I am so pi##ed off that our loser president put an accounting fraudster like Paulson in charge of the Treasury. Paulson was CEO of Goldman Sachs, a company that violated shareholder trust and accounting standards by helping Fannie Mae cook its books.
Paulson, you fail my good-American test. Bush, you fail my hiring test – let someone else do the hiring in the White House. We have a weak economics department in Washington, and no economic policy to speak of. So Bush brings in a fraudster from Goldman Sachs. What an utter disappointment. He should have bothered with a background check; this lawsuit (and any other Goldman Sachs problem which are unknown yet to the public) were widely available to the insiders with access.
So to both Bush and Paulson: Go hit the road, Jack! We can do better than you guys.
“GOLDMAN Sachs & Co helped Fannie Mae shift US$107 million of earnings to future periods by designing transactions aimed at deceiving investors, according to an amended lawsuit filed by Ohio Attorney General Jim Petro.
Goldman in December 2001 and March 2002 constructed two mortgage-backed securities for Fannie Mae totaling US$30 billion that deferred income and violated accounting standards, contributing to a US$15.8 billion overstatement of earnings by the biggest mortgage finance company, Petro said in an August 14 filing with a US District Court in Washington, according to Bloomberg News.
“Goldman Sachs directly participated in this fraudulent scheme as both the architect of the improper transactions and as the underwriter for them,” Petro said in the filing. It also helped Fannie Mae “conceal the purpose and nature of the transactions from the public.”
At least Paulson is now busy trying to rein in Fannie. But it is his fault this monster was created. I guess when he was making big bucks helping them structure deals, he didn’t give a damn how much he had to cheat the American taxpayer or shareholders. Anything to help his own pocket and get a deal done. What a loser. And don’t tell me he didn’t know. As CEO he is responsible for the culture which valued making money at all costs, accounting standards be damned.
Next story, on a brighter note:
“Freddie Mac agreed to fund just $2.6 billion in home loans last month, down from $19 billion the previous month. The McLean-based mortgage lender’s portfolio dropped to $711 billion, an 18 percent annual rate of decline. ”
– San Antonio bizjournals
.
