Paulson still too powerful under "compromise" bill

The crazy ass fox is still guarding the hen house under the Democrat-improved and soon to be bi partisan approved bank bailout bill. Treasury Secretary Henry "Hank" Paulson is already earning his golden parachute from from Goldman Sachs.

Treasury Gets Broad Power in Bailout Bill to Hire Contractors By Rebecca Christie Sept. 28 (Bloomberg) -- Treasury Secretary Henry Paulson will have broad authority to hire financial managers quickly to help manage a $700 billion asset-purchase plan, according to the draft legislation under consideration.

Bush's original 3 page proposal gave Paulson unlimited authority to spend the $700 Billion. The current bill still gives him plenty of wiggle room to have a free hand to enrich his buddies.

If the plan is enacted, the Treasury likely will need a lot of Wall Street expertise to manage the assets it acquires, said Tim Ryan, head of the Securities Industry and Financial Markets Association. Ryan also is former director of the Office of Thrift Supervision, which oversaw the Resolution Trust Corp., the agency that liquidated failed thrifts after the savings-and-loan crisis of the 1980s. ``What we learned through the RTC process is, if we're going to throw this type of assignment at the government -- any government, state, federal, U.S., anywhere -- they're not staffed to deal with this issue,'' Ryan said in an interview last week. Treasury's potential hiring of contractors to run the program will help because ``they'll just do a better job and they'll get it done faster, and ultimately it'll be cheaper,'' Ryan said.

Color me skeptical. We're spending $10-12 Billion a month in Iraq because we have outsourced the Occupation. I see another boondoggle here.

Paulson has already recruited from Wall Street to help manage the current financial crisis, the worst since the Great Depression. He hired Morgan Stanley on a $95,000 contract awarded under emergency procedures to help assess options for Fannie Mae and Freddie Mac, the mortgage companies that ultimately ended up in government conservatorship. Goldman Sachs Paulson also last week hired former Goldman Sachs Group Inc. colleague Edward C. Forst, now executive vice president at Harvard University, on a $5,000 contract to help with the plan.

I know, I know... It's just chicken feed. The golden egg will be stolen with the help of these Wall Street pirates. Aaargh!

Goldman Sachs earns big

on investment in Henry Paulson

Remember this bit from Treasury Secretary Henry Paulson's bio from my rant on Sunday?

• 1999 Paulson becomes CEO of Goldman Sachs
• 2005 Goldman Sachs pays Paulson $37 million for the year
• 2006 George W. Bush names Paulson to head the US Treasury

Well, it seems the struggling executives at Goldman Sachs made a wise investment 3 years ago.

NEW YORK (CNNMoney.com) -- In its first big move to raise capital, Goldman Sachs Group announced Tuesday that it will receive a $5 billion infusion from Warren Buffett's Berkshire Hathaway, an investment that could also raise confidence in the venerable Wall Street firm. [More...]

Without the intervention of its former CEO, Goldman Sachs was destined to go the way of previous fallen titans of Wall Street. As it is, they stand to take advantage of the current crisis.

Wikipedia:	On September 21st, 2008, Goldman Sachs received Federal Reserve approval to transition from an investment bank to a bank holding company. [10] On 22nd September 2008, The last two major investment banks in the United States, Morgan Stanley and Goldman Sachs, will become traditional bank holding companies, bringing an end to the era of investment banking on Wall Street. [11] The Federal Reserve's approval of their bid to become banks ends the ascendancy of the securities firms, 75 years after Congress separated them from deposit-taking lenders, and caps weeks of chaos that sent Lehman Brothers Holdings Inc. into bankruptcy and led to the rushed sale of Merrill Lynch & Co. to Bank of America Corp. [12]