Even More Shadow Finance

Nice piece in FT.Com this morning.

http://www.ft.com/cms/s/0/ffd950c4-0d0a-11df-a2dc-00144feabdc0.html?nclick_check=1

As time goes on, we will learn more and more about the creepy ways that Paulson, Geithner, and the other 40 thieves did in the U.S. Middle Class.

“Russian officials had made a top-level approach to the Chinese, suggesting that together they might sell big chunks of their GSE holdings to force the US to use its emergency authorities to prop up these companies,”

Paulson found this to be troubling? I would assume he would also find the way Goldman Sachs created CDO's and then bet against them as troubling?

I know the Chinese didn't go along with this for obvious reasons, but the Russians had every reason to try to screw us over. This was payback from Putin. We would have done exactly the same thing.

But the best part is the part where the FSA in UK voted down the Lehman takeover. They actually believe in due diligence and shareholder rights.

"Separately, Mr Paulson makes it clear that he believes that Mr Darling prevented a takeover of Lehman by Barclays out of fear that it would endanger the UK bank."

"Mr Paulson said that Mr Darling telephoned him on Friday September 12 – as the US authorities were scrambling to find a buyer for Lehman – to express concern about a possible Barclays deal. Mr Paulson said that he did not realise at the time that this was a “clear warning”."

"He was stunned to discover on Sunday September 14 that the UK Financial Services Authority would not approve the merger on an accelerated timetable or waive the requirement for a shareholder vote."
"
Tim Geithner, then president of the New York Fed, called Callum McCarthy, the head of the UK’s Financial Services Authority, to ask him to waive the vote requirement."

Geithner evidently believes that other sovereign countries should follow his shadow finance techniques.

You see, all you have to say is NO!