The Treasury Secretary’s Conflict of Interest

When Henry Paulson was nominated to be the new Treasury Secretary in 2006, he held 4.58 million (MILLION) shares in Goldman Sacs. Worth over $700 million. Wonder if he was forced to sell?

Also, Paulson didn’t bail out Goldman Sacs’s competitors (Bear Stearns, Merrill Lynch). Those stocks became worthless. But by having the government buy Goldman Sacs’s junk, their share price is protected.

Again, I wonder how much stock Paulson still holds.

But, massive deregulation of the banking industry was fully implemented by Robert Rubin—Treasury Secretary under Bill Clinton. Rubin successfully struck down the Glass-Steagall Act, a law put in place by FDR’s New Deal so that the Great Depression could never happen again. The Act basically separated commercial and investment banking. That ended in the 1990s.

So, yes, Congress and Treasury Secretary Rubin—also a former CEO of Goldman Sacs–repealed the laws that protected us from unethical banking.

Conflict of interest? F—ing the American people? Yes to both.

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