September 15th, 2009 17:57 EST
Bailout Scandal: Paulson Reportedly Committed Perjury
1. Paulson told this person (who is writing a biography, apparently) that he intended to use the TARP money to inject into the banks and not buy toxic assets a full ten days before he testified before Congress.
2. He then testified before Congress to exactly the opposite.
Video feed and report available at the Market Ticker:
Paulson and Goldman Sachs: A dirty secret of the Wall Street bailout
"The article, based on Paulson`s official schedules for 2007 and 2008, obtained by the Times through a Freedom of Information filing, documents the close collaboration between Paulson and his successor as chief executive of Goldman, Lloyd C. Blankfein, in the course of the financial crisis of the past two years. It focuses on mid-September of 2008, the high point of the crisis, when the government decided to allocate $85 billion to bail out the failing insurance and financing firm American International Group (AIG)." [snip]
" ... [Goldman Sachs] stood to lose $13 billion in credit default swaps and other derivative contracts with AIG." [snip]
"Paulson and his collaborators in orchestrating the bank bailout, including Federal Reserve Board Chairman Ben Bernanke and Timothy Geithner, then president of the Federal Reserve Bank of New York and now Obama`s treasury secretary, were well aware of the legal implications of Paulson`s role in rescuing Goldman with public funds." [snip]