No sympathy for Goldman Sachs

by Pete Talbot

Goldman Sachs fared much better than Montana Power, the company it helped bankrupt.

For ninety years, the Montana Power Company (MPC) had been a reliable and profitable company. In 1997, it pushed energy deregulation through the Montana legislature, freeing the company to diversify. From 1999 through 2000, on advice from Goldman Sachs, it sold off its power generation and transmission capabilities and entered into the high-risk telecommunications business. In 2003, MPC (renamed Touch America) filed for bankruptcy, having lost around $2.5 billion.

Goldman Sachs, however, received $20 million from MPC for its expertise and counsel during this disastrous transition.

Now it’s 2008 and another bubble has burst. But Goldman Sachs looks like it will weather this one, too. It’s been transformed from an investment bank to a bank holding company to ease investor panic.

This change allows what was the biggest investment bank on Wall Street to help itself to more federal funds and to buy time to stabilize its funding base, according to Bloomberg.com.

Montana Power didn’t have the Fed to fall back on. MPC stockholders got screwed and Montana energy consumers are still feeling the pain.

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  1. one sure way to destroy this country is to keep rewarding bad behavior and to keep punishing good behavior. “Mr Risk” was the nickname for treasury secretary Paulson when he helped architect the very risky investing strategies which now threaten to blow up our economy as CEO of Goldman Sachs. He is now begging for a bailout for his other river boat gambler friends in the investment banking industry. those of us who strive to get ahead and deny ourselves luxuries to pay off debt are now being asked to pay for these felon’s mistakes. As Ceo of Goldman sachs Mr Paulson amassed a personal fortune in excess of 700 million.

    Mr Paulson and his friends are weeds which infest our country. when you want to get rid of weeds you do not open the headgates to flood the field- you let them wither and die- then you set fire to them to get rid of the seeds. then and only then will you achieve healthy growth again.

  2. caroljm36

    I think we have growing bipartisan support to reject this abominable bailout of Wall Street banksters and mortgage fraudsters. Too bad so many CEOs like Mozilo already got their cut, which probably sits safely offshore as we write.

  3. mayor of mayhem

    Carol, we’ve been had. The deal is done. The funds are gone. The only thing left is the purp walk for the cameras. The real criminals never pay the price. Low level lackys plead out. Old rich white guys delay trials for ten more years until they die of natural causes, Remember the Enron guy?
    Problem Bear is right about burning the fields. Unfortunately we have created a society where normal hard work is laughed at by those who manipulate the system and corrupt public officials by passing out slices of pie.

  4. I hope carole is right. if not, this country is too far gone for any president to save




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