Bloomberg Blasts Paulson on Bail Out Terms for Taxpayers

Way to go Bloomberg! In the article Paulson Bailout Didn’t Give Taxpayers What Goldman Gave Buffett , Bloomberg just really spells it out on how Paulson has sold U.S. taxpayers down the river on the bail out terms.

The Treasury secretary has made 174 purchases of banks’ preferred shares that include certificates to buy stock at a later date. He invested $10 billion in Goldman Sachs in October, twice as much as Buffett did the month before, yet gained warrants worth one-fourth as much as the billionaire, according to data compiled by Bloomberg. The Goldman Sachs terms were repeated in most of the other bank bailouts.

Paulson’s warrant deals may give U.S. taxpayers, who are funding the bailouts, less profit from any recovery in financial stocks than shareholders such as Goldman Sachs Chief Executive Officer Lloyd Blankfein and Saudi Arabian Prince Alwaleed bin Talal, owner of 4 percent of Citigroup Inc., said Simon Johnson, former chief economist for the International Monetary Fund

They also quote economists saying in a nutshell Paulson just plain gave the money away

The only thing missing is his pals.

One good thing to note is Elizabeth Warren is now on the TARP oversight panel. I hope she raises hell.

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