The Paulson Payoff at the Bush Treasury Department (David Sirota)

[chill_wind]

Sirota: "Here are just a few factoids about the Goldman Sachs-Government connections that raise questions about the Paulson payoff:"

The Paulson Payoff at the Bush Treasury Department


So again, a simple question: With Goldman Sachs handing incoming Treasury Secretary Henry Paulson an $18.7 million bonus for six months of service, what is the company looking for in return? After all, Goldman Sachs has had a lot of business before the government that Paulson's Treasury Department has been involved in and can influence. Here are just a few factoids about the Goldman Sachs-Government connections that raise questions about the Paulson payoff:

- The nonpartisan Project on Government Oversight (POGO) noted in a major 2002 study that Goldman Sachs is one of the largest beneficiaries of government contracts in America. It is also one of the contractors that POGO noted "have been found to have repeatedly broken the law or engaged in misconduct," yet still receives government contracts.

- MSN Money notes that Goldman Sachs main profit-makers is its offering of "investment banking services to corporate and government clients."

- The Associated Press reported in 2004 that "Goldman Sachs is being sued by investors who say the firm cost them money by trading on advance knowledge of the Treasury Department's announcement in October 2001 that the government was ending sales of new 30-year bonds." Goldman Sachs "previously settled government charges that one of its economists used an illegal tip to make millions for the firm in advance of the announcement."


more: http://www.huffingtonpost.com/david-sirota/the-paulson-payoff-at-the_b_24379.html

POGO report cited by Sirota: http://www.pogo.org/p/contracts/co-020505-contractors.html

The Bush get-along gang at Senate Finance Committee unanimously approved him, even though:
"Paulson, in his testimony, held to existing Bush administration policies on a range of issues, including tax, trade and foreign-exchange policies."

as seen here:

WASHINGTON (MarketWatch) -- Low taxes and open markets are keys to maintaining U.S. competitiveness on the global stage, Treasury Secretary-nominee Henry Paulson told senators on Tuesday.

By William L. Watts, MarketWatch
Last Update: 7:01 PM ET Jun 27, 2006

(...)

Paulson offered few specific policy prescriptions, but said low taxes and "collecting them in a simpler and fairer manner that does not distort economic decision making" would be crucial to a "stronger and more competitive" U.S. economy.<i> He also emphasized a need to address long-term unfunded obligations of the Social Security and Medicare programs, as well as enhancing the flexibility of capital and labor markets</i>.

Tax cuts

Under questioning by the panel, Paulson defended Bush's call to extend the first-term tax cuts, arguing that any increase in the tax load could undermine economic growth.

Paulson said the federal deficit is too large, but argued that the gap remains manageable as long as the economy remains strong.

But there was none of that kind of close scrutiny here, for there's just "simply no equal to Hank.":

Senate confirms Paulson as Treasury secretary
By William L. Watts, MarketWatch
Last Update: 5:57 PM ET Jun 28, 2006

(...)

The Senate approved the nomination by voice vote. Bush nominated Paulson, the departing CEO of Goldman Sachs, earlier this month to replace John Snow, who has headed Treasury since 2003.

Confirmation came just hours after the Senate Finance Committee approved Paulson's nomination by unanimous voice vote. Paulson testified before the committee for around three hours in his confirmation hearing on Tuesday.

"Members on both sides of the aisle came away very impressed with Mr. Paulson as ... an intelligent nominee who appreciates the concerns of senators and will try to work with senators to address those concerns," said Senate Finance Committee Chairman Charles Grassley, R-Iowa.

(snip)

"In the world of finance and international markets there's simply no equal to Hank," said Sen. Charles Schumer, D-N.Y., who praised Paulson's experience in international finance and relationships with Chinese business leaders and government officials. "We need someone who is seasoned. We need someone who knows markets," Schumer said.

more: http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=google&guid=%7B5801D6FE-295A-4326-894B-ACB0454619C5%7D&keyword=

"

[chill_wind]

1. The POGO Report

Revised May 10, 2002
Federal Contractor Misconduct: Failures of the Suspension and Debarment System

Summary

"Many of the U.S. government's largest contractors have been found to have repeatedly broken the law or engaged in misconduct, according to POGO's investigation. However, they are never even temporarily suspended, let alone debarred, from gaining additional government contracts, contrary to Reagan/Bush era laws. POGO's research found that, since 1990, 43 of the government's top contractors paid approximately $3.4 billion in fines/penalties, restitution, and settlements.

Furthermore, four of the top 10 government contractors have at least two criminal convictions. And yet, only one of the top 43 contractors has been suspended or debarred from doing business with the government, and then, for only five days. Our report includes recommendations to improve the system to ensure that taxpayer dollars are not awarded to contractors with long rap sheets."

full text at: http://www.pogo.org/p/contracts/co-020505-contractors.html

Top 43 Goldman-Sachs is number 24 in the report.

Summary of Methodology

This report provides a broad overview of the business ethics of companies that receive the lion's share of government contracts; the top 43 contractors for fiscal year 1999 received 45% of all contract dollars awarded that year.4 These 43 contractors are made up of the top 20 contractors for fiscal year 1999,5 based on total contract dollars received, and the top five contractors of each of the government's top 10 agencies, based on total contract dollars awarded by each agency. Because many of these contractors appeared more than once, the total number of contractors added up to 43. The total contract dollars that are awarded to a company include contracts awarded to specific divisions and subsidiaries of that company as well as joint ventures.6

The data compiled for this report pertains to misconduct and alleged misconduct, occurring between 1990 and 2002, committed by these companies and their subsidiaries. This includes actions brought by the government and private parties. ThIs misconduct and alleged misconduct pertains to a broad spectrum of laws and regulations such as Wrongful Death; False Claims Act; Arms Export Control Act; Antitrust; Truth In Negotiations Act (TINA); and others. POGO also cites cases and settlements where a company was found or alleged to be a responsible party, as defined under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), at Superfund cites. POGO does not cite Occupational, Safety, and Health Act (OSHA) misconducts or National Labor Relations Board (NLRB) decisions in the report or database.

http://www.pogo.org/p/contracts/co-020505-contractors.html#top43GovCon

[acmavm]

2. By voice vote? Rather sneaky I would say.

[chill_wind]

3. AHhh it was all just so totally unanimous.

Took all of 3 hours of their time.

4th largest deficit in US history doesn't rate much more than that in a busy Senator's day.