You will recall, no doubt, our puzzlement at the recent payment by Goldman to make “go-away” with this subprime business (in Massachusetts anyhow). We are even more puzzled now that Bloomberg is reporting how little Massachusetts Attorney General Martha Coakley had on Goldman:
The big news from Goldman and Massachusetts Attorney General Martha Coakley this week was a $60 million settlement, under which the investment bank resolved her office’s investigation into its packaging of mortgage securities backed by subprime home loans. Per the usual custom in such accords, Goldman didn’t admit any wrongdoing.
The odd part is that Coakley’s office didn’t accuse Goldman of any wrongdoing, either. It filed no lawsuit. And it made no allegations that Goldman had violated any statutes or rules.
Why did Goldman pay if Coakley’s investigators couldn’t identify any infractions to allege? That’s a mystery. The only statement I could squeeze out of Goldman was a one-liner from a P.R. man, Michael DuVally. “Goldman Sachs is pleased to have resolved this matter,” he said. I’ll bet it is.
The closest thing to an accusation Coakley could muster during a May 11 press conference was that Goldman “had played a role” in predatory lending in the state. Then again, so did a lot of other companies. By that standard, even local newspapers that printed the lenders’ ads might be in trouble.
Let’s just see here. Tax revenues crashing. Romneycare. Big social service infrastructure.
Now introduce Lloyd:
“Hey Martha! Got a deal for ya. You give us a waiver for any and all prosecutions arising out of this subprime business, really just a piece of paper, and I’ll give you a check for $60 million. Whatcha think?”
Sold!
Who do you think got the better end of this trade?
Goldman Pays Greenmail to Make Snoops Go Away [Bloomberg]
perviynah
Baaaa.
Who do you think has more information on this issue? Goldman.
my thoughts exactly, before i even read your analysis. paying a “settlement” here is just codeword for yet another sneaky, legal but ethically questionable way of buying a public official.
Romneycare isn’t costing the Commonwealth anything. They just made it a law that everyone needs to buy health insurance, and they exempt poor people if they can’t afford it. All it succeeds in doing is making everyone’s tax returns more complicated, and the government doesn’t buy anyone healthcare who didn’t already qualify for Masshealth.
that’s his o face.
“Romneycare isn’t costing the Commonwealth anything. They just made it a law that everyone needs to buy health insurance, and they exempt poor people if they can’t afford it.”
Heh heh heh. Good one.
I once drove through Massachusetts on my way to a NASCAR rally/Klan meeting/Buttrick family reunion in Alpharetta — tell me, number 4, who does pay for Masshealth and all them rectal exams for poor people in that thar Commonwealth place?
wait till Capitol Hill decides they basically used $60MM in taxpayer dollars since they have TARP $$.
@4, people who didn’t qualify for Masshealth still are required to have insurance and they have a different subsidy scale for Commonwealth Care (Romneycare)…So a lot more people have subsidized health care now,plus there are tons of admin costs…
I totally support it in lieu of the lack of anything else in other states,but it does have its costs.
60M is chunk change after Blankfein stole 12B+ from taxpayers via AIG. Nice deal government sachs got from fed and treasury.
10,
Oh, yes. Yes, they (GS) stole it.
Do you know how good it feels to steal? In 1996, I was involved in a fender-bender, and was compensated (see: stole) through my insurance agency.
Take back the night, people!
@10. you forgot to mention the part where gs and its ceo celebrated by drinking the blood of christian babies afterwards. get off it already with the bullshit conspiracy crap if you still fail to understand what really happened. so sick of this nonsense, seriously….
blankfein is between the hammer and the anvil–if he flips off the commonwealth, he’s the bad guy who doesn’t care about the little guy, the poor innocent mortgage owners who got us and the economy into this mess, who’s stolen taxpayer money (see morons like @10) and now doesn’t want to help those who’re hurting. if he just hands over the money to avoid seeing the company’s name dragged through more mud, then he comes off as a wimp AND still manages to garner comments about government sachs, paying off and buying public officials, running the worlds, engaging in ritualistic human sacrifice, etc, etc….
it’s hard out there for a pimp….
@7 4 here. Driving through from New Hampshire, are you? Goldman pays for Masshealth now, obviously.
Under what law was the MA Attorney General allowed to accept the money? Something is missing in this story.
Also, the bulk of the money is going directly to residents of the state ($50 million), leaving just $10 million to the MA general fund (to fund purported social programs that EP detests).
Leave GS alone. I am telling you.
Just to be clear, Bloomberg is not “reporting” this. It’s a commentary by Jonathan Weil. It’s an opinion piece, the same as a David Brooks column in the Times, for instance.