ECB president, Prime Minister of Italy and Greece’s prime minister have all worked for or with the controversial investment bank – and the list goes on in the U.S..
The fan technocratic wind is blowing over Europe at the moment. Both Greece and Italy have had to pull the plug on democratically elected governments, and instead point to the officials to lead countries through the crisis time. And they have something in common, Lucas Papademos and Mario Monti. Each has close contacts with the controversial investment bank Goldman Sachs.
The bank is known as one of the most successful investment banks, but also to see more on results than on ethics. The bank’s top executives have historically been successful in getting top positions in public administrations.
At the top of the podium among the new political positions is Mario Draghi, newly appointed president of the European Central Bank and thus among the most powerful people in Europe.
Greece’s new Prime Minister Lucas Papademos has not worked for Goldman Sachs. But as a bank manager for Bank of Greece between 1994 and 2002, he was responsible for the country’s transition from the drachma to the euro. It was during this period, Goldman Sachs’ creative loan arrangements helped the Greeks to hide the deficit on the balance sheet. Petros Christodoulos, head of the department that handles Greece’s huge debt, also has a past in the bank, writes French Le Monde.
Irishman Peter Denis Sutherland, who played a central role in saving Ireland from the debt crisis, the chairman of Goldman Sachs International – a Goldman Sachs subsidiary in England. He is also advisor to Goldman Sachs Group.
On the other side of the Atlantic continues the streak. Here is Goldman Sachs known as Government Sachs. Since cyclical waves ran high in 2006, the U.S. Treasury Hank Paulson was firmly against the requirements for more regulation and transparency in the banking sector. Before he took office, he was CEO and Chairman of Goldman Sachs.
When the financial crisis hit, entered the United States and rescued insurer AIG When inmates Hank Paulson is a former colleague from Goldman Sachs as head of the insurer. The rescue of A.I.G. was criticized because it cost taxpayers billions of dollars. Was the insurer failed, had, among other cost Goldman Sachs about $ 2.5 billion.
Also America’s 700 billion dollar rescue package put Hank Paulson in as a Goldman Sachs employee to manage. It was the 35-year-old Neel Kashkari, who came from a position as vice president of Goldman Sachs in San Francisco.
It is worth noting however, that this also was a man of Goldman Sachs’s past that helped to hire Hank Paulson to begin with. The New York Times was the fact Joshua B. bolt – George W. Bush ‘s team manager and former Goldman Sachs director – who insisted on Hank Paulson as Treasury.
The current finance minister in the United States, Timothy F. Geitner, dismissed as head of the Central Bank in New York in 2008 to let Lehman Brothers register as a bank holding company and thereby gain access to public funding. This meant that the bank collapsed. The week after, Goldman Sachs and Morgan Stanley allowed to change their registration to a bank holding company.
Timothy Geitners chief of staff is also the former Goldman Sachs lobbyist Mark Patterson, despite Barack Obama’s pledge to limit the tradition of a revolving door between Goldman Sachs and the U.S. administration. Goldman Sach was also among the president’s biggest donors during the presidential campaign, writes the Washington Examiner.