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According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage".[1] In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain
*As defined in Wikipedia

Thursday, August 19, 2010

UPDATE: The Revolving Door Between Goldman Sachs and the Obama Administration

Editor's Note: Thanks to a reader who left this link in his comment to the previous  post.  You can view the original post in FDL by clicking the title below.  Thank you also to Fflambeau for putting this research together and publishing it for all to see.  It is something all Americans must see.

While it may seem impossible to many Americans that somehow a firm like Goldman Sachs can actually have internal influence in our everyday government - the truth is they do and have.  This "revolving door" is a pattern that has been around for quite some time.  What we never knew and still don't know is exactly how much influence and "power" do these people coming from Goldman Sachs really have.  What are their connections to organizations like the Bilderberg's who meet openly but in secret?  And the biggest question of all is how much control do the "real" owners of our Federal Reserve have over our government and what are their ties to Goldman Sachs?  

What we have here is a possible conspiracy theory that has floated around for years but never has been able to be proven true or false.  One reason being that no one can get inside our Federal Reserve to get an open transparent look at them.  No one has been able to EVER determine who the "true" owners of the Federal Reserve are.  Oh, it is said that the Fed is owned by a consortium of banks.  A partially true statement perhaps - but which ones?  No one has ever been able to prove and the Fed has NEVER disclosed the true ownership.

I believe it is important that we learn this information.  After all, is not our Republic a free and open society?  If it is then information like this must be forthcoming to the public.  Rep. Ron Paul (R -TX) has been lobbying Congress for an audit of the Fed and he is gaining support but not enough to actually gain access.  It is amazing to me that the very agency private company that controls each and every dollar we have, can print more on demand but has no oversight from the people can remain this mysterious.  It then begs the question of Goldman Sachs, another private company, as to how much power and control it truly has with no oversight of the people.  Has GS become a quasi government agency such as the Fed?

Official presidential portrait of Barack Obama...Here now, the update to the list of Goldmanites with ties to the current administration.

An Updated List of Goldman Sachs Ties to the Obama Government Including Elena Kagan

By: fflambeau Saturday May 8, 2010
I. Introduction.
This essay shows the pervasive influence of Goldman Sachs and its units (like the Goldman-Robert Rubin-funded Hamilton Project embedded in the Brookings Institution) in the Obama government. These names are in addition to those compiled on an older such list and published here at FDL. In the future, I will combine the names here and those on the earlier article but I urge readers to look at the earlier list too (links below). Combined, this is the largest and most comprehensive list of such ties yet published.

For readability and clarity, I have NOT included many of the details and links that are found in the earlier article so as to make this one less repetitive and easier to read. So, if you want more documentation, please look at my earlier diary here at Firedoglake called "A List of Goldman Sachs People in the Obama Government: Names Attached To The Giant Squid’s Tentacles" published on April 27, 2010.

Note too that I have intentionally used the words, "Obama government" rather than "Obama administration" because some of these connections are not technically within his administration. These would include ambassadorial appointments and Supreme Court appointments (like that anticipated for Elena Kagan). This also includes lobbyists like Dick Gephardt who has multiple connections/input to Obama and to Goldman Sachs and the Hamilton Project.

In a similar vein, I use a broader definition than just Goldman Sachs (GS) because GS has funded, along with its ex-leader Robert Rubin, a right-leaning think tank called the Hamilton Project and embedded it within the Brookings Institution. Some of its activities thus also spill over into Brookings Institution projects which doubtlessly was one of the clever reasons Rubin and GS did this, along with providing their essentially neo-con/neo-liberal think tank with camouflage. This has worked beautifully for GS and Rubin as most writers–even critical ones like Matt Taibbi–seem unaware of the important doings of the Hamilton Project. The Hamilton Project has 32 people sitting on its Advisory Council and many have ties to Goldman Sachs, Rubin and the Obama government. Of the first four Directors of the Hamilton Project, three work in the Obama administration. Meanwhile, the most recent Director of the Hamilton Project came from academia and from a position as economic adviser to the Obama administration to Hamilton in the sort of "revolving door" that Washington is famous for.

The Hamilton Project (named after Alexander Hamilton whose most famous dictum was "The People are a Great Beast") is essentially pushing for cuts in entitlements (like social security), outsourcing American jobs, and for more NAFTA-type agreements. This is essentially the game plan for the Obama administration, not surprising since Barack Obama was the inaugural speaker at the Hamilton Project (and Joe Biden spoke there just weeks ago).

NOTE: This diary and its predecessor are the result of a lot of painstaking work. I am sure there are other Goldies out there in the Obama administration who I have missed. If so, PLEASE let me know by dropping their name in a comment below.
II. Additional Names of Goldies serving with Obama.

Enough background information, let’s reveal the Goldies with connections/jobs within the Obama government (or with "revolving door" status). For your convenience, I’ve listed the new names to the list separately and in the first section, led off by Elena Kagan because the buzz is that she is Obama’s pick to the Supreme Court.

NEW GOLDIES REVEALED (with respect to prior article):

Kagan was appointed by Obama to serve as the Solicitor General. The Solicitor General, often called the 10th Supreme Court Justice, is the person who argues the U.S. government side of cases before the court. Buzz has it that she is also Obama’s next pick to the Supreme Court, perhaps as early as this Monday.

At any rate, she’s already in the Obama government as Solicitor General. She also has ties to Goldman Sachs. From 2005 to 2008, according to USA Today and other sources, Kagan served as a member of the Research Advisory Council of the Goldman Sachs Global Markets Institute. Matt Kelley of USA Today wrote in his article, "Possible Supreme Court Pick Had Ties to Goldman Sachs" that Kagan received $10,000 from Goldman Sachs for her services in 2008, per federal disclosure forms. But since she was doing the same thing in 2005, 2006, and 2006, it would appear that she pulled in $40,000 from Goldman Sachs for what appears to be sitting in on one day sessions looking at big issues affecting the global economy. $40,000 grand for so little time is a nice gig if you can get it (and she likely got expenses too) for so little time. It’s not a huge amount but it is enough to affect a player’s mind.

Here are some questions that Senators on the Judiciary Committee might want to ask of Kagan:
1) Can you produce all the paperwork/receipts related to your ties to Goldman Sachs?
2) Did you report the GS payments as income on your income tax returns (lots of people in the Obama administration (like Timothy Geithner) or wanting to be (like Tom Daschle) seem to have trouble filling out proper IRS forms.

3) Will you recuse yourself in any cases brought before you at the Supreme Court (if confirmed) that have any connection, no matter how remote, to Goldman Sachs or its entities?
4) As Solicitor General of the United States, have you handled (defined largely) any cases relating to Goldman Sachs or its entities?

Have you given advice on any such cases?

5) Have you had any dealings with The Hamilton Project? This includes speeches given there, conferences attended, papers published etc.

Here is a murky connection (but an important one) between Obama and Goldman Sachs. Berkowitz serves as the Chairman, Board of Directors of the Washington Institute for Near East Policy (WINAP). It is an important Washington think tank that gives input to Obama. It was established by the American Israel Public Affairs Committee (AIPAC) in 1985, according to Wikipedia. People affiliated with WINAP are a virtual Who’s Who of foreign policy including Henry Kissinger, Warren Christopher, Lawrence Eagleburger, and Richard Perle.
Berkowitz also is Managing Director of BlackRock and sits on the Advisory Council of the Goldman Sachs funded Hamilton Project. 

BlackRock is a global investmentment management firm with over $3.35 trillion under management. There is a virtual revolving door of hiring and acquisitions between BlackRock and Goldman Sachs as reported here.

Dudley, according to the Federal Reserve Bank of New York web site:
became the 10th president and chief executive officer of the Federal Reserve Bank of New York on January 27, 2009. In that capacity, he serves as the vice chairman and a permanent member of the Federal Open Market Committee (FOMC), the group responsible for formulating the nation’s monetary policy.
Mr. Dudley was a partner and managing director at Goldman, Sachs & Company and was the firm’s chief U.S. economist for a decade. Earlier in his career at Goldman Sachs, he had a variety of roles including a stint when he was responsible for the firm’s foreign exchange forecasts. Prior to joining Goldman Sachs in 1986, he was a vice president at the former Morgan Guaranty Trust Company. Mr. Dudley was an economist at the Federal Reserve Board from 1981 to 1983.
Dudley seems to have Geithner’s old job, passed from one Goldie to the next.

Effron is a money man. As a bundler for the 2008 Obama campaign, he raised more than $100,000. According to this web site he also was a "Mega Donor" to Obama in 2008, giving more than $28,500 though committees supporting Obama. His wife is also a major contributor, giving tens of thousands of dollars.

Effron is a founding partner of Centerview Partners LLC. Their web site indicates he has executed over $400 billion in transactions.

Effron is also on the Advisory Council of the Goldman Sachs/Robert Rubin funded Hamilton Project.

FROMAN, Michael.
Froman (born August 20, 1962) is deputy assistant to the president and deputy national security adviser for international economic affairs, a position to be held jointly at the National Security Council and the National Economic Council. His responsibilities will include serving as the White House liaison to the G7, G8 and G20 summits of economic powers.[

He's on my prior list but his name was misspelled there (as Frohman). Froman's days with Obama go back to Harvard Law School. Froman appears to be the original link between Robert Rubin/Goldman Sachs and Obama.

From Wikipedia:
>Froman received a bachelor's degree in Public and International Affairs from the Woodrow Wilson School of Princeton University in 1985, a doctorate in International Relations from Oxford University and a law degree from Harvard Law School where he was a classmate of Barack Obama[2][3], and also an associate of Obama’s on the Harvard Law Review.[4]

After Harvard, Froman had lost touch with Barack Obama until Froman heard of Obama’s Senate run. Froman volunteered at that point to help, began raising funds for the candidate, and introduced the candidate to Robert Rubin, whom Froman had followed from the Treasury Department to Citigroup [Froman served as Rubin's Chief of Staff] after the Clinton administration.[4] Before moving to the Obama administration, Froman most recently was a managing director of Citigroup’s Citi Alternative Investments Institutional Clients Group, where he was head of infrastructure and sustainable development [5]. He also served on 12-member advisory board of the Obama campaign’s transition team.[1]
this source provides new information indicating Frohman, who was Mr. Goldman Sach’s former Chief of Staff, as an "informal adviser" to Obama. They spell his name as Froman, Michael.

Obama just appointed Fudge to his budget deficit reduction committee (whose real goal, like that of the Hamilton Project, is to cut entitlements). Fudge has been the public relations craftsman for some of America’s largest corporations. She sits, according to the Washington Post, as a Trustee of the Brookings Institution within which the Hamilton Project is embedded.

Gephardt is one of the movers and shakers in the Democratic party and served as the Democratic Majority Leader of the House from 1989 to 1995. While he doesn’t have an "official position" in the Obama administration his name was floated as a possible VP to Obama in 2008. Like so many ex-politicians, Gephardt has set up a consulting firm that has its fingers in just about every pie in the Obama government. Gephardt, for instance, advised the Obama administration, according to the New York Times, that universal health coverage could not pass in 2009 and urged Obama to "defer that goal." That’s what the people Gephardt takes money from wanted and that’s also what Obama did.

Here’s more from The New York Times:
One old friend links Mr. Gephardt’s assessment to his lucrative new career as a lobbyist. “He’s advising a lot of big corporations,” said Tom Buffenbarger, president of the machinists’ union.
Wikipedia says that:
Dick Gephardt started Gephardt Group in January 2005 and is currently its President and CEO. Gephardt Group is a multi-disciplined consulting firm focused on helping clients improve Labor Relations, develop Political and Public Policy Strategies and enhance Business Results by gaining access to new markets or partners.[15]
According to Wikipedia:
is also an active consultant for Goldman Sachs.
Gephardt also sits on the Advisory Council of the Hamilton Project funded by Robert Rubin and Goldman Sachs.

Obama appointed Murphy to serve as his Ambassador to Germany. In the 1990’s, Murphy, who worked for decades with Goldman Sachs, served as GS’s head of its German offices. From 1997-1999, Murphy served as President of Goldman Sachs, Asia (during the Asian economic crisis). In all, according to Wikipedia, Murphy spent 23 years at Goldman Sachs including as a Senior Director of the firm in 2003 before retiring from GS in 2006.

Granoff is a money man, and contributed lots of bucks as a "mega donor" to the Obama campaign. At least $28,500 according to Public Citizen.

Granoff is President, CEO and Founder of Pomona Capital, a venture capital group.
Granoff is also one of the 19 members of the Goldman Sachs-Robert Rubin funded Hamilton Project.

Liddy was, until recently, the CEO of AIG which, during the Obama administration, was essentially taken over by the government. He served in high positions at Goldman Sachs including : Board Member (Chairman, 1990-94; Director, 2003-2008). He was picked to the Goldman board by none other than Hank Paulson, former head of Goldman Sachs who was Bush’s Treasury Secretary who with Obama’s Treasury Secretary (Geithner) fashioned TARP.
Wikipedia reports:
Liddy garnered national headlines in October 2008 for defending a controversial $440,000 AIG retreat for top-performing insurance salesmen at the luxury St. Regis Resort in Monarch Beach, California. The retreat, which was held shortly after the U.S. government rescued AIG from insolvency with $84 billion in loans, included $200,000 for rooms, $150,000 for meals and $23,000 for the spa. In testimony before the U.S. House Oversight Committee, Liddy stated that such retreats "are standard practice in our industry."[11] During the U.S. presidential debate on October 7, 2008, Democratic presidential nominee Sen. Barack Obama mentioned the retreat and said, "The Treasury should demand that money back and those executives should be fired."[12]
But that’s not what happened. Instead, Barack Obama as President kept Mr. Liddy on while AIG was essentially in receivership under the Obama administration.
How about this for a conflict of interest, again as reported by Wikipedia:
Liddy owns 27,129 shares in Goldman Sachs, at the time worth just over $3 million.[18] In April 2009 members of Congress called for Liddy to sell these shares, as they create a conflict of interest due to Goldman Sachs’ receipt of bailout money.[19] About two-thirds of Liddy’s holding is restricted and cannot be sold until May 31.[18]
Liddy announced on May 21, 2009 that he would resign as AIG Chairman and CEO when replacements were found, suggesting that the two roles be split.[20] Liddy was not paid for his time at AIG.[21] On August 3, 2009, Robert Benmosche was named President and CEO of AIG.[7]
Niederauer is CEO of the New York Stock Exchange. While a private entity, it is heavily regulated by the government and has close government ties. Niederauer, for instance, is a frequent speaker at Federal Reserve events:
New York Stock Exchange Euronext CEO Duncan L. Niederauer delivered the keynote address today at the fourth annual global summit on financial literacy hosted by the Federal Reserve Bank of Chicago and Visa Inc.
He has an extensive Goldman Sachs background:
He joined NYSE Group following a 22-year career at Goldman Sachs. He served as a Managing Director of Goldman Sachs since 1997 and was responsible for U.S. cash equities operations, including Institutional and Member Firm Client Group sales and client services for … both the New York Stock Exchange and NYSE Arca. Mr. Niederauer was previously a Partner at The Goldman Sachs Group, Inc. (United States) ("GS") where he held many positions.
Perry is an Obama supporter, adviser and fund raiser. He worked for Goldman Sachs and is on the Goldman Sachs’funded, Hamilton Project’s Advisory Council. He is also CEO of Perry Capital, a hedge fund. Perry owns the full floor penthouse at 1 Sutton Place in NYC and according to the Washington Examiner is one of 15 " fat cat Wall St. Banker" friends of Obama. These are the same "fat cats" that Obama sometimes flails out at in the press to pretend he’s a populist!

Shafran served as an advisor/aide to Timothy Geithner especially on TARP. All of the advisers on that appear in a very murky fashion. And Shafran, like a lot of other TARP advisers, has extensive ties to Goldman as a executive for years. He’s especially shadowy, however. Here’s a link about him from CBS News.

John Thain has served as an adviser to Timothy Geithner. Thain was President and Chief Operating Officer of Goldman Sachs from 1999 to 2003.

An economic adviser to President Obama. Tyson is a Hamilton Project Advisory Council Member. The Hamilton Project as noted above was founded by Bob Rubin and Goldman Sachs and has close links to Obama personally.

This lists compiles the names above and those in the prior diary on this. For more detail on names not annotated in this diary, see the earlier diary linked here):

CRAIG, GREGORY. (revolving door)
FROMAN, Michael.
GREENSTONE, MICHAEL (revolving door to Hamilton Project)

1. Greg Gordon (McClatchy Newspapers), "Goldman’s White House Connections Raise Eyebrows" April 21, 2010.
2. Fflambeau, "With the Obama Administration Infested With Goldman Sachs People, How Real is the Obama/Democratic Attack on Big Banks" FDL Diary, April 21, 2010.
3. "More Investigations of Goldman Sachs, A Double-Edge Swords for Obama and Democrats"
4. Paul Street’s article showing that Obama held corporatist ideas long before elected and his indebtedness to the interests of big business.
5. Matthew Skomarovsky, "Obama Packs Debt Commission with Social Security Looters", March 28, 2010 at Alternet.
6. Fflambeau, "A List of Goldman Sachs People in the Obama Administration: Names Attached to the Giant Squid’s Tentacles"
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JR said...

I guess Timothy Geithner doesn't like being mistaken for a Goldmanite but his mentor was Rubin so what can you say?

Story here:

JR said...

GS Uranium Derivatives?

Goldman's glowing
Bank's commodities business to deliver uranium

More here:

JR said...

An interesting take on how GS works its magic:

Anonymous said...

@JR I heard CNBC (otherwise known for their BS) is trying to dispel the notion that Geithner worked at one I know even thinks that...but most people know all his policy directives and actions have been to FAVOR Goldman and other TBTF' in essence like a bought and paid for lobbyist...he works FOR them at their pleasure not the American citizenry!

Anonymous said...

Hey CNBC Geithner is an enabler....remember Dylan?

The guy has integrity...I can see why he left the show...

Sniffing out the swindlers

JR said...

It's interesting to see what people thought about GS and H. Paulson in December 2007. Stein was wrong on the economy. It is plain to see that GS knew there was going to be a downturn in the sub-prime mortgages and they were prepared. (video)

I'm surprised it took until 2010 for the SEC to accuse GS of fraud. This information is also from December 2007:

How Goldman profited from subprime meltdown

Anonymous said...

Surprised? was preordained..Keiser nails it!

Because the problem in America is that the bankers and the politicians conspire to loot the country of whatever money they can yet steal. We see a kleptocracy in action and the people will be left homeless and starving.

This is done by design?

People steal money on purpose (laughs). The kleptocrats steal money, because they want to steal money. They don’t accidentally steal money. It’s done on purpose. It’s premeditated. Thieves steal money, because they want the money.

In the sense that Mr. Obama is something like a doppelganger of Mr. Bush during Katrina?

Much worse. At least with Bush you knew where he stood. I believe with Obama there is nobody home. He is a ghost. He doesn’t do anything. He is a Manshurian Candidate, he is a robot, he is nothing. He has done nothing, he is doing nothing, he will never do anything. Obama is just waiting to get a job at Goldman Sachs or JP Morgan in three or four years time and that’s it. The White House is a way to improve his resume.

Anonymous said...

Failure Of Obama's Pet ShoreBank Costs Taxpayers $368 Million, Which Immediately Goes To Goldman Sachs Among Others

As it stands, Goldman and 11 other banks are receiving a multimillion dollar gift to conduct a portfolio liquidation run-off of ShoreBank's assets, while merely making sure existing deposits are serviced. At least we now know just how truly angry at Wall Street Obama is.

Anonymous said...

Wonder how much $ could be used to prevent this if goldman and their ilk did not bilk the country for their losses...

LAKE MARY, Fla. -- Investigators in Seminole County say they've discovered a bizarre problem: adult children are dropping off their elderly parents at hotels and motels, and abandoning them.

"A lot of the local hotels seem to be getting seniors that are just dropped off by their kids," said Officer Zach Hudson of the Lake Mary Police Department.

One man was left at the La Quinta Inn in Lake Mary for several weeks.

JR said...

Geithner may not have worked for Goldman Sachs's offices but he certainly does their work for them when it comes to manipulating financial legislation. Matt Taibbi of Rolling Stone
Magazine sat for a year watching the financial reform package being manipulated and finally passed. On page 3 and 4 of his article, Matt talks about the role Geithner played in making sure the bill didn't impact negatively on the Wall Street banks.

See story:

JR said...

Time magazine created a list of 25 people most responsible for the financial crisis. The most obvious one from Goldman Sachs is Hank Paulson:

Larry Rubinoff said...

Some very good comments and observations by all above.

I too believe the "crash" was by design and have said that from the very beginning. Goldman knew, Paulson (the Treas Sec'y) knew, Geithner (Then the Fed Bank of NY Pres.) knew, in fact they all knew in Washington and on Wall Street.

What caused the bubble was not the realization that there was a bubble about to burst, the bubble was burst intentionally by Wall Street no longer offering the "securities" for sale to investors.

You see, the market crashed almost overnight. If this were a true free market with literally m8illions of investors around the world frothing at the mouth to buy more of these MBS's then there is no way "in the world" that all of these millions of investors all decided to stop buying almost at the same time. There would have had to have been a gradual decline but it happened all to fast. We saw this happening from inside the mortgage industry.

To the "Anon" who said this was all by design, YOU ARE RIGHT. ALL of this was and still is by design.

The transfer of wealth, the eradication of the middle class, the destruction of retirement plans at a time when the baby boomer generation will be retiring by the millions and would need their money.

This is all a great plan (some will call my thoughts a conspiracy theory). But just look at all of this very objectively.

This all began in earnest back with the Clinton administration, expanded by the G.W. Bush administration who actually brought the concept of The New World Order to fruition (words uttered by his father and originated with Meyer Rothschild in the 1700's). The Obama administration, `who is also there by design, is just continuing the plan as actually Rothschild laid it out way back when.

Sorry for this long comment. I may expand on it on our site in the future.

Thanks JR and the Anon's for reading and commenting. Your links and comments are informative.

If any of you have a link you would like to see published as a post, please send them to me at

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