Connecticut Democrat Chris Dodd has realized one thing, the NY Times still runs the agenda for his party.
Dodd, realizing 99% of American's not only do not know who he is but also do not know he is running for President, found a way to get himself some publicity today. He decided to question the integrity of someone most American's do know: Treasury Secretary Hank Paulson. On a side note, if more folks know who the head guy at Treasury is than know who you are, and you are running for President, stop, you are now officially wasting all our time.
Dodd said he was concerned because it appeared that Goldman Sachs (GS) was "aggressively pushing subprime mortgages that they knew to be of concern while simultaneously shorting collateralized mortgage obligations." Maybe they were. If they were, so what? They are after all a brokerage that has a massive trading operation. Is Dodd suggesting investment houses can only take long positions?
Another thing Chris. Goldman did not sell mortgages. They financed them and that is a huge difference. Goldman has also taken large writedowns on its CDO portfolio, they just hegded against that better than the other institutions.
Dodd said Paulson should "address the concerns" raised by the New York Times article and added a warning: "Failure to do so may be cause for a formal investigation." Once again, the NY Times telling Democrats what is important and them following like a dog to a burger.
How about this. I would love to hear Paulson address him like this at the upcoming dog and pony show. Chris, let me explain things to you. You clearly have no idea how the real world works and we both know the only reason you are sitting there is because of your late father U.S. Senator Thomas Joseph Dodd. Without him we both know you probably would be asking me if I wanted to "super-size that for only one more dollar" rather than wasting everyones time on this subject.
That being said, you and the group of trained chimps you sit with pass laws on the sale securities. We follow those rules and oh yea, we also have a trading operation that takes all types of positions on all types of securities in almost every country in the world. As a matter of fact, more than 50% of the profits at Goldman profits come from overseas (that means countries outside the US).
You see Chris, almost every bank out there bought and sold these securities (including us) and most hedged these bets. Citigroup (C), Bank of America (BAC), Wachovia (WB), Morgan Stanley (MS) etc.. they all did it. The difference is we just did it better. They got greedy and we bet against the grain. Pretty simple really.
Now that we are on the subject, maybe you could help us out. Could you try to win the election? We just ask because the tax increase you are promising will definitely drive the economy into recession and we could really make a killing off these short positions then. Just a thought...
On a side note, speaking of possible "ethical issues" . We know you received more money from Arthur Andersen than any other Democrat — $54,843.00 — and aggressively worked to insulate Arthur Andersen and other accounting firms from liability to defrauded investors in cases like Enron. Now that Anderson is gone, where do you get your $$ from now?
Perhaps this is just payback for Goldman Chief Blankenfeld supporting Hillary for President? That is the only thing that actually would make any sense.