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Greece Paid Goldman $300 Million To Help It Hide Its Ballooning Debts
Clusterstock ^ | 2/14/10 | Henry Blodget

Posted on 02/14/2010 7:18:12 PM PST by DontTreadOnMe2009

In 2001, just after Greece was admitted to Europe’s monetary union, Goldman helped the government quietly borrow billions, people familiar with the transaction said. That deal, hidden from public view because it was treated as a currency trade rather than a loan, helped Athens to meet Europe’s deficit rules while continuing to spend beyond its means...

Instruments developed by Goldman Sachs, JPMorgan Chase and a wide range of other banks enabled politicians to mask additional borrowing in Greece, Italy and possibly elsewhere.

In dozens of deals across the Continent, banks provided cash upfront in return for government payments in the future, with those liabilities then left off the books. Greece, for example, traded away the rights to airport fees and lottery proceeds in years to come.

[Greece paid Goldman] about $300 million in fees for arranging the 2001 transaction, according to several bankers familiar with the deal.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Culture/Society; Foreign Affairs; Government
KEYWORDS: eu; goldman; goldmansachs; greece; gs; wallstreet
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Greece paid Goldman Sachs $300 million in fees for arranging the 2001 transaction, according to several bankers familiar with the deal.
1 posted on 02/14/2010 7:18:13 PM PST by DontTreadOnMe2009
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To: DontTreadOnMe2009

If the headline is true, heads should roll and be put on pikes.


2 posted on 02/14/2010 7:19:34 PM PST by GeronL (Dignity is earned from yourself. Respect is earned from others.)
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To: DontTreadOnMe2009

I almost feel sorry for convicted bank robbers when I look at how Goldman profits from crime.


3 posted on 02/14/2010 7:20:25 PM PST by stephenjohnbanker (Support our troops, and vote out the RINOS)
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To: DontTreadOnMe2009

Surely this monkey business can’t be exclusive to Greece.


4 posted on 02/14/2010 7:22:19 PM PST by HiTech RedNeck (I am in America but not of America (per bible: am in the world but not of it))
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To: DontTreadOnMe2009

Nothing is going to happen. GS has Geithner on speed dial.


5 posted on 02/14/2010 7:23:50 PM PST by Juan Medén
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To: DontTreadOnMe2009

Well, isn’t this getting interesting. We the people of Government Sachs were left in the dark on this? SHEESH!

Who will protect us from our protectors?


6 posted on 02/14/2010 7:26:27 PM PST by PGalt
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To: DontTreadOnMe2009

Insured by AIG?


7 posted on 02/14/2010 7:26:33 PM PST by ricks_place
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To: DontTreadOnMe2009

Goldman is rotten to the core. And they own the Obama administration.


8 posted on 02/14/2010 7:26:54 PM PST by ClearCase_guy (I was born in America, but now I live in Declinistan.)
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To: DontTreadOnMe2009

Not one single dollar to Goldman Sachs from taxpayer funds. No, never again.


9 posted on 02/14/2010 7:27:50 PM PST by Steelfish
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To: DontTreadOnMe2009

Goldman Sachs et al


Q: What do we do with robbers and cheats like these mafioso?

A: We appoint them to government posts.


10 posted on 02/14/2010 7:29:56 PM PST by eleni121 (For Jesus did not give us a timid spirit , but a spirit of power, of love and of self-discipline)
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To: DontTreadOnMe2009

Why would anybody do business with GS when they will stab you right in the back.


11 posted on 02/14/2010 7:30:15 PM PST by C19fan
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To: holdonnow; HonestConservative; kristinn

ping


12 posted on 02/14/2010 7:31:53 PM PST by AliVeritas (Stolen from the best site ever: http://directorblue.blogspot.com/)
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To: DontTreadOnMe2009

Nothing wrong here. Goldman is in business to make money. It didn’t violate any laws as far as I can see. Unethical? maybe, but so what? As long as they make money for their stockholders. As for the Greek government, that’s for the Greeks to deal with..


13 posted on 02/14/2010 7:34:10 PM PST by Cacique (quos Deus vult perdere, prius dementat ( Islamia Delenda Est ))
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To: DontTreadOnMe2009
Greece, for example, traded away the rights to airport fees and lottery proceeds in years to come.

I bet the State of California has done stuff like this. "When cash flow managers get desperate."


14 posted on 02/14/2010 7:37:27 PM PST by Nick Danger (Free cheese is found only in mousetraps)
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To: Cacique
Nothing wrong here.

I agree. New York banks can't play World Money Cop. If Greece wants to pull a little wool over the EU's eyes, that's not our problem. Somebody would loan them the money; might as well be our guys getting the $300 million. Besides, this author writes it up as if The Crime of the Century happened. Countries take out loans every day. If one of 'em hides it on their books, that's on them.


15 posted on 02/14/2010 7:41:25 PM PST by Nick Danger (Free cheese is found only in mousetraps)
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To: HiTech RedNeck

You are absolutely right!


16 posted on 02/14/2010 7:43:09 PM PST by rawhide
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To: GeronL

Goldman are criminals.


17 posted on 02/14/2010 7:44:39 PM PST by Frantzie (TV - sending Americans towards Islamic serfdom - Cancel TV service NOW)
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To: stephenjohnbanker
I almost feel sorry for convicted bank robbers when I look at how Goldman profits from crime.

In Florida last week a bank robber in his 70's was found robbing banks of a few hundred each to pay his mortgage... guess he didn't want to take too much from any one bank.

18 posted on 02/14/2010 7:47:34 PM PST by GOPJ (Nobody likes to be lectured by those claiming superior wisdom but lacking common sense - - Hanson)
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To: GOPJ

“In Florida last week a bank robber in his 70’s was found robbing banks of a few hundred each to pay his mortgage... guess he didn’t want to take too much from any one bank.”

Man, that IS sad.


19 posted on 02/14/2010 7:48:41 PM PST by stephenjohnbanker (Support our troops, and vote out the RINOS)
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To: Nick Danger

No, I wouldn’t put the blame for this shady deal on Goldman Sachs but on Greece. Still it’s troubling that they got inside information on a whole blooming COUNTRY having to take its skirts off by a hard deadline. People thinking about trading with Greece would like to know this sort of stuff, capisce? We can’t have the whole world going Greek on us without warning.


20 posted on 02/14/2010 7:49:50 PM PST by HiTech RedNeck (I am in America but not of America (per bible: am in the world but not of it))
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To: Frantzie

The greek officials who agreed to it are also criminal.


21 posted on 02/14/2010 7:51:10 PM PST by GeronL (Dignity is earned from yourself. Respect is earned from others.)
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To: GeronL

If the headline is true, they should speak to Mary Landrieu about striking a 300 million dollar deal on how one can aquire that magic number sum for one’s state or country.


22 posted on 02/14/2010 7:55:10 PM PST by classified
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To: DontTreadOnMe2009

Drudge should post this. Henry Blodget does some very good work.


23 posted on 02/14/2010 7:57:35 PM PST by Frantzie (TV - sending Americans towards Islamic serfdom - Cancel TV service NOW)
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To: DontTreadOnMe2009

At the end of the day, the borrower needs to be responsible for their own decisions. Greece is a sovereign country which has been in existence for thousands of years. It needs to own up to its own debts.

Just like the consumer who “cashed out” their home equity to buy that new car, take that cruise, etc.


24 posted on 02/14/2010 8:11:33 PM PST by nj26 (Say NO to Socialism! Government is NOT the Answer.)
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To: DontTreadOnMe2009

When I see the name Goldman Sachs I immediately assume a financial transaction to the detriment of the rest of society has occurred. I envision the CEO with horns and a pitch fork.


25 posted on 02/14/2010 8:12:46 PM PST by chickenlips
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To: DontTreadOnMe2009
Donald Marron, who testified before the Senate Budget Committee's Crisis and Aftermath: The Economic Outlook and Risks for the Federal Budget and Debt, is advocating getting the publicly-held debt down to 60% of GDP in 2020.

In that article, he cautions that "If we are going to set an explicit target for the publicly-held debt–60 in 20!–, we need to think carefully about what politicians may strategically omit from the calculation of the 60." Here he is referring to US politicians. So this is not a point a finger at Goldman Sachs, but rather, point a finger at the politicians. Goldman did everything legally.

It is a shame that the politicians in Greece took advantage of the legal loophole. Do you think the politicians in the US would not do the same???

26 posted on 02/14/2010 8:14:53 PM PST by tarpit
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To: DontTreadOnMe2009

Maybe Greece should ask for a refund.


27 posted on 02/14/2010 8:26:25 PM PST by count-your-change (You don't have be brilliant, not being stupid is enough.)
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To: DontTreadOnMe2009

The fact that these deals were not classed as debt does not mean they were “hidden.” They would have been disclosed as a different type of commitment or liability in a different place in Greece’s financial statements and footnotes.

If the banks who lent money to Greece never bothered to read Greece’s financial statements whose fault is that?

This is like blaming the Chinese for buying US government debt.

Anyone who is not a Rat socialist or dumb as a bag of hammers knows that U.S. government commitments and liabilities are not sustainable, if you look at the “hidden” unfunded liabilities for medicare, social security, prescription drugs and other entitlement programs.

So is it the fault of the Chinese (or the bankers such as Goldman Sachs who are selling US government securities to them) for the fact that the US has unsustainable liabilities which are “hidden” and do not appear as debt on the federal balance sheet?

Is the U.S. under Obama any different from Greece, except it is happening to Greece sooner than to us?


28 posted on 02/14/2010 8:27:39 PM PST by SirJohnBarleycorn
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To: DontTreadOnMe2009

Goldman Sachs makes Enron look good. They should be shut down.


29 posted on 02/14/2010 8:32:09 PM PST by Brimack34
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To: stephenjohnbanker

You and me both. NWO banks like Goldman and JP have profited from this mess big time, while bankrolling the transition to globalism.

It will suck to be them upon death and realize hell is a real place. ;)


30 posted on 02/14/2010 8:38:57 PM PST by kingpins10
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To: HiTech RedNeck
People thinking about trading with Greece would like to know this sort of stuff, capisce?

People buying and selling stocks would like to have all sorts of insider information. That doesn't mean a company's bankers, accountants, and lawyers should be shoveling confidential information into the street. Who would do business with a bank that blabbed all the deals its clients were working on?


31 posted on 02/14/2010 8:42:43 PM PST by Nick Danger (Free cheese is found only in mousetraps)
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To: GeronL
The greek officials who agreed to it are also criminal.

Criminal in what jurisdiction? Greece is a sovereign nation. If they weren't violating any Greek laws, we're done. The last thing we need is a World Government with World Laws so that you can call the acts of sovereign nations "criminal."


32 posted on 02/14/2010 8:46:16 PM PST by Nick Danger (Free cheese is found only in mousetraps)
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To: Nick Danger

Criminal to their own people, just like our politicians.


33 posted on 02/14/2010 8:51:08 PM PST by GeronL (Dignity is earned from yourself. Respect is earned from others.)
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To: Nick Danger

If Greece made promises in treaties it knew it could not keep, I’d say that comes as close as you can get.


34 posted on 02/14/2010 8:52:48 PM PST by HiTech RedNeck (I am in America but not of America (per bible: am in the world but not of it))
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To: stephenjohnbanker

Yet many people here on FR call everyone who gets into financial trouble “deadbeats,” but excuse the banks and financial institutions who do the same and stick us with the bill.

Then call us socialists for complaining about the billions paid in bonuses at the same time while sticking us with the bill.


35 posted on 02/14/2010 8:54:01 PM PST by packrat35 (Democrat Healthcare is a 9-11 Attack on the Constitution)
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To: GeronL
If the headline is true, heads should roll and be put on pikes.

Be patient.

It's coming.

36 posted on 02/14/2010 8:56:23 PM PST by Jim Noble (Hu's the communist?)
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To: eleni121
“We hang the petty thieves and appoint the great ones to public office.”—Aesop

there is nothing new under the sun
37 posted on 02/14/2010 9:23:26 PM PST by wafflehouse (RE-ELECT NO ONE !)
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To: DontTreadOnMe2009

This is like arresting the bank teller for handing money to the armed robber. The blame here rest solely on the shoulders of the Greek politicians who mismanaged their country’s fisc. Socialist politicians spend like there’s no tomorrow but the people who loan them money are somehow to blame for it.


38 posted on 02/14/2010 9:43:48 PM PST by garbanzo (Government is not the solution to our problems. Government is the problem.)
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To: DontTreadOnMe2009
Freemarketers need to get their heads out of their posteriors.

GS, MS and others are using the excuse that free market means free to do whatever I can get away with.

Free markets should mean free flow of information, low barriers to market entry, etc.

GS, MS, and others are using their "free" market powers to obfuscate and clog up markets, rather than keep them free.

When the libertarians are rounded up by the fascist oligarchs I hope they have sense enough to realize they were just being played as useful idiots.

39 posted on 02/15/2010 12:01:46 AM PST by who_would_fardels_bear (These fragments I have shored against my ruins)
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To: who_would_fardels_bear

>>Freemarketers need to get their heads out of their posteriors.
GS, MS and others are using the excuse that free market means free to do whatever I can get away with.

Free markets should mean free flow of information, low barriers to market entry, etc.

GS, MS, and others are using their “free” market powers to obfuscate and clog up markets, rather than keep them free.

When the libertarians are rounded up by the fascist oligarchs I hope they have sense enough to realize they were just being played as useful idiots.>>

But they are doing “God’s work” (/sarc)


40 posted on 02/15/2010 2:41:43 AM PST by chitownman
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To: who_would_fardels_bear

Bingo!


41 posted on 02/15/2010 4:23:40 AM PST by ClearCase_guy (I was born in America, but now I live in Declinistan.)
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To: packrat35

“Yet many people here on FR call everyone who gets into financial trouble “deadbeats,””

Some of the finest people I know at my church have lost their jobs. Many of them had been on the job 5-20 years.I suppose they are now “deadbeats” too.


42 posted on 02/15/2010 4:42:47 AM PST by stephenjohnbanker (Support our troops, and vote out the RINOS)
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To: Liz; hoosiermama; onyx; STARWISE

Greece paid Goldman Sachs $300 million in fees for arranging the 2001 transaction, according to several bankers familiar with the deal.

PING!


43 posted on 02/15/2010 4:53:12 AM PST by maggief
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To: maggief

B U M P


44 posted on 02/15/2010 5:41:59 AM PST by stephenjohnbanker (Support our troops, and vote out the RINOS)
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To: HiTech RedNeck

Surely this monkey business can’t be exclusive to Greece.l........

I think I read Italy did it a bit


45 posted on 02/15/2010 5:49:54 AM PST by dennisw (It all comes 'round again --Fairport)
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To: who_would_fardels_bear

correct!


46 posted on 02/15/2010 5:51:09 AM PST by dennisw (It all comes 'round again --Fairport)
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To: kingpins10

“You and me both. NWO banks like Goldman and JP have profited from this mess big time, while bankrolling the transition to globalism.”

NAILED it!!


47 posted on 02/15/2010 5:57:03 AM PST by stephenjohnbanker (Support our troops, and vote out the RINOS)
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To: dennisw

“Surely this monkey business can’t be exclusive to Greece.l........”

Almost every large financial transgression has Goldman Sachs fingerprints on it. Coincidence? I think not.


48 posted on 02/15/2010 6:00:28 AM PST by stephenjohnbanker (Support our troops, and vote out the RINOS)
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To: HiTech RedNeck
If Greece made promises in treaties it knew it could not keep, I’d say that comes as close as you can get.

Sure, but there's no criminal justice mechanism that can do anything about it. And thank goodness there isn't. I suppose someone could sue the government of Greece in the World Court, but since they're bankrupt, there's nothing to be gained from it.

All these people who want "Greece" to be treated as a criminal haven't asked the obvious question: who is it that can prosecute a sovereign nation, and before what tribunal? Wouldn't that have to be a World Government? Let's be careful what we wish for.


49 posted on 02/15/2010 6:26:16 AM PST by Nick Danger (Free cheese is found only in mousetraps)
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To: DontTreadOnMe2009
HIGHLIGHTS-Greek FinMin unveils tax reform, wage policy

Mentions Greece making cash transactions above 1500 euros illegal in 2011.

Makes my hair stand on end...

50 posted on 02/15/2010 6:29:24 AM PST by mewzilla (I'm not a socialist. Heck, yes, I hope Barry fails. Sheesh.)
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