...Only this one was working for us (supposedly!) in the Bush administration.
According to Bloomberg News, former Treasury Secretary Hank Paulson, who was at the helm when the financial crisis hit in 2008, leaked inside information regarding the government takeover of mortgage giants Fannie Mae and Freddie Mac to several hedge fund traders, including former colleagues of his at Goldman Sachs... Think Progress
So he was sitting in Treasury and sending tips out to "Wall Street in general, and to Goldman types in particular: exactly the kind of behavior that ‘Government Sachs’ conspiracy theorists have been speculating about for years.”
Funny about how people are labeled "conspiracy theorists" when all they're doing is providing info the establishment just doesn't want known... right?
William Black, who emerged from the savings-and-loan crisis a national hero and who comes down hard on the causes of the current financial/economic situation, comments on the news about Paulson.
William Black, associate professor of economics and law at the University of Missouri-Kansas City, can’t understand why Paulson felt impelled to share the Treasury Department’s plan with the fund managers.
“You just never ever do that as a government regulator -- transmit nonpublic market information to market participants,” says Black, who’s a former general counsel at the Federal Home Loan Bank of San Francisco. “There were no legitimate reasons for those disclosures.”
Janet Tavakoli, founder of Chicago-based financial consulting firm Tavakoli Structured Finance Inc., says the meeting fits a pattern.
“What is this but crony capitalism?” she asks. “Most people have had their fill of it.” ...Bloomberg
