits, and the rest of us get the crumbs (don’t get me wrong, sometimes the crumbs are very tasty).

    This website seems to be channelling Michael Moore.

  18. flipspiceland says:

    @ GetALife

    Better people than the average in the I/B world?

    The Cobra is a better viper than an Asp. They can both kill you.

  19. flipspiceland says:

    Don’t know what’s going on with this BR and his defense of Lord Blankfein, but it stinks.

    Maybe it’s just to create traffic.

    IT certainly makes no sense.

  20. worth says:

    Lords of medieval Europe did not fight for territory so much as they did for the wealth that was owned and produced by that territory.
    Consequently, when defeating knights in battle, they would try to capture, rather than kill, them, and then would hold them for ransom. There were even cases where, due to the sheer number of captives taken, the defeated knights were released, sent back to their towns, and ordered to report back by the end of the year with their own ransoms in hand. And many knights actually did report back and hand over their own ransom as exacted from their own townspeople on pain of torture and/or death.
    However, there were ALSO cases of, upon the return of the defeated knight, a great melee ensuing at the gates, with the peasants refusing to pay their own money as ransom for the knight, and instead choosing to tear the knight down from his horse in his armor and kill him themselves.
    Are we to that point yet, with our present-day lords demanding that we pay their debts out of our own pockets due to their own ineptitude and failure to provide us with whatever it is they are charged with providing for us, i.e. economic security and faith in the realm? Are we going to continue to peacefully hand over the fruits of our own toil, or will we one day stand up as a whole to the knight, tear him in his armor down from his high horse, and do away with him ourselves, chancing whatever may come in his stead?

  21. Mannwich says:

    Vanity Fair article on the govt’s secret dealings with Goldman (I guess they’re not so secret in reality). Why bother hiding this stuff when you can do it right out in the open and get away with it?

    http://www.huffingtonpost.com/2009/09/30/goldman-sachs-in-ivanity_n_304185.html

  22. nemo says:

    “I am not sure I buy into the full conspiracy theory, but it sure as hell seems like the CEO of Goldman Sachs had pretty much unfettered access to the Treasury Secretary — a former CEO of Goldman Sachs . . .”

    “Then what’s Jamie Dimon doing on the cover of Newsweek, and has his own book out?”

    Jamie Dimon is on the Board of Directors of the New York Federal Reserve, a three year term which started January 2007. That’s in addition to his connections in the White House. Dimon has his own out-in-the-open conspiracy, er, unfettered access.

  23. Strawman says:

    In my opinion from my perspective, Which I have come to understand is the only thing that I will truly ever own in the land of legal fictions. If anyone wants to see how far down the rabbit hole it goes,they might want to research this small fact….Here’s the link for the cusip. You will have to copy and paste the link into your browser. Click on mutual fund, then click on fund number. The way that I did it was to enter in my Birth Certificate registration number less the first two digits of the year, then slash, as in / , then the bond number from the back of the BC and my fund came up. I found that they change from week to week! You can try with you SIN number as well as some people have funds come up with that too. Mine does not. Like I said, nothing to do with getting any sort of remedy, but a cool tool to use for showing people with their heads in the sand, or other dark places!!! Enjoy. Strawman PS-check to see who is the major stock holders are,Im sure that it wont come as a surprise.

  24. Paul Jones says:

    There is no “theory”,

    Goldman Sachs owns the government.

    Can we stop self-censoring?

  25. Wes Schott says:

    can i get an AMEN?

  26. Pat G. says:

    In two words: Insider connections. Hell, it’s a revolving door between positions in D.C. and GS.

  27. Strawman says:

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  28. [...] Oct 3 2009 12:10 am by Bob Morris. I am not sure I buy into the full conspiracy theory, but it sure as hell seems like the CEO of Goldman Sachs had pretty much unfettered access [during the start of the financial [...]