The now famous Rolling Stone magazine article in 2009 by Matt Taibbi unforgettably referred to Goldman Sachs, the world’s most powerful investment bank, as a “great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”
Now, yet another Goldman Sachs high roller has slipped into the US Department of the Treasury. According to a recent article by Nomi Prins, an acclaimed author and notable banker-president historian, “Mnuchin has already made clear his intent to demolish the Dodd-Frank financial regulatory reforms passed in the wake of the 2008 crisis. He has no interest in the reinstatement of Glass-Steagall”.
Zerohedge recently posted an article elaborating on Mnuchin and his lucky timing.
The former Goldman Sachs banker nominated to become Donald Trump’s treasury secretary had the perspicacity to purchase a collapsed subprime mortgage lender soon after the financial crisis, getting a sweet deal from the Federal Deposit Insurance Corporation. Now, if he’s confirmed, he will likely be able to take advantage of a tax perk given to government officials.
Mnuchin was born into a family of Wall Street royalty. His father was an investment banker at Goldman Sachs for 30 years, serving in top management. He and his brother landed at the powerful firm, too. After making millions in mortgage trading, Mnuchin struck out on his own, creating a hedge fund and building a record of smart and well-timed investment moves.
He dodged disaster when he inherited his mother’s portfolio. She was a longtime investor with Bernie Madoff, the largest Ponzi schemer in American history. After she died in early 2005, Mnuchin and his brother quickly liquidated her investments, making $3.2 million. The Madoff trustee, Irving Picard, sued to retrieve the money from the Mnuchins, as he did from other Ponzi scheme winners, contending that they were fake gains. A court ruled that Picard could only claw back money from those who had cashed out within two years before the collapse. The Mnuchins, having pulled out roughly three years before, got to keep their Madoff money. That something was dodgy about Madoff was an open secret on Wall Street.
Taibbi was describing Goldman’s role in the 2008 financial crisis and the speculative bubble of mortgage-backed securities assets which later came crashing down. What will happen from here is anyone’s guess but my bet is that there is another swindle being planned.