Skip to comments.Chuck Schumer fund-raiser John Paulson is key figure in Goldman Sachs fraud case, records reveal
Posted on 04/25/2010 8:30:02 PM PDT by neverdem
WASHINGTON - One of New York Sen. Chuck Schumer's top recent fund-raisers is a key figure in the Goldman Sachs fraud case, a review of federal campaign records reveals.
John Paulson, leader of the $33 billion hedge-fund firm Paulson & Co., helped Democrat Schumer collect nearly $100,000 in the first three months of this year. Schumer is running for a third term in November.
The Securities and Exchange Commission says Paulson's company helped assemble a bunch of bad mortgage securities for Goldman Sachs and bet they would tank, while Goldman found buyers who got soaked for $1 billion.
The SEC has not accused Paulson of wrongdoing, but alleges Goldman knew the securities were risky and misrepresented them to investors.
Paulson's role in the alleged shenanigans has not prompted Schumer to refund the cash from his stockpile of nearly $22 million. But it has rung alarm bells.
"Through the years, our general practice has been to return funds when there is a determination of wrongdoing," said Schumer spokesman Brian Fallon. "That hasn't occurred here, but we will continue to monitor this case."
Paulson has said, "We didn't do anything wrong here." Goldman is fighting the charges.
Schumer, the third-most-powerful Democrat in the Senate and a member of the Finance and Banking committees, is a key player in financial reforms under debate in Congress.
Schumer's camp made it clear that it had no qualms about passing the hat among big-bucks donors who are likely to feel the impact of reforms.
The money - a total of $95,300 from 21 Paulson workers and seven of their spouses - was given in advance for an April 5 fund-raiser at the Friars Club in Manhattan.
A spokesman for the firm would only say that John Paulson held the event because he "supports candidates based on keeping the United States the financial and economic capital of the world."
Paulson was more explicit in an invitation to the cash clutch that was first reported by Politico.com.
Schumer "has been one of the few members of Congress that has consistently supported the hedge fund industry, on important issues such as financial regulation, carried interest \[a lower tax rate for hedge-fund manager profit-sharing\], and investor rights," Paulson wrote.
The senator is hardly the only politician to feel Paulson's love. Andrew Cuomo, the state attorney general and presumed candidate for governor, also has raked in nearly $100,000 from him since 2008, and also does not plan to return it unless Paulson is found to have done wrong, said campaign spokesman Josh Vlasto.
Government watchdogs say relationships like Schumer's with Paulson are all too common - and perfectly legal - in a system in which the rich can buy access to policymakers.
Paulson's donations over the years have tilted Republican, which shows he's focused on money, not on political ideals, said Dave Levinthal, a spokesman for the Center for Responsive Politics.
"This is not about any ideology he has but the bottom line of his financial interests," said Levinthal.
Schumer's top donors have long been Wall Street financiers, but many of them have complained lately that he is turning his back on them after the 2008 economic meltdown.
Schumer crashed Indy Mac bank by spreading a rumor. The company failed.
bout 9 months later John Paulson, Soros, Micheal Dell and JD Flowers together bought the wreckage or Indy Mac.
What did they get?
A mtg bank recapitalized by Uncle Sam.
Billions in tax loss carry fowards into the future.
The Democrat party is a wholly owned subsidiary of Goldman Sachs. Some GOP state AG should indict GS or at least file a civil suit.
Soros, Flowers and Paulson are hedge fund operators who made money by:
1. Shorting Indy Mac as Schumer wiped the company out by rumor. They could have made billions.
2. Buy it on the cheap with Feds recapitalizing it and very little down.
3. Tax loss carry forwards in the billions which are essentially tax credits.
WASHINGTON — The Federal Deposit Insurance Corp. reached a preliminary agreement to sell the remains of IndyMac Bank — one of the biggest bank failures in U.S. history — to a team of high-profile investors, suggesting there is private money willing to invest in troubled banks if the government agrees to shoulder heavy losses.
Bloomberg News/Landov Christopher Flowers The investment team, which includes affiliates of private-equity chieftain Christopher Flowers, hedge-fund investors George Soros and John Paulson, and computer mogul Michael Dell, will contribute $1.3 billion in capital toward a purchase of IndyMac Federal Bank. The investor group and the government also agreed to share losses on IndyMac’s portfolio of troubled mortgages, which will likely reach into the billions of dollars.
(Excerpt) Read more at online.wsj.com ...
I feel dirty just reading this!
Also, if memory serves, Indy Mac was run by conservatives.
I can’t believe there is nobody in NY willing to run against theis vicious, corrupt prick.
Each one of these financial companies were tee’d up by the short hedge funds. Raham and Gorlnick and their buddies at Fannie and Freddie made sure all the crap mortgage risk was in all banks. Caused by CRA lawsuits forcing banks to lend to anyone and everyone.
They all knew the cancer was there and waited until the late summer of 2008 to spring the trap with the hedge funds - Soros, Flowers, John Paulson, Steven Coehen (SAC), David Shaw and others. Hedge funds OWN the senate. Chealsea works at a hedge fund.
Supposedly Larry Kudlow is mulling it over. There’s plenty of time.
When the *#@! are we going to put these crooks in jail where they belong?
And I don’t mean Club Fed, either. Devil’s Island would be too good for them!
Great posts! Chuck Schemer should be in prison.
........that in New York, Both the Gillibrand seat AND the Schumer seat are up for re-election?
Hopefully SOMEDODY will run against Chuckie, as well as for the Gillibrand seat.
Some noteworthy articles about politics, foreign or military affairs, IMHO, FReepmail me if you want on or off my list.
Yes he should be.
I'll drink a gleeful toast like I did when the Liberal Lyin' of the Senate, POS-of-all-Pieces-of-Sh*t - ted kennedy kicked it, and display the same, albeit temporarily, sh*t-eating grin this left-wing, un-American jackal displayed often, when he finally goes (one way or another), and God...
HE NEEDS TO GO!!!!!!!!!!!!!!!!!!!
Yet the members of the political class in DC--who are in positions of power--take tens of thousands from criminals, and simply put out a press release saying "OH, how horrible, here's the money back!" and that's it. The self-appointed gatekeepers on TV and in newspapers don't put pressure for investigations. It's a one-day story.
See comment# 12.
Thanks for the ping!
They only give it back if they get caught and the MSM doesn't bury the story.
The Democrat Party is a Criminal Enterprise
Christopher Flowers is the brains behind ex-Goldman head Jon Corzine's deals.
Corzine spent $126 million to get his Senate seat and the Governor's office. "Return on investment" was the name of ex-Goldman head Jon Corzine's game----and he was very succesful using govt office to profit.
EXAMPLE Then-US Sen Corzine colluded with principles of Corzine's so-called "blind trust" to lead the lucrative takeover of Shinesi---the troubled Japanese bank. Corzine used the power of his Senate office to pass a bill to approve a tax treaty........ providing a special exemption from Japanese taxes on investment profits. Corzine said he was **not aware** of and did not **benefit** from the special provision.
(Waiting for hysterical laughter to die down)
THE SHINESI DEAL UP CLOSE Nancy Martori Dunlap, Esq, is Corzio's hand-picked trustee overseeing his vast assets, including his "blind trust." Dunlap and James I. Black, Esq, execute financial decisions made by Corzine's pal----Wall Street's J. Christopher Flowers.Flowers decides where to invest Corzine's fortune--Flowers is the man who led the Shinesi Bank takeover. He and Jonny made a bundle of money.
Corzines private investment apparat
JSC Investments (one of three Corzine registered in Delaware)
JSC Investments Officers:
Nancy Matori Dunlap, Esq
Jib Black, Officer, Esq
J. Christopher Flowers (makes investments for Corzine--led the Shinesi Bank deal)
As NJ Governor, Corzine launched TPG-Axon hedge fund Feb 2005 as a $2.8 billion joint venture between TPG and Dinakar Singh, a former G/S trader who worked under Corzine.
REFERENCE Goldman Sachs opened an office in Princeton NJ 2006 when Corzine was elected governor (the better to loot the NJ Treasury).
Goldman Sachs Hedge Fund Partners
701 Mount Lucas Rd
Princeton, NJ 08540-1911
G/S Hedge Fund Partners advertises it has $1.5 Billion to invest in traditional infrastructure sectors including transport infrastructure such as "monetizing" toll roads, airports and ports as well as "monetizing" regulated gas, water and electrical utilities.
COMING TO A TOWN NEAR YOU Mother Jones magazine circa Feb 2007 reported on the activities of Mark Florian, Chief Operating Officer of Goldman Sachs' municipal finance division. According to the report, Florian was traveling to statehouses across the US to convince state officials that selling state assets would be "mutually beneficial." One of the scams involved "monetizing state roads. NOTE WELL: Monetizing means G/S bonding (AKA taxpayer debt)----which earns $billions for G/S til the end of time.
Then-NJ Gov Corzine (ex-Goldman head) stationed Goldman Sachs functionaries in state government as the issue of road monetization surfaced. Corzine hired four G/S buddies, including G/S alumnus Bradley Abelow as state Treasurer. Corzine took a road show across the state to sell the monetization deal. However, monetizing NJ roads hit a large pothole and collapsed like a flat tire---b/c taxpayers were onto the G/S bonding-debt scam.
THE CORZINE LOOTING BEGINS Corzio appointed his Goldman-Sachs buddy Bradley Abelow as Treasury chief. Abelow and Corzine botched pension fund investments bigtime. The losses (THAT WE KNOW OF) include:
(1) $250 million pension monies into a company in which Abelow's wife was invested. (2) Abelow invested in Amaranth Advisors LLC (that promptly lost $20 million for the pension system). (3) Abelow put $2 billion pension money in REITs in 2006 at a time when the real estate business was exploding. (4) Abelow put $1.6 billion pension money in his old company----Goldman Sachs Hedge Fund Partners.
Wall Street "geniuses" Corzio and Abelow must have known that Goldman Sachs Hedge Fund Partners reported losses of over 12% for 2006, since Abelow and Corzine are former Goldman Sachs employees.
Under Abelow and Corzio, the state pension fund was billions in arrears. The state is under federal investigation for improperly diverting tax-exempt bond proceeds meant for the pension fund to "other uses."
There are no details WRT state monies the G/S geniuses put into the trillion dollar sub-prime atrocity.
“) Abelow put $2 billion pension money in REITs in 2006 at a time when the real estate business was exploding”
Anyone half way aware of the real estate market would have been a fool to put even 50,000 into real estate in 2006. The market was WAY over heated, and was due for a major correction.
Oh please----that's the PR they put out for popular consumption. The $2 billion state pension money was being wire-transferred into their numbered accounts offshore.
Looting pension funds is what Wall Street does best.
HERE'S ANOTHER SCAM THE PENSION HANDLERS PULLED OFF: On 11/22/08 news reports said the state pension fund was looted of another $94 million.
The State Investment Council's pension investment in Blackrock Hedge Fund went below margin requirements--- the pension fund has to come up with another $94 million or its investment will go down the toilet. SIC head Orin Kramer said "bank loans" that Blackrock invests in are much safer than common stocks which make the pension investment "attractive. " Treasury's Tom Vincz says the state stands to earn 20% return on this "new investment"
(waiting for hysterical laughter to die down)
SURPRISE SURPRISE---GOV JON AND PENSION HANDLER ORIN KRAMER OWN A PIECE OF BLACKROCK The Blackrock scammers collected "management fees" Just a "coincidence" that Corzine's business associates and Kramer's business associates own a piece of Blackrock.
AND YET ANOTHER SCAM In August 2007, news reports said Gov Jon began appropriating $81 billion state pension funds to "invest" in economic development ventures. The New Jersey Directed Investment Fund was bankrolled with $100 million -----and will work with Wall Street to "identify investments." Specific investments were not identified. Investing New Jersey's money in New Jersey companies is a sound business decision that will help to encourage job creation, and is consistent with Gov Corzine's economic growth strategy," said Gary Rose, chief of the administration's State Office of Economic Growth. (waiting for hysterical laughter to die down)
State Office of Economic Growth (invests state money)
Statehouse, 125 West State Street
Trenton, NJ 08625
CHECK THE HEDGE FUNDS Most NJ observers conclude the dwindling NJ pension has govt insiders working the scam with hedge funds.
Orin Kramer, Chairman
New Jersey State Investment Council (SIC) (makes alternative pension fund investments)
WEB SITE http://www.state.nj.us/treasury/doinvest/
Orin Kramer, General Partner
Boston Provident Partners LP (hedge fund) (formerly Kramer Spellman LP)
New York, New York 10022
What’s the big secret? Everybody knows that Lindsey Graham is a closet queen.
“Oh please——that’s the PR they put out for popular consumption. The $2 billion state pension money was being wire-transferred into their numbered accounts offshore. “
How can the disappearance of that much money go unaccounted for? Aren’t there auditors? Aren’t there any internal safeguards whatsoever?
” HERE’S ANOTHER SCAM THE PENSION HANDLERS PULLED OFF: On 11/22/08 news reports said the state pension fund was looted of another $94 million.
The State Investment Council’s pension investment in Blackrock Hedge Fund went below margin requirements-— the pension fund has to come up with another $94 million or its investment will go down the toilet. SIC head Orin Kramer said “bank loans” that Blackrock invests in are much safer than common stocks which make the pension investment “attractive. “ Treasury’s Tom Vincz says the state stands to earn 20% return on this “new investment”
And where was Larry Fink this whole time? Fink has been involved with numerous dirty dealings over the past few years, and he not only is never implicated, he ends up getting the “liquidation contracts” for the companies he helped to plunder.
Larry's busy. Fink serves on the board of trustees of New York University, and holds various chairmanships including, the Financial Affairs Committee. He is a member of the Executive Committee, and also co-chairman of the NYU Hospitals Center Board of Trustees. Fink is a trustee of the Boys' Club of New York.
In 1989, Fink founded BlackRock, an investment management firm which today is a leading firm in its sector. Fink, chairman and chief executive officer of BlackRock, is chairman of the Executive and Management Committees.
BTW, Fink's eldest son, Joshua Fink, serves as chief executive officer of Enso Capital.
I guess they OWN them too ;-)
“Larry’s busy. Fink serves on the board of trustees of New York University, and holds various chairmanships including, the Financial Affairs Committee. He is a member of the Executive Committee, and also co-chairman of the NYU Hospitals Center Board of Trustees. Fink is a trustee of the Boys’ Club of New York. “
Yeah....sure...what the hell? I would do this too!
Goldman Sachs and the Art of Ripping Your Clients’ Faces Off
Three people have entered the race against Gillibrand, because she is the more vulnerable of the two candidates. The three are Bruce Blakeman, David Malpass, and Joe DioGuardi. So far, DioGuardi is leading. He’s my pick— I’ve been watching him since December because of his activism on Congressional accountability or lack thereof. David Malpass is the fave of Repub elites, and appears to have an extreme case of either poor judgment or much worse. Example: he wrote a Wall Street Journal on the solid basis for the housing market just as Bear Sterns, where he worked as Chief Global Economist, was realizing that their exposure in subprime mortgages was causing their immminent demise.
He worked at Arthur Andersen as an accountant, but based on a single degree has passed himself off as an economist.
Thanks cookcounty for that remark, and thanks neverdem for the ping.