THE UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE U.S. TRUSTEE
David C. Farmer, Successor Trustee
vs.
Bobby N. Harmon
(Formerly Mary Lou Woo vs. Harmon and James Nicholson vs. Harmon)
CV05-00030 DAE/KSC
United States District Court, District of Hawaii
Judges: David A. Ezra; Kevin S. Chang
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DEFENDANT’S WITNESS
HENRY M. “HANK” PAULSON, JR.
Department of the Treasury
1500 Pennsylvania Avenue NW
Washington, D.C. 20220
Fax: (202) 622-6415
Henry Paulson is the former Chairman and Chief Executive Officer, The Goldman Sachs Group Inc.; former Chairman of the Board of Directors, The Nature Conservancy; former U.S. Treasury Secretary under George W. Bush.
Prior to joining Goldman Sachs, Hank was a member of the White House Domestic Council, serving as Staff Assistant to the President from 1972 to 1973, and as Staff Assistant to the Assistant Secretary of Defense at the Pentagon from 1970 to 1972.
Henry Paulson serves on the Boards of Catalyst, the J.L. Kellogg Graduate School of Management at Northwestern University, and is a member of the board of the Dean's Advisors of the Harvard Business School.
Henry Paulson was the founding Chairman of the Advisory Board of the School of Economics and Management of Tsinghua University in Beijing, and continues to serve on the Board, which among other things, implemented an executive education program.
Henry Paulson is a past Chairman of the The Peregrine Fund , and remains on the Board. He is a member of the Board of Directors of The Nature Conservancy and Co-Chairman of its Asia Pacific Council. In that role he is supporting the establishment of a large national park and conservation project in the Yunnan province of China, in cooperation with the Chinese government.
The Oath of Office taken by Henry Paulson:
I, Henry Paulson, do solemnly swear that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; that I take this obligation freely without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties of the office on which I am about to enter. So help me God.
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According to Yahoo! Finance, Henry H. Paulson, Jr., is the LARGEST INDIVIDUAL INVESTOR IN GOLDMAN SACHS, INC. The LARGEST INSTITUTIONAL INVESTOR IN GOLDMAN SACHS, INC. is currently Britain’s BARKLEYS GLOBAL INVESTORS UK HOLDINGS, INC. - a lead member of the notorious COMMITTEE OF 300.
Also, according to Yahoo! Finance, GOLDMAN SACHS IS THE 5TH LARGEST INSTITUTIONAL INVESTOR IN YAHOO!, INC.
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February 20, 2011
 Mark Bruzonsky, a Jewish, American Scholar and Journalist, has been a key member behind the scenes of the Israeli Palestinian peace initiative in the 1980s, meeting with Former Egyptian President Anwar Sadat and with Palestinian officials.
Interview with Scholar and Journalist, Mark Bruzonsky
In this exclusive interview with Press TV’s Autograph, Mr. Bruzonsky talks about the challenges and missed opportunities he witnessed first-hand, and how Zionist groups infiltrated American politics, US institutions and organizations.
He goes further to explain the specific time and day Obama sold out to the AIPAC (American- Israeli Public Affairs Committee) lobby, and how President Obama would never dare oppose the stronghold of the Zionist, Israeli Lobby in the US....
CONTINUED AT: https://sites.google.com/site/thecatbirdsnest8/home/how-zionists-infiltrated-the-u-s
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NEW DISCOVERY (07-31-10): More evidence of the Israeli/Jewish connections with the 9-11 terrorist attacks, and undisclosed political and financial relationships between the American-Israel Public Affairs Committee (AIPAC), Larry Silverstein, Governor Linda Lingle, George W. Bush, Michael Mukasey, Joshua Gotbaum, AIG, Chubb Group, Hank Greenberg, Marsh & McLennan, Jeff Greenberg, Tim Geithner, Bill Clinton, Hillary Clinton, Ron Burkle, Yucaipa, Aloha Airlines, David Banmiller, David Farmer, Henry Paulson, Robert Rubin, Goldman Sachs, The Nature Conservancy, Tesoro Petroleum, Shell Oil, Barack Obama, and others as detailed in the following Exhibits:
ISRAEL DID 9/11 - ALL THE PROOF IN THE WORLD!
 Barack Obama is tied in pretty tightly with Goldman Sachs
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Goldman Sachs to Pay Record $550 Million to Settle SEC Charges Related to Subprime Mortgage CDO
Firm Acknowledges CDO Marketing Materials Were Incomplete and Should Have Revealed Paulson's Role
FOR IMMEDIATE RELEASE
2010-123
High-Res Photo
“This settlement is a stark lesson to Wall Street firms that no product is too complex, and no investor too sophisticated, to avoid a heavy price if a firm violates the fundamental principles of honest treatment and fair dealing.”
Robert Khuzami
Director
SEC Enforcement
Washington, D.C., July 15, 2010 — The Securities and Exchange Commission today announced that Goldman, Sachs & Co. will pay $550 million and reform its business practices to settle SEC charges that Goldman misled investors in a subprime mortgage product just as the U.S. housing market was starting to collapse.
In agreeing to the SEC's largest-ever penalty paid by a Wall Street firm, Goldman also acknowledged that its marketing materials for the subprime product contained incomplete information.
Additional Materials
In its April 16 complaint, the SEC alleged that Goldman misstated and omitted key facts regarding a synthetic collateralized debt obligation (CDO) it marketed that hinged on the performance of subprime residential mortgage-backed securities. Goldman failed to disclose to investors vital information about the CDO, known as ABACUS 2007-AC1, particularly the role that hedge fund Paulson & Co. Inc. played in the portfolio selection process and the fact that Paulson had taken a short position against the CDO.
In settlement papers submitted to the U.S. District Court for the Southern District of New York, Goldman made the following acknowledgement:
Goldman acknowledges that the marketing materials for the ABACUS 2007-AC1 transaction contained incomplete information. In particular, it was a mistake for the Goldman marketing materials to state that the reference portfolio was "selected by" ACA Management LLC without disclosing the role of Paulson & Co. Inc. in the portfolio selection process and that Paulson's economic interests were adverse to CDO investors. Goldman regrets that the marketing materials did not contain that disclosure.
"Half a billion dollars is the largest penalty ever assessed against a financial services firm in the history of the SEC," said Robert Khuzami, Director of the SEC's Division of Enforcement. "This settlement is a stark lesson to Wall Street firms that no product is too complex, and no investor too sophisticated, to avoid a heavy price if a firm violates the fundamental principles of honest treatment and fair dealing."
Lorin L. Reisner, Deputy Director of the SEC's Division of Enforcement, added, "The unmistakable message of this lawsuit and today's settlement is that half-truths and deception cannot be tolerated and that the integrity of the securities markets depends on all market participants acting with uncompromising adherence to the requirements of truthfulness and honesty."
Goldman agreed to settle the SEC's charges without admitting or denying the allegations by consenting to the entry of a final judgment that provides for a permanent injunction from violations of the antifraud provisions of the Securities Act of 1933. Of the $550 million to be paid by Goldman in the settlement, $250 million would be returned to harmed investors through a Fair Fund distribution and $300 million would be paid to the U.S. Treasury.
The landmark settlement also requires remedial action by Goldman in its review and approval of offerings of certain mortgage securities. This includes the role and responsibilities of internal legal counsel, compliance personnel, and outside counsel in the review of written marketing materials for such offerings. The settlement also requires additional education and training of Goldman employees in this area of the firm's business. In the settlement, Goldman acknowledged that it is presently conducting a comprehensive, firm-wide review of its business standards, which the SEC has taken into account in connection with the settlement of this matter.
The settlement is subject to approval by the Honorable Barbara S. Jones, United Sates District Judge for the Southern District of New York.
Today's settlement, if approved by Judge Jones, resolves the SEC's enforcement action against Goldman related to the ABACUS 2007-AC1 CDO. It does not settle any other past, current or future SEC investigations against the firm. Meanwhile, the SEC's litigation continues against Fabrice Tourre, a vice president at Goldman.
The SEC investigation that led to the filing and settlement of this enforcement action was conducted by the Enforcement Division's Structured and New Products Unit, led by Kenneth Lench and Reid Muoio, and including Jason Anthony, N. Creola Kelly, Melissa Lamb, and Jeffrey Leasure. Additionally, together with Deputy Director Reisner, Richard Simpson, David Gottesman, and Jeffrey Tao have been handling the litigation.
# # #
For more information about this enforcement action, contact:
Robert S. Khuzami
Director, SEC Enforcement Division
(202) 551-4500
Lorin L. Reisner
Deputy Director, SEC Enforcement Division
(202) 551-4787
Kenneth R. Lench
Chief of Structured and New Products Unit, SEC Enforcement Division
(202) 551-4938
http://www.sec.gov/news/press/2010/2010-123.htm
SEE ALSO
http://www.fedupusa.org/Ben%20and%20Hank%20Lies/Paulsons%20Lies.html
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NEW DISCOVERY (04/16/10):
April 16, 2010
AP/Huffington Post
The government has accused Goldman Sachs of defrauding investors by failing to disclose conflicts of interest in mortgage investments it sold as the housing market was faltering.
The Securities and Exchange Commission announced Friday civil fraud charges against the Wall Street powerhouse and one of its executives. The agency alleges Goldman failed to disclose that one of its clients helped create -- and then bet against -- subprime mortgage securities that Goldman sold to investors. In essence, Goldman is accused of pushing a mortgage investment that was secretly devised to fail.
Investors in the mortgage securities are alleged to have lost more than $1 billion, the SEC noted.
The SEC claims Goldman Sachs and one of its top officers misled investors by not disclosing that hedge fund manager John Paulson, who made billions betting against the housing market, selected the assets that went into a complex security called "Abacaus."
Paulson & Co. is one of the world's largest hedge funds, and paid Goldman roughly $15 million for structuring these deals in 2007.
"The simultaneous selling of securities to customers and shorting them because they believed they were going to default is the most cynical use of credit information that I have ever seen," finance expert Sylvain R. Raynes told the New York Times about such deals. "When you buy protection against an event that you have a hand in causing, you are buying fire insurance on someone else's house and then committing arson."
Goldman Sachs shares fell more than 10 percent after the SEC announcement...
CONTINUED AT: DIRTY GOLD IN GOLDMAN SACHS
NEW DISCOVERY (10/16/09):
October 9, 2009
BILL MOYER’S JOURNAL
BILL MOYERS: Welcome to the JOURNAL.
I sat in a theater packed with passionate moviegoers, every one of them seemingly aghast at the Wall Street skullduggery exposed by Michael Moore in his latest film. It's called 'Capitalism: A Love Story.' Here's an excerpt:
MICHAEL MOORE: We're here to get the money back for the American People. Do you think it's too harsh to call what has happened here a coup d'état? A financial coup d'état?
MARCY KAPTUR: That's, no. Because I think that's what's happened. Um, a financial coup d'état?
MICHAEL MOORE: Yeah.
MARCY KAPTUR: I could agree with that. I could agree with that. Because the people here really aren't in charge. Wall Street is in charge.
BILL MOYERS: That's the progressive Representative from Ohio, Marcy Kaptur, she's with me now. She has a Masters from the University of Michigan, did graduate study at M.I.T. and still lives in the same house in the Toledo working class neighborhood where she grew up.
She's in her 14th term in Congress, the longest-serving Democratic woman in the history of the House, and she's an outspoken financial watchdog on three important Committees: Appropriations, Budget and Oversight and Government Reform.
Also with me is a familiar face to viewers of this broadcast. Simon Johnson is the former Chief Economist at the International Monetary Fund. He now teaches Global Economics and Management at M.I.T.'s Sloan School of Management. He's one of the founders of the website Baselinescenario.com. I check it out daily for Simon's take on the economic and financial crisis.
It's been a year since the great collapse and both my guests are well equipped to assess what's happened since then. Welcome to you both.
MARCY KAPTUR: Thank you.
BILL MOYERS: Let's look at this story that I just read from the Associated Press this week about how Treasury Secretary Geithner is on the phone several times a day with a select group of very powerful Wall Street bankers, especially Citigroup, J.P. Morgan, Goldman Sachs. He will talk to them when Members of Congress have to leave a message on the answering machine. And these are the bankers who helped bring on this calamity and who are now benefiting from it. What does that say to you?
MARCY KAPTUR: That says to me that Wall Street and Washington is a circuit. And because Mr.Geithner headed the New York Fed that that historic relationship, unfortunately, continues. And it gives them special access and special power to influence policy.
SIMON JOHNSON: Well, I think it really tells you how the system works. The system is based on access and is based on what on Wall Street shaping Washington's view of what's important.
It's the people who are very close to Mr. Geithner before when he was the head of the New York Fed. Before he became Treasury Secretary. These people have unparalleled access. And in a crisis, when everything is up for grabs, you don't know what's going on, the people who will take your phone calls, right, in government and people who are going to be standing in the oval office, making the key decisions. That's the heart of the system. That's the heart of how you get your agenda through, by changing their worldview.
MARCY KAPTUR: And they also move people. In other words, Mr. Geithner came from the New York Fed, he came from Wall Street, and he becomes Secretary of the Treasury. His predecessor, Mr. Paulson, came from Goldman Sachs, and he becomes Secretary of Treasury. You can go back decades, and you will see that there's this revolving door between Wall Street and Washington.
And I recently asked Chairman Bernanke of the Federal Reserve, 'Let me ask you a question. Would you be willing to consider a reform where the Cleveland Fed would have equal power to the New York Fed, in terms of how the Fed is run?'
And his answer was, 'No.' ...
CONTINUED (WITH VIDEO) AT ...
http://www.pbs.org/moyers/journal/10092009/watch.html
CATCH MR. PAULSON ALSO IN ...
THE CATBIRD’S NEW NEST
BILL MOYERS JOURNAL
DIRTY GOLD IN GOLDMAN SACHS
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NEW DISCOVERY (04/17/09); More undisclosed conflicts of interest between David Farmer, Ben Cayetano, Earl Anzai, Lyn Anzai, Robin Campaniano, Edward Liddy, Goldman Sachs, Barack Obama, Henry Paulson, The Nature Conservancy, The Hawaii Chapter of The Nature Conservancy, Suzanne Case, Peter Savio, Faye Kurren, Haunani Apoliona, OHA, Robert Rubin, Kamehameha Schools, Nathan Aipa, Bishop Museum, William Simon, HonFed, Investors Equity Life Insurance Co., Bank of Hawaii, Central Pacific Bank, Colbert Matsumoto, Dan Inouye, AIG, CV Starr, Hank Greenberg, ACE Insurance, Ace Greenberg, Chubb Group, Marsh & McLennan, Rocco Sansone, Mercer Consulting, Aloha Airlines, Bill Clinton, Yucaipa, Hawaiian Airlines, Douglas Ing, Henry Peters, Judge Rey Graulty, Judge Barry Kurren, Judge Robert Faris, etc:
April 17, 2009
A.I.G. Chief Owns Significant
Stake in Goldman
By MARY WILLIAMS WALSH, New York Times
Edward M. Liddy, the dollar-a-year chief executive leading the American International Group since its bailout last fall, still owns a significant stake in Goldman Sachs, one of the insurer’s trading partners that was made whole by the government bailout of A.I.G.
Mr. Liddy earned most of his holdings in Goldman, worth more than $3 million total, as compensation for serving on the bank’s board and its audit committee until he stepped down in September to take the job at A.I.G. He moved to A.I.G. at the request of Henry M. Paulson Jr., then the Treasury secretary and a former Goldman director.
Details about his holdings were disclosed in Goldman’s proxy statement and confirmed by an A.I.G. spokeswoman, who said they constituted “a small percentage of his total net worth.” Mr. Liddy had already owned some stock in Goldman Sachs before joining its board in 2003.
He has said that he considers his work at A.I.G. to be a public service, performed on behalf of the taxpayers, who ended up with nearly 80 percent of the insurance company. His goal is to dismantle the company and sell its operating units, using the proceeds to pay back the rescue loans. On Thursday, A.I.G. said it had sold its car insurance unit, 21st Century Insurance, to the Zurich Financial Services Group for $1.9 billion.
Along the way, Mr. Liddy has clearly disclosed that A.I.G. was serving as a conduit, with much of the rescue money passing through and ending up in the hands of A.I.G.’s trading partners.
Goldman has said in the past that it had collateral and hedges to reduce the risk of its exposure to A.I.G.
Still, his stake could represent a potential conflict and is likely to reignite questions about Goldman’s involvement in A.I.G., and about why taxpayer money was used to shield A.I.G.’s trading partners from losses, when asset values plunged everywhere and most investors suffered greatly.
Had A.I.G. simply declared bankruptcy, the financial institutions doing business with it would have ended up in court, as they did in the case of Lehman Brothers, fighting to get pennies on the dollar for their claims.
Instead, Goldman Sachs received $13 billion of the Federal Reserve’s rescue money to close out various contracts it had outstanding with A.I.G. It was one of the biggest beneficiaries of the government rescue.
A spokeswoman for A.I.G., Christina Pretto, dismissed any suggestion that Mr. Liddy’s financial ties to Goldman might have shaped his actions at A.I.G.
“A.I.G. is a large institution that engages in standard commercial activity with companies all over the world,” Ms. Pretto said. “These activities are handled in the normal, day-to-day course of business and rarely, if ever, rise to the level of the C.E.O.”
She said in particular that Mr. Liddy was not involved in the discussions of how to close out the contracts of A.I.G.’s counterparties in derivatives and other forms of trading.
“Discussions regarding these matters were handled exclusively by the Federal Reserve Bank of New York,” Ms. Pretto said.
According to Goldman’s proxy, Mr. Liddy holds 18,244 units of restricted stock, which would be worth about $2.2 million if they were sold at today’s market price. The rest of his holdings are in common stock. Restricted stock cannot be sold without incurring significant tax penalties, but the proxy said that Mr. Liddy’s restricted units would be converted to common shares on May 9.
Officials at the Fed, which initiated the bailout of A.I.G. last September, have said they were not happy about having to pour public resources into private sector companies, but felt that they had to do so to avoid a chain of losses at financial institutions all over the world.
http://www.nytimes.com/2009/04/17/business/17liddy.html?_r=1&em
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NEW DISCOVERY (04-07-09:
GOLDMAN SACHS, BIGGEST BENEFICIARIES OF PAULSON’S BAILOUT
http://www.youtube.com/watch?v=BEumrdHOq0w
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NEW DISCOVERY (03-14-09): More undisclosed conflicts of interest between Steven Guttman, Mary Lou Woo, Judith Neustadter Fuqua, David Farmer, Larry Johnson, Robert Kihune, Sandwich Isles Communications, Bank of Hawaii, Gilbert Tam, Barack Obama, Steve Case, AOL, Dan Case, Punahou School, Citigroup, Robert Rubin, Henry Paulson, The Nature Conservancy, Suzanne Case, Faye Kurren, Goldman Sachs, Kamehameha Schools, University of Hawaii, etc.
March 14, 2009
Ex-CEO of Bankoh considered
for Citigroup board
By David Segal, Honolulu Star-Bulletin
Former Bank of Hawaii Chief Executive Michael O'Neill reportedly is one of the candidates being considered for a position on the board of directors at financially troubled Citigroup Inc.
O'Neill, who turned around Bankoh's lagging fortunes in less than four years before retiring at age 57 in August 2004, was mentioned along with former U.S. Bancorp CEO Jerry Grundhofer and William S. Thompson, former co-chief of bond investment manager Pimco, according to a report in the Wall Street Journal.
The newspaper said Citigroup is expected to announce the board changes next week when it files its proxy statement with the Securities and Exchange Commission. Any nominees would have to be formally approved by the board and voted on by shareholders.
O'Neill took over then-called Pacific Century Financial Corp. from Larry Johnson on Nov. 3, 2000, and in less than four years transformed the bank into a more efficient operation, elevated earnings to record highs and increased shareholder value nearly fourfold.
He also became somewhat of a TV personality with the bank's "Tell Mike" campaign.
Richard Parsons, a one-time University of Hawaii student who took over as chairman last month, is one of the few Citigroup directors with experience in both banking and leading a large company.
Honolulu Star-Bulletin
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CONTINUED AT
http://www.kycbs.net/CV05-00030-Witness-Paulson-Henry.htm
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