Henry Paulson, onetime CEO of Goldman Sachs and Secretary of the Treasury during the Bush and Obama administrations, has endorsed Hillary Clinton ashis choice for President.
Paulson is best known for authoring and orchestrating the massive government bailout of the U.S. banking industry in 2008. Paulson worked for Goldman Sachs from 1974 through 2006 and rose through the ranks to CEO during that time. Goldman Sachs has been colloquially referred to as “Government Sachs” given that no other financial institution has as many of its employees in government and as many government employees in its employ. In 2006 the Bush Administration appointed Paulson as the Secretary of the Treasury.
As the 2008 housing crisis worsened, Paulson was strangely slow to acknowledge and react to it. As late as July 2008 Paulson was quoted saying “It’s a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation.” (“List Of Troubled Banks Will Grow, Paulson Says” CBS News).
Three months later Pres. George W. Bush would sign the TARP program into law which purchased billions in toxic mortgage
assets from the banking industry. While many banks benefited from the $475 billion dollar bailout, few banks benefited as much as Goldman Sachs which was near failure at the time. Paulson’s role in the bailout has been highlighted in such documentaries as “Too Big to Fail” and “Inside Job.”
It is clear that Paulson, at the helm of Goldman Sachs, directed the bank to invest in and sell high risk mortgage backed securities, making billions at the expense of homeowners and the working class. He profited handsomely from these reckless investments, pocketing $600 million in 2006 when he sold his position with Goldman Sachs in order to avoid conflicts of interest upon accepting his new role as Secretary of the Treasury. Then, he bailed out the same bank with taxpayer funds no more than a year and a half later. Many have alleged that his role in the bailouts was a significant conflict of interest given his close ties with Goldman Sachs.
Indeed, some say that his hesitancy to acknowledge the crisis and begin the bailouts was to provide Goldman Sachs ample time to maximize their profits before the bailouts begin. However, a provision in the bailout legislation, penned by Paulson himself, prevented the actions of the Secretary of the Treasury from being reviewed by any court of law. This ensured that he can never be held liable for his own actions in bailing out the banks. This is a sobering admission that Paulson was well aware of the likelihood of charges being filed against him for what he was about to do with billions in taxpayer funds.
While the details may be numerous, the story is really very simple. Paulson made hundreds of millions off of the toxic home loans that destroyed the livelihoods and homes of millions of people in the U.S. Then, when Goldman Sachs neared bankruptcy from such reckless investments, he used the money from those same taxpayers to keep Goldman Sachs in business and not only in business but extremely profitable, as there were no clauses in the bailout legislation which required the banks to spend the funds in any particular way. Unsurprisingly, the banks used the funds to give massive bonuses to their executives. Finally, Paulson ensured he could never be held accountable in a court of law for his actions.
This is the man that, a few days ago, heartily endorsed Hillary Clinton for President. This should come as no surprise as her relationship with Goldman Sachs, cemented with hundreds of thousands of dollars in speaking fees, has always been extremely friendly.
Any argument that Hillary Clinton is not completely at the beck and call of the banks should quickly fall apart in the wake of such an endorsement by Paulson. Both Clinton and her husband have received over $150 million dollars from the banking industry over the lifetime of their careers and there is no reason to think that the concerns of working class voters will outweigh such a massive payday.
While some argue that a Clinton presidency would be better than a Trump presidency, it is important to realize that the banking industry knowingly destroyed the homes and jobs of millions of working class people in order to reap super profits. This is the same industry that never saw a single prison cell because of politicians like Clinton, politicians who were willing to accept millions of dollars in exchange for protecting and promoting the interests of these criminal organizations. While there is much to be disgusted by in Trump’s racist and sexist rhetoric let us not be fooled: a vote for Clinton is a vote for the banks.
This is why the Party for Socialism and Liberation is running our own candidate for President, Gloria La Riva. La Riva and the PSL demand the return of the great wealth of society to the working class people who created it. This year don’t vote for the banks and don’t vote for racist demagogues. Vote for a socialist future where the needs of society come before the needs of the billionaires. Vote Gloria La Riva for President!
