Bill Clinton Skeptical that Goldman Sachs Violated the Law, Political Contributions, the Gift that Keeps on Giving

Shock of shocks. The President that signed the Gramm-Leach-Bliley Act (a.k.a. repeal of Glass-Steagall a.k.a congressional endorsement for Wall Street Investment Banks to Pillage and Plunder) states “I’m not at all sure they violated the law, but I do believe that there was no underlying merit to the transaction and that’s what I think we need to look at”.

Bill who accepted the misguided advice of Robert Rubin and Larry Summers regarding not regulating financial derivative products recently threw both of the under the bus. April 18, 2010 on ABC’s “This Week.” “I think they were wrong and I think I was wrong to take” their advice.”

Today, Bill shares his infinite wisdom about how Wall Street and specifically Goldman Sachs operates. Yes America, $800,000+ is the gift that keeps on giving. Let's see: Bill Clinton's formal attorney experience...ZIP. Experience within the SEC...ZIP. Experience with credit default swaps, collateralized debt obligations or synthetic derivative products...ZIP. Experience working with a Wall Street Investment Bank...TBD.

By Brian Faler
April 29 (Bloomberg) -- Former President Bill Clinton said he’s skeptical that Goldman Sachs Group Inc. broke the law, while adding that the U.S. government’s lawsuit against the firm underscores the growth of financial transactions with “no underlying merit.”

“I’m not at all sure they violated the law, but I do believe that there was no underlying merit to the transaction and that’s what I think we need to look at,” he said yesterday about the Securities and Exchange Commission suit filed earlier this month alleging Goldman Sachs misled investors in a mortgage-linked investment.

The SEC suit alleges that Goldman Sachs created and sold collateralized debt obligations in 2007 based on subprime mortgages without disclosing that Paulson & Co., the hedge fund run by billionaire John Paulson, helped select the underlying securities. Goldman Sachs also didn’t disclose that Paulson was betting against the assets, the SEC said.

Goldman has denied any wrongdoing and is fighting the allegations. Paulson wasn’t accused of wrongdoing.

“I don’t think it is self-evident” Goldman Sachs broke the law because investors “had access to the same information” as Paulson, Clinton said at a conference in Washington focusing on the federal government’s financial picture. “What is evident to me is that, whoever wins and loses in that deal, there is no larger purpose for the American economy -- nobody really benefits except the person that wins the gamble.”

Goldman Sachs employees, retirees and their families gave political contributions totaling $682,690 to Hillary Clinton and $140,659 to Bill Clinton between 1989-2010, according to the Center for Responsive Politics.

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