Rep. Cliff Stearns (R-FL): Investigate Bush Treasury Sec’y Paulson For Conflict of Interest

stearns.house.gov

Cliff Stearns
Contact:
Paul Flusche 202.225.5744


STEARNS REQUESTS INVESTIGATION BY FINANCIAL COMMISSION INTO CHARGES BY FORMER FEDERAL REGULATORS OF CONFLICT OF INTEREST BY FORMER TREASURY SECRETARY PAULSON

BASED UPON NEW EVIDENCE THAT PAULSON FAILED TO ACT WELL BEFORE THE FINANCIAL MELTDOWN
Washington, Nov 3 –

Noting statements by former regulators, Rep. Cliff Stearns (R-FL) is urging the Financial Crisis Inquiry Commission (FCIC) to investigate former Treasury Secretary Henry Paulson who the regulators indicated had a clear conflict of interest and deliberately acted in the best interest of his former firm, Goldman Sachs. Said Stearns, “Mr. Paulson’s inaction and perhaps intentional failure to perform a required duty during his first 15 months as Secretary reveal his complicity in putting Wall Street before Main Street.” Stearns wrote to Phil Angelides, Chairman of the FCIC, outlining how Paulson failed to take action to address the housing bubble because it would have harmed the financial position of Goldman Sachs (a copy of this letter is attached).

In his letter, Stearns included a statement from former thrift regulator William Black who noted that “No one was better positioned…than Mr. Paulson to understand exactly what the implications of his moving against the (housing) bubble would have been for Goldman Sachs, because he knew what the Goldman Sachs positions were.” Mr. Black testified before the FCIC on September 21, 2010, adding that Paulson “knew that if he acted the way he should, that would have burst the bubble. Then Goldman Sachs would have been left with a very substantial loss, and that would have been the end of bonuses at Goldman Sachs.”

Stearns also cited a statement to Congress by Richard Newsom, former senior thrift examiner and key investigator of the Lincoln Savings and Loan collapse of the 1980s. Newsome said that it was “simply implausible that Paulson couldn’t see the relation between delaying strong action by Treasury and the benefit to letting places like Goldman” reduce their risks.

6 Responses

  1. I seem to recall reading that Mr. Paulson made a bundle as he exited his position from the government. This incestous arrangement is not just with the Treasury, this also runs throughout our government such as the FDA. First, they have a job in the private sector for some drug company, and then they get a government job. Do I smell conflict of interest? http://www.challengingforeclosure.com
    Sirak@challengingforeclosure.com

  2. […] This post was mentioned on Twitter by kim thomas, Financial Wellness. Financial Wellness said: stearns.house.gov Cliff Stearns Contact: Paul Flusche 202.225.5744 STEARNS REQUESTS INVESTIGATION BY FINANCIAL … http://bit.ly/beVCRj […]

  3. Oh gheez, you reckon’ Paulson knew a thing or two about how GS and all of his cronies were positioned? And where would you think his affections lay? A 5 year old with a crayon could paint the scarlet GS on Hank’s forehead.

    Folks, what we as American citizens need to do to save our nation is nail shut the revolving doors behind the capitol building….seal them all shut….whether those doors lead to Corp Ag, FIRE, the Chamber of Commerce….. The pandering to special interests is no longer a simple problem of influence here and there, like a bridge to nowhere, it’s a complete and total highjack of our constitution and means the very destruction of our system. We have NO VOICE against these high dollar power mongers.

    And it’s the very reason each and every one of us are suffering such incredible difficulties fighting against predatory practices in a usurious lending system that needs to be reformed now, not later. Death to Wall street. Death to K street.

  4. Poulson was the perfect ‘wolf’ to guard the ‘chicken coop’ and the ‘sheep’.

    “chicken coop” == Wall Street
    “sheep” == Main Street

  5. Bells and whistles folks REAL congressmen don’t request investigations they order them. We don’t have leaders in America, we have actors feading us BS.

  6. Here is the actual letter to the FCIC sent by Rep. Stearns…

    http://stearns.house.gov/UploadedFiles/Letter_to_Chairman_Angelides_-_Paulson_GS.pdf

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