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OpEdNews Op Eds    H2'ed 2/1/13

It's Good to Be a Goldman

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Cross-posted from Truthdig

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Goldman Sachs chairman and chief executive officer Lloyd Blankfein testifies before the Senate Subcommittee on Investigations hearing on Wall Street investment banks and the financial crisis. (AP/Charles Dharapak)

Here's a get-out-of-jail-free card, and while we're at it, take this obscenely huge bonus for having wrecked the economy. As the inspector general for the Troubled Asset Relief Program pointed out in a devastating report this week, "excessive" compensation was approved by the Treasury Department for the executives of the three companies that required the largest taxpayer bailouts to survive. 

In a stinging rebuke of Timothy Geithner's Treasury Department, the report "found that once again, in 2012, Treasury failed to rein in excessive pay." Whopping pay packages of $5 million or more were allowed by the Treasury Department for a quarter of the top executives at AIG, General Motors and Ally Financial, the former financial arm of GM.

But that's nothing compared with the $21 million for last year's work garnered by Lloyd Blankfein, CEO of Goldman Sachs, which is now free of TARP supervision. In addition to his paltry $2 million in salary, Blankfein received a $19 million bonus for his efforts. Not quite the $67.9 million bonus he got in 2007 before the market crash that his firm did so much to engineer, but times are still hard.

Goldman was the training ground for Robert Rubin and Henry Paulson, the two Treasury secretaries who did their best to grease the skids for Wall Street hustlers. It was Rubin under President Bill Clinton who pushed to get the law changed to allow investment banks like Goldman to become commercial banks, and it was Paulson under President George W. Bush who permitted Goldman to take advantage of that loophole and partake in the low interest Fed money available to the commercial banks. Throw in the AIG bailout that allowed the passage of billions of dollars to Goldman, and you get the picture.

What you may not know, and file this in the gallery of the terminally shameless, is the role of James A. Johnson, the longest serving director of Goldman Sachs and chairman of its compensation committee that awarded Blankfein his outrageous bonuses. Before being named a director at Goldman, Johnson served as the CEO of Fannie Mae when the once public-spirited federal housing agency joined forces with Countrywide CEO Angelo Mozilo and other mortgage scam artists in initiating the great housing bubble. 

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Robert Scheer is editor in chief of the progressive Internet site Truthdig. He has built a reputation for strong social and political writing over his 30 years as a journalist. He conducted the famous Playboy magazine interview in which Jimmy (more...)
 

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