The Illicit Relationship Between Goldman Sachs and Paulson

After being granted TARP bailout funds from good friend and former boss Hank Paulson, Secretary of the Treasury, it turns out Goldman Sachs (GS) is paying a whopping paying 1% on $2.3BB in profits for 2009, down from a more respectable 39% in 2008.

Although earnings were down and losses up in the end of 2008, Goldman sources reported that the astonishing tax windfall was more due to "changes in our geographic earnings mix."

When I heard "changes in our geographic earnings mix," I immediately thought of a document that a friend had sent me a while back, with a rather long list of off-shore hedge funds and other tax-evading rackets located in the Cayman Islands, Bermuda, Mauritius, and the British Virgin Islands - all infamous for their anti-American tax havens utilized by US corporations to evade their legal dues - all of which are owned in one way or another by Goldman Sachs.

It kills me to think Goldman probably spends millions of dollars in order to avoid billions of dollars in taxes, and then turns around and asks the American people for a handout.

Oh, and then here come the layoffs…

Hopefully the Democratic led Congress will get to the bottom of some of the illicit relationships between regulators like Paulson and their Wall Street connections, unless they are too scared they will have to accept responsibility for some of the Fannie and Freddie mess.

How can we continue to subsidize tax evasion by our largest corporations while the nation is in an economic tailspin, and people are being thrown out on the streets.

It's like asking the American Taxpayer to dig their own grave. It's criminal!

The List:

Scadbury Funding Limited, Cayman Islands

Scadbury II Assets Limited, Cayman Islands

GS Killingholme Cayman Investments Ltd., Cayman Islands

GS Killingholme Cayman Investments II Ltd, Cayman Islands

Forres Investments Limited, Cayman Islands

GS Funding Management Limited (1), Cayman Islands

GS Capital Funding (Cayman) Limited, Cayman Islands

Goldman Sachs Investments (Mauritius) I Limited, Mauritius

Goldman Sachs LLC, Mauritius

Tiger Strategic Investments LTD, Mauritius

MLT Investments LTD., Mauritius

JLQ LLC Cayman Islands,

Goldman Sachs (Japan) Ltd., British Virgin Islands

GSEM Bermuda Holdings, L.P. Bermuda

GS Equity Markets, L.P. Bermuda

Goldman Sachs (Cayman) Holding Company, Cayman Islands

Linden Wood, LTD., Cayman Islands

Goldman Sachs Credit Partners L.P,. Bermuda

Goldman Sachs Specialty Lending CLO-I, LTD., Cayman Islands

Amagansett Funding Limited, Cayman Islands

Amagansett II Assets Limited, Cayman Islands

GS European Funding I LTD,. Cayman Islands

GS Funding Europe II Ltd., Cayman Islands

Sources:

http://sec.edgar-online.com/2008/01/29/0000950123-08-000857/Section57.asp

http://www2.goldmansachs.com/worldwide/cayman-islands/index.html

Disclosure: Long Citigroup.

Comments

[mauijeff:]

You got it Anthony. The Treasury is perfectly happy with the corporate owned media focusing on auto bailouts while the banks that received trillions of dollars shift the money to these "havens". Paulson will not tell us how much and who. We are witnessing crimes against the United States. The focus of us all should be on the lawlessness of the Fed and Treasury instead of passively waiting for them to save us...they are ripping us of blindly. So listen up you day trading monkeys, stop trying to find the bottom of the market so you can make a little day trade profit and pay attention to the crimes unfolding before your greedy little eyes.

2008 Dec 19 06:19 AM

[herbert hoover:]

Paulson should be in jail.

2008 Dec 19 06:37 AM

[SW Richmond:]

"This government will operate like an ambuscade."

- Patrick Henry, at the Virginia Ratification Debates, 1788

2008 Dec 19 07:28 AM

[CrimeWatch:]

Glad someone finally said it. Watched GS come to the “rescue” of MGI and believe GS then shorted it for fun and profit. Whished we had short reporting so these guys couldn’t hide. Sorry to sound paranoid, but I can’t help wondering how much of this was really orchestrated to clean out Baby Boomers retirement accounts. Bail out tax avoiding GS (if they even REALLY need a bailout, how much is hidden?) but throw Detroit to the wolves. Yesterdays joke:
“President George W. Bush, asked about an auto bailout, said he hadn't decided what he would do but didn't want to leave a mess for Barack Obama who takes office a month from Saturday.”
finance.yahoo.com/news...
Wished I could believe the change of guard would spell the end for the criminals, but I don’t.

2008 Dec 19 08:33 AM

[tginomorebush:]

king george iii bushit has been eating cake, while he "the decision-maker" lets the auto industry and auto union die, while he is "thinking" (something that is beyond him) and reaching his "mission-accomplished" ........ he is the WORST potus of ALL TIME! his recent comment that he has not "sold his soul" to be popular is an understatement ........ he has sold OURs!

2008 Dec 19 09:12 AM

[Warm_Paw:]

Finally a reporter who says it like it is.
The world needs more REAL discussion.
The fact the editor allowed this to get to print means Seeking Alpha
hasn't been squeezed...yet.
Hope it never happens.
It's time the masses were allowed to know the truth.

2008 Dec 19 11:39 AM

[Poor me:]

Thank you very much. We will never know the depths of their crimes. I had a notion that they only wanted to give $30 billion to Argentina only because they had some hidden funds there that the Ar. goverment would have taken over along with all the other pensions of their people. Now Bush grants Congress a pay increase, like they need it. No CEO's better make any money this year, but we can, is that right. Nancy, Harry, Dodd, Paulson, and all the rest of you crooks, just keep digging that hole, when we get fed up with you, and we will, even though American's are slow to react, when we do, you will all be voted out, and you will have ruined the reputation of the Democrat party for decades to come, so enjoy it while you can. I hope you all get what's coming to you in your life time. Wouldn't it be a happy day to see them all dragged before a panel, and forced to admit to their lies in front of the entire world, and then throw in jail, how about Gitmo. You make us SICK.

2008 Dec 19 12:05 PM

[satguru:]

And what does knowing the truth do for us? Nothing! nada! The crooked beat goes on. Now Paulson will get the rest of the 350 billion and guess what? He is going to get it to divy up among his co-conspirators. For the 17 billion for the auto industry he is going to get $350 billion. Done deal!

2008 Dec 19 12:12 PM

[helplessobs...:]

When all this is sorted out Hank Paulson will have the same status as Bernie Madoff except he won't be in jail. GS will still be around wreaking financial havoc.

2008 Dec 19 12:18 PM

[Poor me:]

Knowing the truth will let us all see them as we already know, or think they are, and would, I hope, bring about a real change, not the pipe dream change they talk about. They have the nerve to grill the Big three CEO'S about their private jets, and the like, but then do 100 times more damage.
This is bigger than any crime in American history.

2008 Dec 19 12:19 PM

[OldNavySailor:]

These actions by corrupt elitist money lenders is a run on the wealth of the American people. They kill our youth by luring them into fighting imperialistic wars for corporate profit. They make the acquisition of higher education more and more difficult by indenturing the yoke of extreme debt around the necks of those who desire to lift themselves out of financial malaise. They dishonor our veterans by denying them the medical care they deserve and desperately need.

We no longer have a government of the people, by the people, for the people as Abraham Lincoln once said. We have fasio-socialism, a syndicate of elected representatives who are pimps for corporate agendas.

They tax us at every opportunity, whether living or dead. They impose fees, surcharges, tolls, emoluments, tributes, encumbrances; a squeeze on every last bit of our prosperity.

This is not the government of our fore-fathers. This is in your face, nothing you can do about it acts of crime against every American citizen.

It will not end until we stand together in some manner to eradicate them. Unfortunately the majority of adults in our country have not the awareness nor the inclination to revolt against these despots; these tyrannically debt enslaving evil, evil men.

What will it take to regain our freedom; what will take for a rebellion?

2008 Dec 19 12:39 PM

[desicon:]

I am sorry, the whole train of thought is stupid. Let me try to understand all these banks and auto companies are doing us favor by taking our money so they can "provide us jobs". The failed ones can be broken up into pieces in the bankruptcy court and easily picked up by thousands of banks in this country. It is silly to expect to give them money in their own terms and whine about it. There should not have been a bailout in the first place.

In the first place you do not support big government as the framers intended. It does not matter Democrat or Republican, who ever is in power the common man is always screwed.

As a voter I feel impotent.

2008 Dec 19 03:57 PM

[Anthony M. ...:]

More scary stuff for the weekend read: seekingalpha.com/artic...

2008 Dec 19 04:23 PM

[Poor me:]

Anyone see the movie Blow? Sounds like Goldman, and the others are doing the same as the Drug dealers, hiding their money in South America.
I hope they lose like he did in the movie.

2008 Dec 20 02:25 AM

[WolfLives:]

'I didn't compromise my soul' – I Would Beg To Differ!

You see there is a story across the plains – That a certain Prescott Bush – Loved his skull-&-Bones – and even went after the Chiefs – his prize he thought was that of Geronimo – But the Chiefs knew of this – and at the Last sun-dance of the Ponca tribe.
The plans were laid to replace all the chiefs upon their deaths - with different bodies – So my beg to differ is simple – Your soul drank from the skull – Of the mule-skinner.
A great Chief of the People – A Bush will never be.

2008 Dec 20 12:13 PM

[will799:]

Anyone expect anything different? Paulson was a Trojan Horse sent to us by Wall Street.

Whent the Fed was enacted in 1913 it was not a government owned corporation, but a government sponsored one, like FNM and FRE, except, unlike them, it was not publicly traded. Big eastern banks and investment houses such as the house of Morgan and (voila) the predecessor of Goldman Sachs etc bought the stock. So don't expect Bernanke to do anyting for you. If he does, he is violating his fiduciary duty to his stockholders. Does this enlighten us at all? They were just calling in their chits from each of us for 2 grand each.

And what "change" are we going to get with Obama, Biden and McCain all voting for the theft and then Messiah Obama putting the New York Fed president in as head of Treasury or the Big Fed. More like the Antichrist.

This was our golden chance for real change. All they needed to do was let the predatory financiers deleverage themselves into bankruptcy. We would get hurt some, but the wealth would shift back to the producers of goods and services. Wall Street belongs in neither class.

Snookered again, friends.

2008 Dec 22 12:25 AM