Go Ahead George Soros, Congratulate Hank Paulson for Encouraging Securities Fraud
Hank Paulson took a lot of heat for 'allowing Lehman to fail', George Soros went as so far as to saying "The claim that they lacked the necessary legal powers is a lame excuse. In an emergency they could and should have done whatever was necessary to prevent the system from collapsing.", Paulson was the treasury secretary, the only way he could have bailed out Lehman at the time was using the US Exchange Stabilization Fund(there was no TARP money), those funds(about $50b) are supposed to be used to in foreign exchange intervention, so the only way he could have saved Lehman was to lie to the American public that Lehman threatened the US dollar in some way.
Essentially Soros wanted Paulson to mislead people in order to save the financial system. Well it turns out that Paulson might have encouraged Ken Lewis to commit securities fraud and withhold material information from his shareholders to assure that the MER merger would not fall out of bed. Now just where are Soros congratulations letter to Paulson for putting the financial system above his integrity?
I bet we wont be hearing from him that 'Paulson did the right thing' yet that’s what he suggested in a FT.com article I quoted the line above.
The same thing applies to Bernanke, the only way he could bailed out Lehman was to lend against the commercial real estate garbage that Lehman has on its books and lie that 'We think this collateral is appropriate' and its possible that Bernanke encouraged securities fraud as well, just where are the flowers from Soros and an invitation for a tennis match?
- ▼ April (8)