- Goldman Sachs Group Inc.'s most senior financial-institutions banker, Ken Wilson, is temporarily leaving the firm to advise Treasury Secretary Henry Paulson on how to resolve the country's banking crisis, according to people familiar with the matter.
- The Treasury and Federal Reserve are grappling with how to respond to the threat of bank failures, flagging capital levels and crises of confidence in important institutions such as Fannie Mae and Freddie Mac.
- President George W. Bush made a personal call to Mr. Wilson in recent days, asking him to assist Mr. Paulson.
- Mr. Wilson's appointment is the latest in the ranks of Goldman employees who have moved into public service.
- And it reflects the seriousness of the issues before the Treasury, which is trying to instill public confidence in the financial system without pushing the federal government into a posture of expensive public bailouts.
Long Goldman Sachs in fund; no personal position
2 comments:
http://business.smh.com.au/business/crumbling-foundations-20080718-3hj6.html
snippet:
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Paulson was head of the investment bank Goldman Sachs before he became Treasury Secretary. The former chairman of Fannie Mae, Jim Johnson, was head of Goldman Sach's remuneration committee, where he helped set Paulson's healthy salary.
But the bigger question is: if the Government and taxpayers bail out market players, how do they learn the lessons of mistakes?
President Bush's former economic director Lawrence Lindsey, now a financial consultant, was so incensed by Paulson's intervention that he wrote to clients saying: "Surely things are somewhat amiss when a country's finance minister plays bond salesman for a supposedly privately owned company."
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It's really amazing when you think about it
I believe Steele who just went over to Wachovia is also a goldman guy. He was in treasury.
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