State of New Jersey Paying $1 Million to Goldman Sachs for Redeemed Bonds

Editor's note: While I'm sure New Jersey is not in what one might call a "unique" situation, it certainly begs the question: what was New Jersey thinking?! Goldman Sachs argues that because it is so large, it's impossible for GS goons not to populate every arm of government and finance. Sure, ok, I buy that. - JDA


Remember when this used to be called illegal?

Bloomberg:

New Jersey taxpayers are sending almost $1 million a month to a partnership run by Goldman Sachs Group Inc. for protection against rising interest costs on bonds that the state redeemed more than a year ago.

The most-densely populated U.S. state is making the payments under an agreement made during the administration of former Governor James E. McGreevey in 2003, when New Jersey’s Transportation Trust Fund Authority sold $345 million in auction-rate bonds whose yields fluctuated with short-term interest costs. The agency finances road and rail projects.

The funniest part is the following:

John McCormac, the Mayor of Woodbridge, N.J., state treasurer at the time of the 2003 deal, declined to discuss the issue in a telephone conversation today. “I have no recollection of anything,” he said. “Ask the treasurer.”

I'm sure Goldman has no idea what you are talking about either. And actually I take that back, McCormac's thoughts aren't the funniest part, the funniest part is that an ex Goldman chairman pimped out his own state as financial slave to the Goldman parasite.


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