Thursday, August 06, 2009

Comment on The Belmont Club
"First principles or principles at last?"


At Lehman brothers everyone lost except their borrowers (Fannie Mae). At Bear Stearns the small investors lost. At GM and Chrysler the shareholders and senior debt holders lost and the union one. At Goldman Sachs the senior management won. At Fannie Mae the senior management won. Is there any pattern to this? Only one that a good RICO prosecutor could follow. Every dime that has been transfered to anyone in senior management (yes I mean Jamie Gorelick and Howell Raines and Barney Franks’ special friend) by Fannie Mae and Freddie Mac over the last 15 years should be clawed back.

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