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Interesting Reading: Paulson's '06 Ethics Agreement And '08 Goldman Waiver

Earlier today we told you about the near-constant phone contact between then-Treasury Secretary Henry Paulson and his successor as Goldman Sachs CEO, Lloyd Blankfein, during the height of the financial crisis last September.

Now, we've obtained from the Treasury Department Paulson's ethics agreement, in which he pledged not to participate in matters involving Goldman Sachs, and the waiver to that agreement granted by White House counsel Fred Fielding. You can read the agreement here and the waiver here.

Of the dozens of phone calls between Paulson and Blankfein, 26 occurred before Paulson requested and obtained a waiver to deal with matters relating to Goldman Sachs, the New York Times reported Sunday. The content of the calls is unknown. But two were the morning of Sept. 17, a day after the AIG bailout, which ultimately handed Goldman $13 billion of taxpayers' money -- before Paulson obtained the ethics waiver.

In Paulson's ethics agreement, written after President Bush plucked him from Goldman to be Treasury Secretary, all but two of eight pages mention Goldman. He concludes it by saying "these steps will ensure that I avoid even the appearance of a conflict of interest."

Paulson pledged: "As a prudential matter, I will not participate in any particular matter involving specific parties in which The Goldman Sachs Group, Inc. ("Goldman Sachs") is or represents a party for the duration of my tenure as Secretary of the Treasury, unless my participation is in accordance with 5 CFR 2635.502(d)."

(That section of the federal code allows for exemptions to be granted under certain circumstances.)

The ethics waiver of September 17, 2008, signed by White House counsel Fred Fielding, allowed Paulson to participate in matters relating to Goldman. Fielding concludes -- "prudential matters" apparently aside -- that Paulson's interest in the Goldman pension plan "is not so substantial as to be likely to affect the integrity of your services to the Government."

Paulson pledged in his ethics agreement: "I will not participate in any particular matter that directly and predictably affects Goldman Sachs' ability or willingness to pay its obligations under the Pension Plan to me, unless I first obtain a waiver or a regulatory exemption applies."

While selling his stock in Goldman, Paulson kept his Goldman pension benefits when he became Treasury Secretary.

The Times reported that Paulson "specifically said that he would avoid any substantive interaction with Goldman executives for his entire term unless he first obtained an ethics waiver," but it's not clear when or where this promise was made.


10 Comments

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Nothing on TPM about Sibel Edmonds' testimony?

Interesting lack of coverage, even from the blogs.

http://www.bradblog.com/

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Despite some missing coverage, this is actually really interesting, and I am glad it is being discussed at all. Nevertheless, I am very skeptical whether anything will come of this other than people becoming superficially angry with Goldman Sachs while not doing anything to actually address the underlying problems.

http://www.enewse.com

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Paulson and ethics....he cannot even spell the word much less live by any. Why do you think he went to the hill with 3 pages and no one could challenge him or ammend anything.

I want a Special Prosecutor to look into this clown. He's another Madoff--the only difference it was the taxpayers of the US vs. Goldman Sachs. Paulson grabbed a half billion dollars on his way out the door of Goldman when he accepted the Treasury Secretary job. Blind trust....my ass.

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Haven't seen a peep anywhere about Sibel's testimony except on BradBlog. Funny how the "liberal" media is all over this, what with the non-stop coverage of faux patriotism when General Betrayus was a non-issue.

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There's a diary over at The Seminal/Firedoglake.
Authored by Larue.

The silence is deafening considering the explosive testimony given by Edmonds.

Also Democratic Underground has some threads.
Also, the site At Largely by Larisa Alexandrovna.

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Paulson is a Wall Street crook...and will get away with it because not only is the Congress owned by Wall Street..so is the U.S. and the "Global Economy".............

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One veritably reels with these glimpses into the monumental corruption in our government, particularly in light of the immense burden it tossed to the taxpayer in the bank industry bailout.
All of this money thrown at the fat cats while we wring our hands about where to get the cash to provide basic medical coverage for...oh, yeah, taxpayers.
Paulson and treasury jammed this through with no oversight, in weeks. Jesus.

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Someone offer me a billion dollars and I will show you some ethics. Come on, anyone, just offer me a billion dollars.

Seriously, does anyone really think that there is a human being anywhere on earth who would turn down an offer of a billion dollars in return for his soul? If there is such a person or persons, send them to me - I have several nice bridges for sale.

Some day people will accept that the government we have is utterly corrupt.

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hoppy - how about there are some corrupt people in government instead of "the government we have is utterly corrupt."

I'm coming from having listened this morn to Pennsylvanians screaming their opposition to any proposed health-care reform involving the government. That opposition is based on their intense hatred and distrust of government.

Reagan planted the hate-government seed in the '80's and it's grown into a huge, highly poisonous plant. I'd argue that it has influenced how we vote, or don't vote, to today's strong opposition to any health care reform that might involve government.

For years now the hatred and distrust, in general, has become a pernicious impediment to progressive reform of all sorts and a first step toward removing the impediment may be to get rid of the "government we have is utterly corrupt" talk.

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This really shouldn't be a surprise. It was in clear view, Goldman was running the show.

Remember when Hank Paulson brought on Goldman Sachs banker Ken Wilson to advise him in mid 2008? The Ken Wilson, Chairman of Goldman Sachs' Financial Institutions practice?

Ken Wilson, who basically ran the whole damn show?

Ken Wilson, who brokered the Bank of America and Countrywide takeover.

Ken Wilson, who was only "on loan" to Treasury from Goldman.

Really, is anyone surprised.

In case you missed the many articles about Ken Wilson when was all going down:

http://blogs.wsj.com/deals/2008/07/21/ken-wilson-the-goldman-sachs-man-behind-your-bailouts/

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