Paul Solman: So you mean Goldman Sachs borrows money from the Federal Reserve at a tenth of a percent, a quarter of a percent, takes that money, invests in US Treasury securities at 3.5%, 4%WSJ - PBS Show Probes ‘Government Sachs’
DAVID STOCKMAN: 3.5%. Exactly.
Paul Solman: And they make the money just…
DAVID STOCKMAN: On the spread.
Paul Solman: and the money is simply being re-circulated from the Fed back to the Treasury?
DAVID STOCKMAN: That’s exactly right.
Also, Business Insider shared with us the first Senate hearing:
2:38: THIS IS A BIG DEAL. TOURRE AT FIRST SAYS THAT ACA "ONLY USED HALF OF PAULSON'S SUGGESTIONS." Then he backtracks and says that Paulson selected a "small percentage," then his colleague (Birnham?) corrects him. Then he says, he doesn't remember the percentage that was recommended by Paulson. Then he says it was "more than a few."Read all hearing and comments here: BI - Goldman Gets Grilled, First Up To Bat Is Fabulous Fab
It's a big deal because ABACUS was marketed as "selected by ACA." This could factor in later.
Also remember that you can solve all your questions about Goldman's case at our Goldman's Timeline post.
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