Monday, November 10, 2008

Treasury Secretary Paulson Lied to Congress

I don't know how else to interpret this report from WSJ:

Mr. Paulson wanted flexibility to use the money any way he saw fit. Privately, he told his staff that equity injections might be needed. But in public testimony, he all but ruled out that option, describing it as something a government would do for failing institutions, not the solvent ones he wanted to assist.

Of course, as we now know, the money has gone mostly to solvent financial institutions and in the form of equity investments. With Goldman Sachs, Paulson's old firm, and the Robert Rubin wing of Goldman, Citigroup, among the first to get billions from the Treasury.

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