Filibustering GOP still doing Wall Street’s dirty work
The human capacity to rationalize on its own behalf is enormous, as demonstrated by the ethical musings of one “Fabulous Fab” Tourre, the Goldman Sachs trader now at the center of a civil suit filed by the SEC. In an email to his girlfriend on Jan. 27, 2007, Tourre agonized about the impending collapse of the subprime market and the pain it would cause, but quickly tried to banish such thoughts from his mind:
“Anyway, not feeling too guilty about this, the real purpose of my job is to make capital markets more efficient and ultimately provide the U.S. consumer with more efficient ways to leverage and finance himself, so there is a humble, noble and ethical reason for my job
amazing how good I am in convincing myself !!!”
But he wasn’t quite as convinced as he wanted to be. In another email, written just two days later, he confessed:
“When I think that I had some input into the creation of this product (which by the way is a product of pure intellectual masturbation, the type of thing which you invest telling yourself: “Well, what if we created a “thing,” which has no purpose, which is absolutely conceptual and highly theoretical and which nobody knows how to price?”) it sickens the heart to see it shot down in mid-flight…It’s a little like Frankenstein turning against his own inventor
That thing “that has no purpose, which is absolutely conceptual and highly theoretical” was of course synthetic collateralized debt obligations, or CDOs. As Tourre acknowledged, the sole purpose of synthetic CDOs was to facilitate the betting of hundreds of billions of dollars by so-called “investors” who in reality were gambling with the global economy at the Goldman Sachs casino that masqueraded as a bank.
Reading those and other emails, I couldn’t help but think of similar rationalizations by Tourre’s boss at Goldman Sachs, Lloyd Blankfein. In a profile in the Times of London last year, Blankfein described Goldman as “doing God’s work.” And when asked whether it was possible that Wall Street bankers were being paid too much money in ways that distorted the economy, he got downright indignant:
“Is it possible to have too much ambition? Is it possible to be too successful?” Blankfein shoots back. “I don’t want people in this firm to think that they have accomplished as much for themselves as they can and go on vacation. As the guardian of the interests of the shareholders and, by the way, for the purposes of society, I’d like them to continue to do what they are doing. I don’t want to put a cap on their ambition. It’s hard for me to argue for a cap on their compensation.”
Blankfein, Tourre and other Goldman officials are testifying this morning before a Senate investigative committee. (You can watch it here.) That will probably be followed later in the day by another Senate vote on whether to proceed with debate and amendments to a Wall Street reform bill.
Yesterday, every Republican senator in the chamber voted against allowing the bill to proceed, effectively blocking its passage. According to Senate Minority Leader Mitch McConnell, the GOP opposes the bill because it isn’t hard enough on Wall Street, a claim that doesn’t pass the laugh test. Do you honestly believe — and I stress that word “honestly” — that Senate Republicans are waging this fight in order to tighten regulation of Wall Street?
If Republicans truly want to tighten the bill, they ought to allow debate to proceed. They would then have every opportunity to propose and debate amendments in public on the Senate floor and have those amendments voted on, again in public. If Republicans really want to tighten regulation, if Democrats really are trying to pass a sweetheart bill for Wall Street, then the GOP should be eager to have that debate on the Senate floor with the country watching.
But they aren’t. Instead, McConnell and his colleagues want the bill withdrawn back behind closed doors, where deals can be quietly cut and tough provisions can be gutted without anyone hearing the screams. And like Tourre, they have no doubt tried to convince themselves that there are “humble, noble and ethical reasons” for doing so.
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245 comments Add your comment
Normal
April 27th, 2010
3:40 pm
jewcowboy
April 27th, 2010
3:36 pm
SUPER!!! That could be a bumper sticker…
Disgusted
April 27th, 2010
3:40 pm
And BTW, Disgusted, what did Republican support/opposition have to do with anything anyway? In case you forgot, the legislation passed without the necessity of any R votes at all. This is the Democrat’s baby, lock-stock-and-barrel, so own it.
Notice that I said conservatives, Bruno, not Republicans, although the latter were united in their opposition to the HC bill. If not for conservative Democrats like Max Baucus, who is owned by the insurance industry, we would have a single-payer law right now. The only way to get his vote, along with that of Lincoln and other Democratic conservatives, was to provide for a third-party payer.
And that’s precisely why I’m hoping that every Blue Dog Democrat up for reelection gets defeated in November—even if it means a Republican majority. If we’re going to have Republicans masquerading as Democrats, let them take the mask off and run as Republicans. At least then we’ll know who the people’s friends are.
Normal
April 27th, 2010
3:40 pm
Lead story on page three…
md
April 27th, 2010
3:40 pm
Jackie – that quote was by a guy named Obama. At one time, he said there was more to it than just one side rules. But it seems since the shoe is no longer on the other foot, those are no longer his principles.
jewcowboy
April 27th, 2010
3:41 pm
Paul,
“But it makes sense.. so…. odds on it happening?”
McCain was for reinstating Glass-Steagall…
http://www.newsweek.com/id/226938
But, now that he is no longer a “maverick” is he still for it?
Normal
April 27th, 2010
3:44 pm
McCain is like every other politician facing re-election. He’s going to dance a “little sidestep” until after November.
Bruno
April 27th, 2010
3:46 pm
“SUPER!!! That could be a bumper sticker…”
Normal–one of the funniest scenes I ever witnessed was at Mardi Gras in the early 90s. It always attracts a host of “street preachers” who come to convince everyone to straighten up in the name of the Lord (good luck with that). One particularly animated fellow drew a crowd, who supported his sermon by acting out each sin as he called them out. Needless to say, the highlight came when he got around to condemning fornication. Street theater at its finest.
Paul
April 27th, 2010
3:46 pm
jewcowboy
Probably. Rather nice to have a nonmaverick Repub for it, eh?
Back on the hearings: Senator asks a question. Person answers. Senator restates, gets frustrated by the answer. Person says “but that’s not what you asked. What you asked was this.”
Senator: “you guys parse words.”
geesh
Learn how to ask questions….
Jackie
April 27th, 2010
3:47 pm
@md
The quote could be by anyone; it still does not address the issue of majority rule. As I see it, the statement is either incomplete or has no basis in fact.
Democracy calls for a majority to make law, even if the majority is one.
Instead of quoting someone and their opinion, what do you think?
Bosch
April 27th, 2010
3:47 pm
Oh my goodness jewcowboy, I just snorted. I think spandex is a sin too. I’ve never seen anything good come in it. Nothing.
jewcowboy
April 27th, 2010
3:49 pm
If Jesus is smart…he’ll run…
http://www.youtube.com/watch?v=t5pOv1UYGzE
Normal
April 27th, 2010
3:50 pm
Bosch
April 27th, 2010
3:47 pm
Oh I don’t know, Bosch, Spandex once caused me to lose 25 pounds.
jewcowboy
April 27th, 2010
3:51 pm
Bosch,
“I think spandex is a sin too. I’ve never seen anything good come in it. Nothing.”
Then get ready…
http://www.youtube.com/watch?v=i8WoyPEVRFo
and,
http://www.youtube.com/watch?v=ddFBX9hwaOM
Kamchak
April 27th, 2010
3:52 pm
This is a brilliantly profane exchange in the Goldman Sachs hearing. Carl Levin confronted Goldman Sachs trader Daniel Sparks with an email about “Timberwolf,” one of their deals using mortgage-backed securities. Tom Montag, the head of the division at the time, told Sparks, “That Timberwolf was one sh–ty deal.” Days later, Levin showed, emails talked about selling Timberwolf, the “sh–ty deal,” as a top priority. In fact, Goldman sold hundreds of millions of dollars on the deal to investors after that initial email.
In a made-for-Jon-Stewart moment, Levin asked again and again about the “sh–ty deal,” and Sparks tried to dodge, but the conclusion was clear – Goldman Sachs knew Timberwolf was bad, and yet not only marketed it to investors, but marketed it as a top priority.
Keep up the good fight!
April 27th, 2010
3:53 pm
Tax the bottom 1%…that will balance the budget! And kids…why should their measly allowances be tax free….tax it….Tooth fairy proceeds…tax it! Rich people…no more taxes because they “produce” for their mansions and yachts and they hire the minions at minimum wage and spend more money to lobby for lower taxes and lower minimum wage.
Tea…let’s raise the taxes on tea…..
59% of Americans want more government regulation over credit cards and financial matters…. why are the Republicans shoving inaction down our throats? This is tyranny! Patriots, take back our country from the Republicans!
Bruno
April 27th, 2010
3:53 pm
“I’ve never seen anything good come in it. Nothing.”
http://www.youtube.com/watch?v=jNxrHS2WYGE&feature=related
Later, guys and gals.
Bosch
April 27th, 2010
3:54 pm
jewcowboy,
Dang! That made my toes curl up in my shoes! Like they do every time I see a clown. And to be honest, I like my toe curls to come in another form, thank you! And again, my therapist bill will be soon forthcoming.
Normal and jewcowboy,
Not sure if you saw this the other day, but I saw a funny bumper sticker the other day that read, “Come Rapture, can I have your car?” I almost hit the car trying to read it and then laughing. It’s always been my belief that those “In case of rapture car will be unmanned” folks should have their licenses revoked – they are a hazard to the rest of us.
TaxPayer
April 27th, 2010
3:55 pm
Now, at the other end of the spectrum:
“You are an absolute dumbass. Why don’t you try to stay on topic instead of trying to change another’s topic and then falling on your face when you are called on it. Go suck an… egg.”
Which was prompted by:
Bruno
April 27th, 2010
2:11 pm
“Of course, if you want to talk about taxes that real people pay, that’s fine. We could start with these folks.”
Your 2:03 proves once again why it is a complete waste of time to attempt debate with you. Rather than addressing the crux of my post, that ultimately the wealthy pay virtually all of the taxes in this country and whether those taxes are paid under the guise of a corporation or as an individual makes no difference in the end, you snipe along the edges.
I accept your surrender. Now you can go back to masturbating over your global warming site.
Try to keep up.
Bosch
April 27th, 2010
3:56 pm
jewcowboy and Bruno –
Two words. Not cool.
I was still recovering and that was just hurtful.
@@
April 27th, 2010
4:00 pm
Money and Votes Aligned in Congress’s Last Debate Over Bank Regulation
http://www.opensecrets.org/img/blog/bankchart_20080924.gif
Don’t see much difference between the two ‘cept the dems got a smidge more than the reps.
Go for THE RAMS too.
Rightwing Troll
April 27th, 2010
4:00 pm
“The same with deficit spending. Republicans can snipe about it to win elections and do not really have to anything about it other than attend tea parties, but return Republicans to the majority and see how much federal spending they cut…how willing are they to cut part of $1T in defense spending?”
What uh… whatever happened to the inevitable collapse of Social Security and they Republican “promise” to fix it in 2000 and 2004?
jewcowboy
April 27th, 2010
4:02 pm
Bosch,
“When everyone is looking my buffet starts cooking”
Honestly, whenever I hear the word “rapture” this pops up…
http://www.youtube.com/watch?v=UWRL9NLQqP8
Then everything else I hear is coated in Blondie making everything better…
jewcowboy
April 27th, 2010
4:06 pm
I think Bruno’s post at 3.53 damaged something inside of me emotionally…
Bosch
April 27th, 2010
4:09 pm
jewcowboy @ 4:06 – my eyes are still burning. I too feel the emotional scar that will never fade.
Pogo
April 27th, 2010
4:10 pm
After reading this piece by Jay and reading some of the more naive comments about how only the Republicans are beholding to big money interests (including banking), I have come to the following conclusion; to be a modern liberal/progressive you must totally throw any semblance of reality out of the window and you must choose to live in some kind of weird never-never land wherein you only believe that which you agree with and since that is what you believe, it must be real. I mean, its not like the Dims are not out there wining and dining with big money. Read the papers for God’s sake (I mean the other papers, not this one but the ones that tell of events such as Reids little fund raising adventure in New York this week)! Harry is sitting down with the big boys for big bucks. I wonder what they expect in return?
Jay, your credibility lessens with every one-sided piece of make believe you put out. You must surely know the boys and girls on your “side” are just as bought out. Also, does anyone here even understand what this “banking legislation” involves? If you don’t, then how can you comment on it? I understand a bit and it looks like it will do nothing but ensure that the banks will always have the government to help them, no matter what they do. In exchange, the government will garner more control over the financial sector thus driving another stake into the capitalism that has made this country even last as long as it has. Look to Europe (Portugal and Greece) right now to see our future if this continues.
md
April 27th, 2010
4:11 pm
“Instead of quoting someone and their opinion, what do you think?”
I believe neither party represents all americans, yet both implement their agendas as if they do. I believe the country is 1/3,1/3,1/3, yet have only two viable choices, which leaves a large segment unrepresented, and that is why I believe in balanced gov’t vs one sided gov’t. Compromise is the answer vs continually going from left to right to left to right to…………
josef nix
April 27th, 2010
4:13 pm
I see folks around are in a good mood this p.m.
On the thread: nothing will come of this of any substance, but in the meantime it does make for good theatre.
A bit of a downer, but has anybody besides my fifth graders actuall read the Arizona immigration bill…chilling, folks, chilling to the bone…
Bosch
April 27th, 2010
4:16 pm
“I have come to the following conclusion; to be a modern conservative (except the Senate Goddess) you must totally throw any semblance of reality out of the window and you must choose to live in some kind of weird never-never land wherein you only believe that which you agree with and since that is what you believe, it must be real.
There, Pogo, fixed that typo.
~~~~~~~~~~~~~
Seriously dude, it goes both ways.
josef nix
April 27th, 2010
4:16 pm
md
In re your 4:11–what I may think/believe/subscribe to personally and what I think is in the best interest of my country are not always the same thing. Too many of our politicians can’t seem to understand that about themselves.
jewcowboy
April 27th, 2010
4:17 pm
josef nix,
“chilling to the bone…”
5th graders reading immigration bills…yes…very chilling
jewcowboy
April 27th, 2010
4:19 pm
Bosch,
“Seriously dude, it goes both ways.”
Just like a Republican Senator in a stall at the Minneapolis-St. Paul International Airport…
Jackie
April 27th, 2010
4:21 pm
@md
Good job at conflation,
What you do think the US Constitution calls for relative to the passage of bills in the House and Senate and the signature by the President?
Is a simple majority the requirement for passage of a bill and the signature by the President to pass it.
Paul
April 27th, 2010
4:22 pm
What’s the difference between Congress and josef’s class of fifth graders?
The fifth graders read the bills!
josef nix
April 27th, 2010
4:27 pm
jewcowboy–
They asked about it and I sent them to the computer. They pulled up the bill and we had a lesson in how to read such a bill…the lesson was to get them to understand the words of the law, look at how it would be enforced and then to try to draw conclusions on how it would affect them…I’ll say this for the little b*ggers, they asked some really interesting questions:
“So, Mr. Nix, if somebody heard you speaking Spanish with us and asked you for identification and you didn’t have it with you that means you could be arrested?”
“If you give your neighbor a ride to work and get stopped and he’s illegal, you can be arrested and they can take your car?”
josef nix
April 27th, 2010
4:28 pm
PAUL
This one was only 17 pages, though! They couldn’t even pick up the Health Care one!
josef nix
April 27th, 2010
4:33 pm
PAUL
I’ve got one little genius whose parents were both lawyers in Mexico. When I asked them to say what the bill meant to the people in Arizona, he quipped, “pack you bags and leave Arizona if you’re brown.” His mouth to G-d’s ears! He was born here. His parents are legal. He’s one of tomorrow’s leaders of the Latino community…something to think about…
Paul
April 27th, 2010
4:35 pm
josef nix
Those broad brushes cover a lot of canvas –
The Hearings:
“One thing I am sure of, Congress doesn’t have the expertise to draft this bill.’
Sen Ensign
Pogo
April 27th, 2010
4:36 pm
Greece is a fine example of where socialism, unions and nationalization will get you. Look at the worlds stock markets today. They tanked because of this little countrys internal social and economic policies. They are now officially broke and no-one wants to help. The sad truth is that due to the deficit we (as in the United States) have already created are already much worse off than Greece and it is only getting worse under Obama and the progressives in congress. Historically, progressives (like Obama) want three things; (1) they want action, no matter the consequences (2) they want to spend towards utopia, no matter if we can afford it or not (3)they want taxes on the rich, disregarding the reality that there are not enough rich to pay for their spending. At some point they always lower the threshold for the defintion of what being “rich” really is and eventually paying for their excessive spending intrudes into the middle class. Everyone loses.
I also agree that in recent history the republicans have spent money like madmen in their pursuit to be progressive. W was nothing if not a progressive. It is kind of ironic when you consider that the left spent so much time vilifying Bush but in reality, economically speaking, he was one of their own.
Shawny
April 27th, 2010
4:40 pm
Fab Fab sounds like he could be another fine appointment by Obama.
And by the way, only the party with a large majority are “offended” by the filibuster. When it turns around, the filibuster will suddenly become patriotic.
josef nix
April 27th, 2010
4:42 pm
Immigrating upstairs…
Pogo
April 27th, 2010
4:47 pm
Thanks Bosch. You can rest easy knowing your alternative universe, un-anchored in reality still exists!
Bosch
April 27th, 2010
4:51 pm
Pogo,
“You can rest easy knowing your alternative universe, un-anchored in reality still exists!”
My alternative universe is way fab cool.
Kamchak
April 27th, 2010
5:12 pm
Greece is a fine example of where socialism, unions and nationalization will get you.
Nope–they copied us.
As in the American subprime crisis and the implosion of the American International Group, financial derivatives played a role in the run-up of Greek debt. Instruments developed by Goldman Sachs, JPMorgan Chase and a wide range of other banks enabled politicians to mask additional borrowing in Greece, Italy and possibly elsewhere.
In dozens of deals across the Continent, banks provided cash upfront in return for government payments in the future, with those liabilities then left off the books. Greece, for example, traded away the rights to airport fees and lottery proceeds in years to come.
IC Atlanta
April 27th, 2010
7:44 pm
When will Obama return his $1million to Goldman. How much did Schumer get from Wall Street? What was Chris Dodd’s involvement – how did he get special favors from bankrupt Countrywide? Seriously Jay are you unable to criticize any Democrat? You lose credibility when you cannot be intellectually honest.
Filibustering GOP still doing Wall Street’s dirty work | goodne.ws
April 27th, 2010
10:17 pm
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