The Paulson Phone Calls

Gretchen Morgenson jumps on the “Goldman as the root of all evil” train yesterday in the New York Times. Her take on the theme is that Henry Paulson had inappropriate contact with Lloyd Blankfein, Goldman’s (NYSE:GS) CEO, during the credit crisis.

Ms. Morgenson uses phone records that The Times obtained which show that Paulson talked more often with Blankfein then he did with other bank executives. She pays particular attention to contact between the two during the week in which AIG (NYSE:AIG) was rescued and uses that to suggest that there is more here than just a Treasury Secretary keeping up with market events.

I’m tired of this whole debate and tend to think that it serves nothing so much as to fill space on a slow August news day. Therefore, I’m going to try and do something more productive than foisting my views on your eyeballs this Sunday morning.

If you would like the best follow-up that I’ve seen on the article, I’d recommend that you go to Naked Capitalism and The Economics of Contempt. Yves Smith does a good job supporting the thesis that Goldman and indeed all of the participants are getting sweetheart deals while the Economics of Contempt author nicely dispels some of the myths surrounding Goldman’s exposure to AIG.

Now on to other things.

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About Tom Lindmark 401 Articles

I’m not sure that credentials mean much when it comes to writing about things but people seem to want to see them, so briefly here are mine. I have an undergraduate degree in economics from an undistinguished Midwestern university and masters in international business from an equally undistinguished Southwestern University. I spent a number of years working for large banks lending to lots of different industries. For the past few years, I’ve been engaged in real estate finance – primarily for commercial projects. Like a lot of other finance guys, I’m looking for a job at this point in time.

Given all of that, I suggest that you take what I write with the appropriate grain of salt. I try and figure out what’s behind the news but suspect that I’m often delusional. Nevertheless, I keep throwing things out there and occasionally it sticks. I do read the comments that readers leave and to the extent I can reply to them. I also reply to all emails so feel free to contact me if you want to discuss something at more length. Oh, I also have a very thick skin, so if you disagree feel free to say so.

Enjoy what I write and let me know when I’m off base – I probably won’t agree with you but don’t be shy.

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