$22 billion of federal bail-out funds went to Goldman Sachs execs

[Bluebear]

Security Police and Fire Professionals of America Retirement Fund, Roseville, Mich., filed a lawsuit in New York Supreme Court against Goldman Sachs Group, claiming the company breached its fiduciary duty by awarding excessive executive compensation over the interests of shareholders.

“Shareholders are entitled to a greater portion of the returns,” plaintiff's attorney Jay Eisenhofer, co-managing partner of Grant & Eisenhofer, said in an interview.

The $5.8 million fund's lawsuit claims that the payouts to Goldman Sachs Group executives, estimated to be more than $22 billion, largely come from federal bailout funds that were intended to stabilize the financial industry.

“During the midst of the credit crisis, Goldman accepted a $10 billion TARP loan. Additionally, in the fall of 2008, the Federal Deposit Insurance Corp. enabled Goldman to generate $29 billion in cash by issuing FDIC insured debts through the Temporary Liquidity Guarantee Program,” according to a news release from Grant & Eisenhofer. “Further, Goldman received federal funds from contractual counterparties who used federal funds to pay their obligations to Goldman. Most notably, the company received an astounding $13 billion of taxpayer money when insurance giant AIG used TARP funds to satisfy certain financial contracts with Goldman.”

http://www.pionline.com/article/20091215/DAILYREG/912159989/1039/PRIVATEEQUITY

[spooky3]

1. Disgusting. I hope the retirement fund wins.

[Jakes Progress]

2. Words fail. How much proof is needed of what is happening? nt

[Hydra]

3. I bet Goldman pulled in even more than that

I picture a huge vacuum cleaner sucking up all of the money Bush missed.

[Octafish]

4. Geithner made certain GS got PAID.

AIG got paid and then THEY paid GS 100-cents on the dollar. That was after AIG had negotiated a 40-cents on the dollar haircut.

[aquart]

5. I hope they all take the corporate jet together.

That's all.

[Vinnie From Indy]

6. That is Twenty-two THOUSAND MILLION 22,000,000,000.

Or,
22,000 folks at GS took home $1,000,000. in bonuses.

That is doubtful becuase the UPPER management is clocking 20,30,40 million in YEARLY BONUS!

These guys make La Cosa Nostra look like kids with a lemonade stand.

It is just too awesome of a thing for words. Sublime greed maybe?

[Bluebear]

7. 'These guys make La Cosa Nostra look like kids with a lemonade stand.'

You said it, er, Vincenzo! :toast:

[rucky]

8. This lawsuit is big news!

Imagine if all the other pension funds out there did this?

[G_j]

9. K&R

[SOS]

10. State monopoly capitalism:

"Big business, having achieved a monopoly or cartel position in most markets of importance, fuses with the government apparatus. A kind of financial oligarchy or conglomerate therefore results, whereby government officials aim to provide the social and legal framework within which giant corporations can operate most effectively."

The final stage before collapse.

[rudy23]

11. We can't afford to build a levee for New Orleans, though. nt