warrenbuffettthinksyouareamoron.jpgThe Oracle of Omaha. He’s not just good for marrying folksy business wisdom with aberrant sex fetish. He can also be counted on to bring up the pink elephant in the room (it helps if said elephant has huge cans) when no one else will. According to Andrew Ross Sorkin’s new book on the weeks following Lehman biting the big one, everybody was ready to sign off on a merger between Goldman and Wachovia until Buffett knocked his cane against some foreheads while asking, “Who does Hank Paulson work for? Think, McFly, think!”

Sorkin reports that the deal, which was nearly consummated, would have merged Goldman Sachs and Wachovia. Henry M. Paulson, the Treasury secretary and former C.E.O. of Goldman, was deeply involved in the process, contacting both Lloyd Blankfein, Goldman’s current C.E.O., and a Wachovia board member, and strongly urged both to consider it. Wachovia’s C.E.O., Robert Steel, was a former vice-chairman at Goldman Sachs and Paulson’s former number two at the Treasury Department.
Sorkin reports that Warren Buffett was also contacted about investing in the merged company, but told a banker at Goldman that it would never happen. “By tonight the government will realize they can’t provide capital to a deal that’s being done by the former firm of the Treasury secretary with the company of a former vice-chairman of Goldman Sachs and former deputy Treasury secretary,” Buffett said.

“There is no way. They’ll all wake up and realize, even if it was the best deal in the world, they can’t do it.”

Comments (25)

  1. Posted by guest | September 30, 2009 at 11:45 AM

    I knew it!!
    -matt taibbi

  2. Posted by guest | September 30, 2009 at 11:49 AM

    Hmmm… Should I buy CG’s book or Sorkin’s?

  3. Posted by InTheBuff | September 30, 2009 at 11:50 AM

    “She looks so legal in that pic”

  4. Posted by guest | September 30, 2009 at 11:52 AM

    hank paulson and everyone who has ever worked for goldman sachs is a criminal.
    co-signed,
    matt taibbi and zero hedge

  5. Posted by guest | September 30, 2009 at 11:55 AM

    he’s not good, however, for checking voicemail.

  6. Posted by Seaman Bodine II | September 30, 2009 at 11:58 AM

    “in your race for power and glory, you forgot one minor detail…”
    “we forgot to hook up the doll!”

  7. Posted by guest | September 30, 2009 at 12:01 PM

    He looks frustrated in that picture, like the kid at Dairy Queen fucked up his order for the second time.

  8. Posted by guest | September 30, 2009 at 12:04 PM

    Hank Paulson then demanded that Citigroup sell itself to Playboy for $1, but failed after Vikram demanded that he have a room in the Mansion.
    Hank Paulson then demanded that Morgan Stanley sell itself to Target for $1, but failed after Bill Ackman said he was too busy penning his quarterly letter to do diligence.

  9. Posted by guest | September 30, 2009 at 12:04 PM

    @2 yeah bad luck for Chaz, his book coming out between those of the journalistic giants Faber and Sorkin. But this is what happens when you’re from Rego Park.

  10. Posted by guest | September 30, 2009 at 12:06 PM

    @6 Wow, semen guy. You really are old.

  11. Posted by guest | September 30, 2009 at 12:08 PM

    @2
    Well I’m thinking CG’s gonna win the Pulitzer and Nobel, and ARS’ book is gonna go the way of many books in Nazi Germany, so CG’s is probably the better pick.

  12. Posted by EvilBuzzard | September 30, 2009 at 12:16 PM

    >>>>“By tonight the government will realize they can’t provide capital to a deal that’s being done by the former firm of the Treasury secretary with the company of a former vice-chairman of Goldman Sachs and former deputy Treasury secretary,” Buffett said.

  13. Posted by guest | September 30, 2009 at 12:16 PM

    Bodine, you so silly.

  14. Posted by guest | September 30, 2009 at 12:18 PM

    @11/Charlie
    Touting your book here anonymously is one thing, but trashing ARShole’s is another.

  15. Posted by guest | September 30, 2009 at 12:39 PM

    You thought someone named “Seaman Bodine” was a 15-year-old /b/tard?

  16. Posted by Seaman Bodine II | September 30, 2009 at 12:39 PM

    @10
    does my wisdom give away my seniority?

  17. Posted by guest | September 30, 2009 at 12:48 PM

    Ohhhh @SB II- were you the one that made that Gravity’s Rainbow reference a while back? It’s all coming together now.

  18. Posted by highlyconfident | September 30, 2009 at 12:49 PM

    Every time I need a lift I run my fingers over the cover of CG’s book and open it to a random chapter. After reading a paragraph or two I immediately feel my muscles swell like I just shot Deca in my ass. I go to the gym and wail on my pecs until my shirt rips from the stress of knowing it can’t handle the beast that rests beneath its cloth. Thank God there are still some true journalists still out there.
    -Charles “The Great Chazza” Gasparino

  19. Posted by Joe Mac | September 30, 2009 at 12:54 PM

    @Confident-
    That’s not Deca getting shot into his ass.
    Regards,
    Stan

  20. Posted by Joe Mac | September 30, 2009 at 12:57 PM

    @Confident-
    That’s not Deca getting shot into his ass.
    Regards,
    Stan

  21. Posted by Anal_yst | September 30, 2009 at 1:25 PM

    @ SB II
    Ah, images of Kelly LeBrock are helping me through my day now, gracias

  22. Posted by guest | September 30, 2009 at 3:41 PM

    @21, only if you are working from memories; there has been significant depreciation since WS

  23. Posted by guest | September 30, 2009 at 3:42 PM

    I’m calling BS, Sorkin makes up half the shit he writes about. Buffett never turns down dippin his deez in the juice, and would have gotten wet if there was upside. The deal didn’t go down becaue Whackovia ended up being “a dog with fleas.” Goldman doesn’t buy shit with fleas…

  24. Posted by guest | September 30, 2009 at 3:53 PM

    @23 O RLY?
    -dick fuld

  25. Posted by buffettjr | October 1, 2009 at 1:46 AM

    one thing that makes buffett a good investor is that he also understands the politics behind the economics. I’d say he can better navigate this type of political environment better than most classical ‘investors’.
    Here are some books recommended by warren buffett if you are interested in seeing what books he and charlie munger like…

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