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Profile: Goldman Sachs
Goldman Sachs was a participant or observer in the following events:
Gary Cohn. [Source: Evan Walker / White House]Gary Cohn, head of commodities at the investment bank Goldman Sachs, instructs employees at the bank’s offices in Lower Manhattan to continue trading after the planes crash into the World Trade Center, so the company can make money out of what is happening. This is according to Nomi Prins, a managing director at the bank who is working in the Lower Manhattan offices this morning. [HuffPost, 9/3/2012; Mic, 1/27/2017] Just after the first hijacked aircraft crashed into the WTC, at 8:46 a.m. (see 8:46 a.m. September 11, 2001), Prins is on the fourth-floor trading floor, which is the commodities trading floor. [Jerome Fritel and Marc Roche, 9/4/2012] She and her colleagues have little idea what has happened, but they follow the coverage of events on the television screens dotted around the trading floor. [Drum Major Institute for Public Policy, 9/11/2006; Progressive, 5/5/2014] “We just knew that there was an airplane that had hit the building,” she will later recall. “It wasn’t like we necessarily knew at that particular moment about it being a terrorist attack or not, but that was the initial instinct,” she will say.
Traders on the Oil Desk Continue Working during the Attacks - However, Cohn, who is in charge of the commodities trading floor, apparently makes no effort to find out more about what is happening, nor does he tell employees to evacuate the building, even though it is located just a few blocks away from the WTC. Instead, he instructs his traders to keep working. This, according to Prins, is “because his gut instinct was there could be money made out of whatever was going on, because it had to do with planes; so, if it had to do with planes, it had to do with oil; if it had to do with oil, [Goldman Sachs] could make money.” [Jerome Fritel and Marc Roche, 9/4/2012; Mic, 1/27/2017] Some employees find it “really off-putting” that the traders on the oil desk are “making market” at such a perilous time, “because people were trying to figure out what was going on,” Prins will comment. “It was just really strange,” she will add. [Progressive, 5/5/2014]
Commodities Head Is Trying to 'Take Advantage of That Volatility' - Reflecting on what happened in 2017, Prins will say she doesn’t think Cohn was “trying to put anybody in danger” by telling them to keep trading at a time of such uncertainty. Instead, she thinks that “while there was a sort of questioning as to what was going on and [a] combination of, at that point, both panic and uncertainty, what he wanted to have continue was for Goldman and the traders [to] take advantage of that volatility or that chaos in the trading of oil, which would be the commodity most related to airplanes.” Prins will leave Goldman Sachs a few months after 9/11 and become a journalist. She will write extensively and critically about the bank she previously worked for. [Drum Major Institute for Public Policy, 9/11/2006; PBS, 3/19/2012; Mic, 1/27/2017]
The share price in the insurance giant AIG collapses to $4.76 amid fears over the company’s credit rating, which is subsequently cut by Standard & Poor’s and Moody’s. This means that the company needs additional capital, and it is given permission by New York State to access $20 billion in its subsidiaries. In addition, Goldman Sachs and JPMorgan Chase work to prepare a potential $75 billion lifeline. [Bloomberg, 9/16/2008; Bloomberg, 3/5/2009] However, this is not enough, and the US government will be forced to seize control of AIG the next day (see September 16, 2008).
The insurance corporation AIG, which was recently bailed out by the US government (see September 16, 2008), makes $18.7 billion in payments to other world banks. The payments are related to credit default swaps, and are made in the three weeks after the bailout to institutions such as Goldman Sachs and Société Générale. [Bloomberg, 3/5/2009]
Troubled insurer AIG discloses that several US and European banks have been beneficiaries of the government’s bailout of the insurance company (see September 17-October 7, 2008). It announces that more than $90 billion was paid to various banks between the September bailout and the end of 2008. The banks include Goldman Sachs, Société Générale, Deutsche Bank, Barclays, Merrill Lynch, and Bank of America. Goldman Sachs, which received $12.9 billion between mid-September and the end of December—making it the largest beneficiary, will later say it did nothing wrong by accepting payments to close out trades before and after the insurer was rescued. [Reuters, 4/17/2009]
The US Treasury Department concludes that financial firms American Express, Bank of New York Mellon, Branch Banking & Trust (BB&T), Capital One Financial, Goldman Sachs, JP Morgan Chase, Morgan Stanley, Northern Trust, State Street, and US Bancorp can return $68.3 billion in emergency bailout funds to government coffers although some of the banks have assets that are still government-controlled, with warrants worth approximately $4.6 billion. Twenty-two smaller banks already returned $1.9 billion. Morgan Stanley receives Treasury permission to return its TARP funding despite bank stress test details released early last May ordering the bank to increase its capital cushion fund by raising $1.8 billion. In a Treasury release, Secretary Timothy Geithner explains, “These repayments are an encouraging sign of financial repair, but we still have work to do.” President Obama comments that the ability of companies to repay the government does not detract from the need for reform. “The return of these funds does not provide forgiveness for past excesses or permission for future misdeeds,” he says. “This is not a sign that our troubles are over. Far from it.” [United Press International, 6/9/2009; New York Times, 6/9/2009]
Entity Tags: Capital One Financial, Bank of New York Mellon, American Express, Branch Banking & Trust (BB&T), US Bancorp, US Department of the Treasury, State Street, Goldman Sachs, JP Morgan Chase, Morgan Stanley, Northern Trust, Barack Obama, Timothy Geithner
Timeline Tags: Global Economic Crises
Stephen Schwarzman. [Source: Time magazine]Stephen Schwarzman, one of Wall Street’s leading hedge fund managers, equates the Obama administration’s plan to levy taxes on the private equity industry as akin to Adolf Hitler’s invasion of Poland, London’s Daily Telegraph reports. Schwarzman says America faces a “crisis of leadership” that is hindering the nation’s economic recovery. His concerns are echoed by Daniel Loeb, the founder of the Third Point fund, who accuses the Obama administration of attempting to implement economic “redistribution rather than growth.” Loeb decries an April 2010 lawsuit brought by the Securities and Exchange Commission (SEC) against Wall Street investment firm Goldman Sachs as “politically laced,” and blames the lawsuit for making investors lose confidence in the economic recovery. Loeb says that “so long as our leaders tell us that we must trust [them] to regulate and redistribute our way back to prosperity, we will not break out of this economic quagmire.” [Daily Telegraph, 8/31/2010]
Glenn Beck discusses the Tides Foundation during his Fox News broadcast. [Source: NewsRealBlog (.com)]Journalist John Hamilton publishes the results of a series of interviews with Byron Williams, who is charged with multiple counts of attempting to murder police officers from a shootout with Oakland, California, Highway Patrol officers (see July 18, 2010 and After). Williams has said that he targeted a progressive charitable foundation in San Francisco, the Tides Foundation, because of its liberal policies, and has said he intended to “start a revolution by traveling to San Francisco and killing people of importance at the Tides Foundation and the ACLU.” Since his arrest, Williams has retained Hamilton to be his “media advocate.”
Williams and Fox's Beck - Williams told Hamilton that his primary political influence and informational source is Fox News talk show host Glenn Beck. Williams had Hamilton watch specific broadcasts of Beck’s shows to glean information about what Williams describes as an intricate conspiracy between President Obama, liberal philanthropist George Soros (see August 8, 2006 and February 2007), Brazilian oil company Petrobras, and BP, the corporation responsible for triggering the Gulf oil disaster. Williams also cites right-wing pundit David Horowitz (see August 5, 2003 and November 30, 2004) and right-wing conspiracist Alex Jones (see July 24, 2009) as other influences. The progressive media watchdog organization Media Matters notes that Beck spoke 29 times about the Tides Foundation in the 18 months leading up to Williams’s shooting spree, sometimes at length; other pundits rarely mentioned the organization, if at all, during that same time period. Williams defends Beck, saying that the talk show host advocates non-violence and merely “confirm[ed]” his belief in the conspiracy. “Beck would never say anything about a conspiracy, would never advocate violence,” Williams told Hamilton. “He’ll never do anything… of this nature. But he’ll give you every ounce of evidence that you could possibly need.” Beck, he says, is “like a schoolteacher on TV. You need to go back to June—June of this year, 2010—and look at all his programs from June, and you’ll see he’s been breaking open some of the most hideous corruption.” In that month, Beck advised his viewers to stop a Democratic-orchestrated “march towards Communism” by “shoot[ing]” Democrats such as Speaker of the House Nancy Pelosi (D-CA) “in the head (see June 9, 2010).
Genesis of a Shootout - Williams moved to his childhood home in Groveland, California, in 2007 after serving a prison sentence for a 2001 bank robbery. Williams has an extensive criminal record, and has been convicted of assault, property destruction, hit-and-run, and drunken driving. He lived with his mother during that time, unable to find steady work, and growing increasingly depressed and fascinated with right-wing radio and television. His neighbor, Tom Funk, told Hamilton of Williams’s profanity-laden tirade on the night of November 4, 2008, after Obama won the presidency. He remembered Williams shouting what he calls racist, drunken threats after the news of Obama’s victory was announced, saying: “He was up there cussing and saying that America is not going right by having a black president. He was using words he shouldn’t be saying after 9/11, because it would have put him in jail. Threatening words towards the president.” In the days before and after the election, Funk said, Williams liked to listen to radio talk show host Michael Savage (see January 10, 2008, March 13, 2008, and November 10, 2008). Hamilton found transcripts of Savage’s radio broadcasts during that time; Savage held forth about the “bloodbath coming to America” should Obama be elected, and predicted that the nation was on “the verge of a Marxist revolution in the United States of America. You have a naked Marxist, America-hating, white-hating [Democratic] party—wing of the party—about to seize power. And you don’t even know it.” Hamilton then interviewed Williams’s mother Janice, who drives an SUV with “Palin 2012” bumperstickers on it. Williams’s mother told Hamilton that in phone calls and a letter to her, her son “basically said: ‘I’m sorry, I never intended to hurt anyone. I got really angry and lost my head.’” She said she did not believe her son would actually have attacked either the ACLU or the Tides Foundation. She also denied that her son shouted racial imprecations after Obama’s election, saying: “I read one account that he used the n-word. I don’t believe that. The neighbors told that to the media, but they just wove that out of whole cloth. I don’t care how loud anyone here gets, there’s no way anyone over there could have heard anything that far away. It’s just someone seeking publicity.” She said her son does not tolerate alcohol well, because he is partly “American Indian… [t]hat’s why he can’t drink.” The day of the shooting, she “found 18 or 20 beer bottles by the sink.” Her son is angry, she told Hamilton, because of “the federal government. And the shadow government that operates behind the scenes, manipulating things.” She said she agreed with many of her son’s concerns about government intrusion: “I believe in limited government. The government should be there solely for the purpose of protecting our borders. All the other stuff is add-ons. This whole Obamacare thing has everything to do with consolidating government. There’s no concern about the little people. Having said that, my hope was to retake the country peacefully, through the ballot box.” She denied that her son was influenced by Beck, Savage, or any other right-wing commentator, saying: “All the reporters who came out here last month were blaming what he did on Rush [Limbaugh], Glenn Beck, and the tea party. Why would you blame the messenger? If Glenn Beck tells us something, and everyone gets upset about it, why blame him?” She called the Tides Foundation “a money laundering scheme for the radical left that didn’t want their names attributed to what they were doing,” a charge first leveled by Beck. She did confirm that her son was a Beck fan: “Yes, he liked Glenn Beck, but he didn’t feel he went far enough. He’d take it only so far, but stopped short.” She added that almost everyone she had heard from after the shooting supported her son’s position: “I had only one hate call out of all the thousands of people who heard about this case. Most people have expressed support—not for the act, but for the frustration behind it.”
Jailhouse Meetings - Hamilton talked to Williams in the visiting area of the Santa Rita Jail in Dublin, California, twice over a period of two weeks. Williams told Hamilton that he worried about being portrayed as an “extremist,” and said he should probably not discuss “that incident”—the shooting—because of his pending criminal trial. Williams was loquacious about his political views; he said, “My big thing was the oil rig, the Deepwater Horizon,” referring to the immense BP oil spill in the Gulf of Mexico. “I’ve uncovered enough evidence to—I think in a court of law it could bring [BP CEO] Tony Hayward, Barack Obama, George Soros, and members of Halliburton indicted for treason.” Williams believes that the oil spill was deliberate, plotted by Soros. “It was a sabotage,” Williams explained. “Hayward and [Wall Street financial firm] Goldman Sachs sold their stock, which was depreciating, two weeks before the spill. Soros invested $1 billion of his own money into Petrobras. Soros has the Tides Foundation and the Tides fund. He funnels billions of donated dollars into the fund, which he uses for all kinds of nefarious activities.… Obama sent 2 billion of taxpayer dollars to Petrobras for deep water oil exploration, while holding a moratorium on deepwater exploration in the US. Once you see this pattern—it’s fishy stuff.… Halliburton, whose job was to seal the well—two days before the explosion, they bought an oil spill clean-up company.… When I saw the news was dropping the issue like a hot potato, I became infuriated.” He concluded: “The bottom line is that George Soros is the financier of Obama. And Obama has a clear agenda: First he did the health care reform. After that, it was all about energy. He wants to impose the worst tax ever conceived: a cap-and-trade system on carbon emissions. Think of it. Even your breathing could be taxed, because you give off greenhouse gases. That’s why I did what I did. There are not a lot of people fighting back. I don’t see a response.” Williams evoked the Civil War by asking why Gulf Coast residents did not rise up in arms about what he says was a conspiracy to destroy their shoreline for Soros’s profit. “What ever happened to the spirit of the South, of the Confederacy in the Civil War?” Williams summed up the plot as he sees it: “What I see here is a plan to bring the country down.”
Sources of Information - Asked where he gets his information, Williams responded: “Alex Jones. PrisonPlanet.com is his Web site. Also, DiscoverTheNetworks.” Hamilton identifies Williams’s sources: “Jones is a conspiracist and repeat Fox News guest who mingles dire warnings of the ‘New World Order’ (see September 11, 1990) with stories of government complicity in the 9/11 attacks. DiscoverTheNetworks is a Web site claiming to track ‘the individuals and organizations that make up the left.’ It’s run by David Horowitz, a former leftist who has reinvented himself as a right-wing propagandist.” Williams then named Beck as another major source of his information and said Beck is “like a schoolteacher” who uses his chalkboard to great effect. “I collect information on corruption,” Williams said. “I’ve been at it for some time.… Our media accepts the false reports and downplays the conspiracy theories.… A public that is aware of corruption can oppose the corruption. A public kept in the dark simply passes it by.” Fox News, Williams said, is the only television news outlet that is not “censored,” he said. “So perhaps Fox has broken away from the mold.” Aside from its presumably independent status, Williams added: “There’s only one conservative channel. That’s Fox. All the other ones are all liberal channels.” Williams stated that he watched Fox because of Beck, and not vice versa: “I would have never started watching Fox News if it wasn’t for the fact that Beck was on there. And it was the things that he did, it was the things he exposed that blew my mind. I said, well, nobody does this.” Williams told Hamilton to “go back to June—June of this year, 2010—and look at all his programs from June. And you’ll see he’s been breaking open some of the most hideous corruption. A year ago, I was watching him, and it was OK, he was all right, you know?… But now he’s getting it.” Williams said that he believes Beck knows more than he is willing to tell. Referring to the Gulf Oil spill, Williams said: “This is what he won’t do, Beck will not say it was a contracted hit. But he’ll give you every ounce of evidence you can possibly need to make that assumption yourself.… You see what I mean?… That’s why he downplays the 9/11 truthers. He talks bad about them.” Williams then retold some conspiracy theories that he apparently believes that Beck seems to dismiss, including the Alex Jones-propagated idea that the US government was responsible for the 9/11 attacks. Of his various conspiratorial beliefs, he advised Hamilton: “Think like a conspiracy theorist. Except don’t use the word ‘theory.’ Because the conspiracies are not theories. The official report is the lie; the conspiracy is the truth.” Beck’s mission, Williams said, is to “expose” progressives and “leftists” who are endangering American democracy.
Ties to Tides - Beck is the source from which Williams first learned about the Tides Foundation, which he believes is at the heart of the Soros/Obama plan to destroy America. Beck himself has said of the Tides: “The chalkboard was brought up… for the Tides Foundation. I think that might have been the first time we used it.” His efforts to “expose” Tides “was the first time that I really realized its success—Tides Foundation and ACORN (Association of Community Organizations for Reform Now). Because you can map it all out. And I know that they make fun of me for it, but that’s—that’s the difference.… Tides was one of the hardest things that we ever tried to explain. And everyone told us that we couldn’t. It is the reason why the blackboard really became what the blackboard is. It is because I was trying to explain Tides and how all of this worked.” Beck has repeatedly, and falsely, labeled the organization as “George Soros’ Tides Foundation,” which he has suggested is part of a liberal plot to “create mass organizations to seize power.” Tides, he said, is a “shady organization” that funnels money to “some of the most extreme groups on the left.” Beck has asserted that Tides is “involved in some of the nastiest of the nasty.” In the 18 months preceding Williams’s shooting spree, Beck attacked Tides 29 times on his Fox show. [Media Matters, 10/11/2010]
Entity Tags: Fox News, Tom Funk, David Horowitz, British Petroleum, Barack Obama, Association of Community Organizations for Reform Now, Tides Foundation, Alex Jones, American Civil Liberties Union, Rush Limbaugh, Tony Hayward, Nancy Pelosi, Janice Williams, Halliburton, Inc., Goldman Sachs, Glenn Beck, George Soros, John Hamilton, Petrobras, Media Matters, Michael Savage, Byron Williams
Timeline Tags: US Domestic Terrorism
George Pataki speaking at a Revere America event. [Source: New York Daily News]New York City’s public advocate, Bill de Blasio, is publicly challenging former Governor George E. Pataki for using anonymous contributions to affect elections. De Blasio has managed to persuade several Wall Street firms, including Citibank, Goldman Sachs, JP Morgan Chase, and Morgan Stanley, not to donate money towards political advertising. Now he is criticizing Pataki, who as governor supported disclosure of donors but now, as chair of the political advocacy group Revere America, is using anonymous donations to fund a $1 million advertising campaign against Democrats. In a letter to Pataki, de Blasio writes that it is hypocritical for Pataki to use such donations, saying that “opposing disclosure of your contributors completely contradicts your previous actions and positions as governor of the State of New York.” De Blasio tells a reporter: “I think it’s fair to say Pataki was one of the people doing meaningful work on campaign finance and getting a lot of respect for it. And now, a decade later, he’s in the vanguard of the exact opposite. It’s an extraordinary turnaround.” The letter is also signed by seven members of New York’s Congressional delegation, all Democrats. De Blasio has had no success in persuading any of 16 groups that have spent a combined total of $22 million on campaign advertisements to disclose their donors. Paul Ryan, a lawyer for the Campaign Legal Center, says, “I think it’s entirely appropriate to ask those who are running their organizations to disclose more information.” Pataki says he still believes in disclosure, but says efforts to “boycott, to intimidate, to picket” donors contributing to Revere America have persuaded him to keep their identities secret. Pataki claims not to know which individuals or corporations may be donating to his organization, and says his entire focus is on policy (Revere America opposes health care reform). He calls de Blasio’s letter an “off-putting” act of partisan politics, and mocks de Blasio as “the person who has a job with no responsibilities.” De Blasio’s office indeed has little real power, but de Blasio has used his position as a public official to become a vocal critic of campaign finance practices. He is currently calling on Internet giant Yahoo! to eschew campaign donations, a position the corporation is considering. Ryan notes that the pledges from firms like Yahoo! or Goldman Sachs mean little, as the firms could easily donate anonymously. De Blasio says his efforts are just one part of a much larger struggle. “To me this is the first battle in a long war,” he says. “Before January, in the way of limitations and disclosure, you were fighting a very tense and difficult battle in elections, but the worst you could see from corporate America was conventional weapons. Citizens United (see January 21, 2010) introduced nuclear weapons.” [New York Times, 10/27/2010]
A list of 10 companies that have avoided paying US income taxes is provided by Senator Bernie Sanders (I-VT), who is pushing for legislation that will close the legal tax loopholes that allow large corporations to avoid the bulk of their tax responsibilities. Chicago Sun-Times reporter Lynn Sweet writes, “Some people call the income tax system with generous loopholes for big companies corporate welfare or corporate entitlements.” Sanders’s list, based on returns and Securities and Exchange Commission (SEC) documents filed in 2009 and earlier, includes:
ExxonMobil. The oil giant made $19 billion in profits in 2009, but paid no federal income taxes, and received a $156 million tax rebate.
Bank of America (BoA). The financial corporation made $4.4 billion in profits in 2009, and received nearly $1 trillion in Federal Reserve and Treasury Department “bailout” funds. The bank received a $1.9 billion tax refund.
General Electric. This multinational conglomerate made $26 billion in profits in the US, and over the last five years has received $4.1 billion in tax refunds.
Chevron. The oil giant made $10 billion in profits in 2009, and received a $19 million refund from the IRS.
Boeing. The defense contractor received a $30 billion contract from the US Department of Defense in 2009 to build 179 airborne tankers, and received a $124 million tax refund.
Valero Energy. This energy corporation, the 25th largest company in the US, garnered $68 billion in sales in 2009, and received $157 million in tax refunds. Over the last three years, Valero has received a $134 million tax break from the oil and gas manufacturing tax deduction.
Goldman Sachs. The financial giant paid only 1.1 percent of its income in taxes in 2008, though it recorded $2.3 billion in profits. It also received nearly $800 billion from the Federal Reserve and the Treasury Department.
Citigroup. The financial conglomerate made over $4 billion in profits in 2010, but paid no federal income taxes. It received a $2.5 trillion “bailout” from the Federal Reserve and Treasury.
ConocoPhillips. The oil conglomerate garnered $16 billion in profits from 2007 through 2009, paid no taxes, and received $451 million in tax breaks through the oil and gas manufacturing deduction.
Carnival Cruise Lines. This entertainment giant made over $11 billion in profits between 2006 and 2011, but paid only 1.1 percent of its income in taxes during that period.
In a press release calling for “shared sacrifice,” Sanders writes: “While hard working Americans fill out their income tax returns this tax season, General Electric and other giant profitable corporations are avoiding US taxes altogether.… [T]he wealthiest Americans and most profitable corporations must do their share to help bring down our record-breaking deficit.” Sanders writes that “it is grossly unfair for Congressional Republicans to propose major cuts to Head Start, Pell Grants, the Social Security Administration, nutrition grants for pregnant low-income women, and the Environmental Protection Agency while ignoring the reality that some of the most profitable corporations pay nothing or almost nothing in federal income taxes.” Sanders calls for closing corporate tax loopholes and eliminating the deductions for oil and gas companies. He is also introducing legislation that would impose a 5.4 percent surtax on millionaires that would garner as much as $50 billion a year in tax revenues. Sanders says: “We have a deficit problem. It has to be addressed, but it cannot be addressed on the backs of the sick, the elderly, the poor, young people, the most vulnerable in this country. The wealthiest people and the largest corporations in this country have got to contribute. We’ve got to talk about shared sacrifice.” [Chicago Sun-Times, 3/27/2011]
Entity Tags: Boeing Company, Carnival Cruise Lines, Citigroup, Bernie Sanders, Bank of America, ConocoPhillips, Goldman Sachs, Chevron, Lynn Sweet, Valero Energy Corporation, General Electric, ExxonMobil
Timeline Tags: Global Economic Crises
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