October 11, 2009
If you’ve been paying any attention at all to the financial world you will know that Goldman Sachs, J.P. Morgan Chase and Citigroup have risen above all other banks after the financial crisis of last year. Citigroup faired the worse with its stock falling to its lowest of $1.13 but has rebounded to $4.63 today, and still relying on government support. But J.P. Morgan Chase went from $15.90 in March of this year to $45.85. Then there’s Goldman Sachs. They faired best of all. Even their low of $52 in early December of last year never threatened them, and today their stock is worth $189.30, just $40 off their all-time high which came just months before the collapse. They’ve hardly felt a pinch. So how did these three manage to do that?
The answer is quite simple really; they have very good friends in very high places, with two in particular. First it was former treasury secretary Henry Paulson who was replaced with Tim Geithner when Paulson left. The treasury secretary is the strongest of the duo that control all the money in our country. You couldn’t ask for a better bosom buddy.
This article says that Geithner was “in frequent contact with Goldman, J.P. Morgan and Citigroup this past spring”. It also points out that as members of an “exclusive club” the CEO’s of the three companies, “who have known Geithner for years, whose multibillion-dollar companies survived the economic crisis with his help, can pick up the phone and reach the nation’s most powerful economic official” any time they want.
According to the Washington Post article, the AP obtained a copy of Geithner’s calendar which showed “the extraordinary influence of those three companies. More than any of their rivals, Goldman Sachs, Citigroup and J.P. Morgan Chase can get Geithner on the phone — several times a day if necessary — giving them an unmatched opportunity to influence policy” [bold added]. Geithner talked to the three CEO’s 80 times during his first seven months as treasury secretary, which reflects his long-standing ties to the three companies.
None of this should come as any surprise to anyone. Those that would try to justify this illegal and immoral relationship which transferred a vast amount of wealth upward would say that’s what it took to keep the American banking system, as well as our economy, from collapsing. But that’s BS. These actions over the past year are only a short term fix at the expense of American taxpayers resulting in a lot of wealthy people not only keeping all their wealth but adding to it.
At no point did these bankers consider paying any of the consequences of their deliberate actions that brought them and the rest of the country to our knees. And Paulson and Geithner, by their action, told them they needn’t have to. In fact, they have profited very well from it. Which brings the real problem into glaring view: coming out of this as even bigger bankers than they were before, it will happen all over again, and it will be done quicker the next time with even a bigger cost to the taxpayers making more wealthy people even wealthier. Therefore, not only will none ever pay a price for their action, their life style will never even be affected. Is it any wonder the rest of the civilized world see’s us as simply a corrupt nation who will stop at nothing to keep our elitist wealthy and in power?
Geithner and Banks: Something is Rotten in DC « Cynical Synapse // Oct 14, 2009 at 10:33 PM
[...] said Timothy Geither as Treasury Secretary was like the fox watching the hen house. Apparently, Geithner has quite the cozy relationship CEOs of Goldman Sachs, J.P.Morgan Chase, and Citigroup, all headquartered in New York. Remember, [...]