Wow
By E.P. Heidner Goldman Sachs
When a company’s largest patron has a purse of $240 billion, that patron has the attention
of the corporate chieftains. Goldman Sachs was no different. History suggests that at
least four key senior executives at Goldman Sachs were involved in the 1991 covert
assault on the Soviet economy using the Marcos gold.
• Robert Hormats earned his credentials for covert operations on the staff of the
National Security Council from 1969 to 1977, where he worked for Henry Kissinger.
From there, he moved into a number of key State Department roles. During the late
1980s’s he was a key advisor to George H.W. Bush. From 1982 to 1987 he was vice
president of international corporate finance at Goldman Sachs, and after that became
co-chair of Goldman Sachs International, a position he continue to hold. Subsequent
to the September 1991 bond issuance, it would be Robert Hormats who would be
Yeltsin’s choice to head up the ‘privatization’ of the Soviet economy.127 Hormats presided over the opening ceremony for the Russian privatization group, and left the
work to his staff.
• Robert Rubin – who, with Stephen Friedman, was identified by D’Aqusito as the
Goldman Sachs overseers of the bonds deal, and to whom he appealed when
Goldman Sachs apparently shorted D’Aqusito on his commission. Rubin was co-chairman
of Goldman Sachs at the time, and head of the Russia Department.128
Rubin would shortly thereafter move on to become National Economic Policy
Advisor, Treasury Secretary and Chairman of Citigroup – with the latter two roles
being key to managing the Yamashita/Marcos/Black Eagle Fund. While National
Economic Policy Advisor and Treasury Secretary, Rubin was the key architect of the
deregulation of financial services in 1998 that paved the way for the 2008 crisis. He
was also named by the Marketing Director of the Arkansas Development Finance
Authority (ADFA) as the key Goldman Sachs player in a money laundering deal
involving Sanwa Bank, AIG, Coral Reinsurance and ADFA.(More on this further
down.)
• Stephen Friedman- was identified by D’Aqusito as one of the Goldman Sachs
overseers of the deal, and to whom he appealed when Goldman Sachs apparently
shorted D’Aqusito; Friedman would leave his lucrative position as Chairman at
Goldman Sachs in 1994 to become a public servant on the Board of Fannie Mae from
1996-2002, and under George W Bush would become Chairman of the United States
President's Foreign Intelligence Advisory Board and would take on “a major role in
shaping the chief executive's future economic strategy and policy.” In January, 2008
he moved on to be Chairman of the Federal Reserve Bank of New York, with the
latter role being key to managing the Yamashita/Marcos/Black Eagle Fund.
• Robert Zoellick was Undersecretary of State in 1991, and helped pave the way for the
financial collapse of Gorbachev by providing conditions to encourage his ouster.
Zoellick did so by killing the proposal for a $60 billion food aid package to the
Soviets while serving as the President's personal representative for the G7 Economic
Summits in 1991 and 1992.129 Zoellick was also a cosigner of documents for the
Project for the New American Century, urging war with Iraq. During George H. W.
Bush's presidency, Zoellick served with Secretary of State James Baker as Under
Secretary of State for Economic and Agricultural Affairs, as well as Counselor to the
Department. In August 1992, Ambassador Zoellick was appointed White House
Deputy Chief of Staff and Assistant to the President. Zoellick also served as the
John M. Olin Professor of National Security at the U.S. Naval Academy.
130 Zoellick
had been a managing director at Goldman Sachs.
These four men would lead Goldman Sachs into two decades of control over U.S.
economic policy and financial regulatory power. They would bring with them at least 13
major players from Goldman Sachs, (not to mention a host of up to 27 minor Treasury
officials) and mentor a host of collaborators. However, it was not just the 1991 bond deal
that allowed them to grab hold of the reins of American power. Goldman Sachs’ path to
power in the White house was in fact a dual path, which needs to be clarified. In addition
to the 1991 bond deal with George H.W. Bush as the sponsor, Goldman Sachs was also
laying a foundation to help bring Governor Bill Clinton to power. It did so in three ways.
1. Goldman helped Clinton by arranging financing for the Arkansas Finance
Development Authority. In a rather odd scheme, Goldman Sachs provided
Clinton with $400 million of financing for his Arkansas Development Finance
Authority, which then handed out $90 million in loans.131 For a number of years,
AFDA bond financing was managed through two of Clinton’s close personal
associates. When an investigation into AFDA’s finances was threatened, Clinton
sough to have the AFDA sell its bonds through more traditional channels, such as
Goldman Sachs.132
2. Second, by involving the AFDA in a rather fraudulent stock deal. Between 1987
and 1992, Goldman Sachs proposed and arranged a suspicious $5 million gift for
the Arkansas Finance Development Authority (AFDA), in a transaction which
later was exposed as either a major money-laundering operation or Enron type
arrangement for AIG, which allowed AIG to set up one of its many re-insurance
fronts. These re-insurance shells allowed U.S. corporate owners to avoid taxes
and hide revenue off-shore.133 It is suggested that the $5 million brought the
‘street credibility’ of Clinton and the AFDA to the deal and attracted other major
investors to a deal which was valued well over $60 million. AIG, in its turn,
would end up holding over $1 Billion in AFDA bonds. 134
3. Third, by providing significant campaign contributions to his run at the
Presidency.135
What is critical to understanding these seemingly sideline bits of news is that the ADFA
was used to launder both CIA drug money and Black Eagle fund assets, and that
Goldman Sachs (and AIG) was a facilitator in both cases
• The AFDA was the creation of Governor Clinton, with the legal guidance of Webster
Hubbell. (Hubbell and his father got one of the first loans for $2.85 Million, which
apparently was never repaid.136) The AFDA had unilateral authority to create and sell
bonds backed by the taxpayers of Arkansas, and there was absolutely no regulatory
authority by any state or federal agency to watch its books. Not even the State auditor
was allowed to look at their books. Clinton would appoint the Board Directors at his
leisure. The AFDA had the absolute ability to sell bonds, make loans on the basis of
any criteria chosen, and allow the recipients of those loans to default. It is contended
that many of the recipients of those loans made significant contributions to the
Clinton campaigns. It is also contended that a tens of millions of dollars of the bonds
were purchased with drug money from the CIA-Mena drug operation that supported
the Nicaraguan Contras, in violation of law.137 Accordingly, it has long been
speculated that Clinton, AIG, the CIA and Goldman Sachs were using the ADFA to
launder CIA drug money, and the pay-off for the Clintons was an ability to finance
their political campaigns.
• The bank that provided the funding for the deal proposed by Goldman Sachs was the
Chicago Branch of the Sanwa Bank. The Sanwa Bank is the repository of the Showa
Trust, created with Yamashita gold in the aftermath of World War II by Robert B.
Anderson. It was Secretary of the Navy Robert B. Anderson, Secretary of War
Henry L. Stimson, and Secretary of War John J. McCloy who created the Black
Eagle Trust.138
. Robert Anderson would go on to be a post-War U.S. intelligence
asset, operate the Commercial Exchange Bank in the British West Indies, be convicted of running illegal banking operations and tax evasion, and be sentenced to
prison.139 By the mid 1980s’ the Showa Trust he created was generating over a billion
dollars a year in interest.140
• It was only after several state insurance agencies investigated AIG’s wholly owned
re-insurance operation in Barbados that AIG’s holding of over $1 Billion in ADFA
bonds came to light. Larry Nichols, the Sales and Marketing Director for ADFA has
repeatedly stated he could never locate a single owner of ADFA bonds, and that
during this period, the bonds were a vehicle for laundering CIA drug earnings in
support of the Contras.141 This leads to the conclusion that AIG was picking up these
ADFA bonds as part of the money laundering operation. In the early days, ADFA’s
bond writers were Dan Lasater (indicted in 1986 for drug trafficking) and Jackson
Stephens, the banker that arranged for BCCI to set up operations in the U.S.142 The
actual cash exchanged for the bonds ended up in the Garfield Ridge Trust – a Chicago
Savings and Loan bank.143
• The Garfield Ridge Trust went bankrupt as a result of its bond deals with Lasater. The
U.S. Resolution Trust Corporation (RTC) took over the clean-up, but in this case,
RTC’s attorney’s ‘subcontracted’ the clean-up to Rose Law Firm, where the case was
handled by Hillary Clinton and Vince Foster.
“For several years, RTC's major outside attorneys were the Chicago-based firm of Hopkins &
Sutter. So important was the law firm, RTC's offices were actually ‘inside’ Hopkin's Chicago
office. Hopkins & Sutter, for RTC, arranged for two members of a distant law firm, namely
Hillary Rodham Clinton and Vincent Foster, Jr., of the Rose Law Firm of Little Rock, to work the
clean-up details of a defunct savings and loan of a west suburb of Chicago. The S&L, owned by
former Illinois Governor Dan Walker, Sr., went under in part because of corrupt bond deals done
with the Clinton business crony, Dan Lasater.” 144
• Bill Clinton’s Presidential campaign was funded in a major way by the ADFA,
Jackson Stevens (BCCI front man) and Goldman Sachs.145 In an eerie parallel, just
like Russian oligarch Alexndre Konaykhine* and KGB Generals Kondaurov and
Bobkov used funding from the 1991 bond deal to finance Yeltsin’s successful
campaign, Clinton too came out from the hinterlands and political backwaters (as did
Yeltsin) with illegal CIA funding, facilitated by Goldman Sachs.146 Clinton himself
would be on the verge of declaring personal bankruptcy in 1996 (due to legal fees)
and ten years later somehow be worth over $100 million, without really ‘working.’
*[his account of this period I have started reading here DC]
When the 1991 covert war funded by the September 1991 bond deal is compared to the
political developments in Arkansas in the late 1980s, there are remarkable similarities:
• The use of covert operations funds channeled through bankers to bring relative
political unknowns (to the national political scene) to the Presidency of a global
power;
• The use of Goldman Sachs to lend respectability and credibility to the illegal money
movements;
• The willingness of Goldman Sachs to arrange financing for bonds to support illegal
covert operations;
• The multiple suicides and violent deaths of participants and investigators of those
illegal operations; and
• The massive loan defaults (on payoffs and bribes masquerading as loans or
nontaxable income) forcing the closing of banks and losses to legitimate bank
investors.
It is no wonder that Anne Williamson, in testifying before Congress summarized the
Russian situation with the following words: “In short, the Russian bond market was the
Arkansas Development Finance Authority gone international."147[BOOM!,drop the mic D.C]
In the aftermath of Arkansas and Russian bond deals, Goldman Sachs bankers, in what is
described as a ‘revolving door with the White house’ began to accumulate power by
managing the international financial bailouts.148 Many of them had their careers founded
in U.S. intelligence operations, and virtually all of them would play a key role in leading
the world economy to crisis in 2008. Additional privateers with Goldman Sachs include:
• Hans Reich was also directly involved in the 1991 bond deal, being the person to
whom D’Acquisto addressed his appeal on the theft of his commission. Reich had
joined Goldman Sachs in the Compliance Department three years earlier, and left in
2004 after serving as Vice President in Global Compliance. In leaving Goldman
Sachs, he became head of eastern region National Association of Securities Dealers,
Inc (NASD), now called Financial Industry Regulatory Authority (FINRA) – a quasi
government agency controlled by the SEC with regulations subject to the Federal
Register announcement process.
“NASD is the leading private-sector provider of financial regulatory services, dedicated to
investor protection and market integrity through effective and efficient regulation and
complementary compliance and technology-based services” 149
Under his leadership, FINRA has been the subject of criticism, suggesting it has
reduced regulatory actions and turned a blind eye to abuses by big investment houses.
One report summarized the criticism by noting “data suggest that securities
regulators may have retrenched their efforts to regulate through the use of "novel
theories” rather than penalties.” 150
• Kenneth D. Brody, member of Goldman, Sachs & Co. from 1971 to 1991, where he
was elected partner in 1978 and member of the management committee in 1990. He
became head of Export-Import bank under Clinton. While in charge of the Export-Import
Bank, supported nearly $4 billion of Enron deals in India, Philippines, Turkey
and China..151
• Gary Gensler, former Goldman partner who became undersecretary of the Treasury
for Clinton, argued in 2000 that Congress should rein in Freddie and Fannie.152
“Gensler was a top negotiator for the White House in discussions with Congress in support of the
now-controversial Commodity Modernization Futures Act of 2000. The law largely prevented the
SEC and the CFTC from regulating credit default swaps and other complex instruments that
would later wreak havoc with financial markets. Gensler also played a prominent role in batting
down an effort by the CFTC to regulate these derivatives. .”
153
• CIA Inspector General Frederick P. Hitz, who retired from the CIA and assumed the
Goldman Sachs chair on International Intelligence at Princeton University in May of
1998.154
• Henry Paulson, Secretary of Treasury since May of 2006, had been at Goldman Sachs
from 1974 to 1998 and followed in the footsteps of Rubin and Friedman, a
Chairman/CEO of Goldman Sachs, but was co head of Investment Banking of
Goldman’s in September 1991. Prior to Goldman Sachs, Paulson served as Staff
Assistant to the Assistant Secretary of Defense at the Pentagon (1970 to 1972) and
then worked John Ehrlichman from 1972 to 1973 on President Richard Nixon’s staff,
where he earned his covert operations credentials, and got connected to the Kissinger
crowd. He was a major player in 2004 in getting the reserve ratios of the investment
banks reduced.
• Neel Kashkari, a Vice President at Goldman Sachs before he signed on at the
Treasury Department in July of 2006.
• Faryar Shirzad, former White House Deputy Assistant for International Economic
Affairs to President George W. Bush and the Deputy National Security Advisor for
International Economic Affairs, serving in this role from 2004 to 2006.
• E. Gerald Corrigan, head of the Federal Reserve Bank of New York during the 1991
bond deal.
• William Dudley, Chief Economist, partner and managing director at Goldman Sachs
left to head the Federal Reserve Bank of New York where he became executive vice
president of the Markets Group at the Federal Reserve Bank of New York and
manager of the System Open Market Account for the Federal Open Market
Committee. The Markets Group oversees domestic open market and foreign exchange
trading operations and the provisions of account services to foreign central banks, and
is a key step ion processing ESF funds.
• Reuben Jeffery, the chairman of the Commodity Futures Trading Commission
formerly Under Secretary for Economic, Energy and Agricultural Affairs, serving
previously as the senior economic official at the State Department, and as the Special
Assistant to the President and Senior Director for International Economic Affairs at
the National Security Council. Jeffery also acted as the Representative and Executive
Director of the Coalition Provisional Authority Office (CPA) at the Pentagon, after
having served as an advisor to Ambassador Bremer in Iraq. Prior to his ‘public’
service, Jeffery spent eighteen years working for Goldman, Sachs & Co., where he
was managing partner of Goldman Sachs in Paris (1997-2001) and of the firm’s
European Financial Institutions Group (1992-1997)
• Josh Bolten, whose father (Seymour Bolten) worked in ‘espionage’ at the CIA, served
as Executive Director for Legal and Government Affairs at Goldman Sachs in
London from 1994 to 1999. In the 1990s. Other roles of note plated by Bolten include
working with the Project for the New American Century (PNAC)155 and early in his
career, earning his covert operations credentials under Henry Kissinger as Executive
Assistant to the Director of the Kissinger Commission on Central America.
156
• Robert Steel, the former Goldman vice-chairman, started with Goldman Sachs in
1977, and was responsible for their European “privatization” projects between 1986
and 1994. Steel was appointed Under Secretary for Domestic Finance in the
Department of the Treasury in 2006, and served until July 9, 2008. As undersecretary, he and Henry Paulson -another Goldman Sachs executive “tried to
arrange a $100 Billion “bailout” for Goldman Sachs. 157 He was also a spokesperson
for Goldman Sachs on hedge fund regulatory issues.158
• Randall Fort, is an ex-Goldman director of global security who advises Condoleezza
Rice, the secretary of state. At Goldman Sachs from 1996-2006, he served in several
capacities, including as Director of Global Security, where he managed all physical
and personnel security measures, and also as chief of staff to the President and co-Chief
Operating Officer of the firm. Fort had extensive intelligence background prior
to his role at Goldman-Sachs, including Deputy Assistant Secretary for Functional
Analysis and Research in the Bureau of Intelligence and Research at the Department
of State(1989-93), Special Assistant to the Secretary for National Security and
Director of the Office of Intelligence Support at the Department of the Treasury
(1987-89), Deputy Executive Director, of the President’s Foreign Intelligence
Advisory Board (PFIAB) at the White House (1982-87).
• James Johnson served as president and CEO of quasi-government housing lender
Fannie Mae from 1991 to 1998, prior to which he was a managing director of Lehman
Brothers (1985-1990.) While at Fannie Mae, he was accused of accounting
irregularities that underreported his own income by $14 million. (Report of the
Special Examination of Fannie Mae, May 2006) In a most interesting transition, he
then joined Goldman-Sachs to become a director of their compensation committee.
Goldman Sachs:
Corporate Citizen or Privateer
The assignment of responsibility for the privatization of Russian industry to Goldman
Sachs provides an interesting study in deal making. In comparison, the negotiation and
bidding associated with the privatization of Soviet oil reserves in the Caspian basin took
multiple years. The Soviet – followed by the Russian - bureaucracies haggled with
multiple international corporations over a seven or eight-year period to determine which
western corporations would have the opportunity to control the Soviet portion of the
Caspian oil reserve.159 In comparison, the privatization of the ‘entire’ Soviet economy
was not open for bid, was decided without public scrutiny, and was done in a very short
time. The deal was made in 1991 according to LeMonde, although no announcement of it
can be found in the 1991 press, suggesting its timing was linked to the September 1991
financing arranged by Goldman.160 By then, Hormats and Zoellick had already been
engaged with the CIA in scouting out Soviet industry.
161 Years later, when Goldman
Sachs opened an office in Moscow, they flew in George H.W. Bush for the opening.162
By that time, they had already managed deals worth over a hundred billion – the exact
amount is unreported – earning from 1.5% to 7% of gross revenue on every deal.163
During the privatization, Goldman Sachs was a key player in managing the finances of
oligarchs Mikhail Khodorkovsky and Boris Berezovsky 164 created by a collusion of the
KGB and Riggs Bank. 165
Goldman Sachs was designated as the key deal maker to transform the Soviet system and
rescue the Russian economy, just as their ‘revolving door’ with the U.S. Executive
branch gives them similar responsibility in the United States. The same individuals who headed the ‘rape of Russia’ under the banner of rescue – Hormats, Rubin, Friedman,
Zoellick and Corrigan -are now part of - and mentors to - the group in charge of rescuing
the American economy. The world is all too familiar with their success in Russia:
“In a nutshell, says economist and former government official Yuri Marenvich, ‘Not
only is the people's property being given away free of charge, but it is being
appropriated by the very individuals entrusted to manage their property... [through
setting up] private companies that they themselves headed.’ Through their contacts,
insider knowledge, and resources, Russian banks have been major beneficiaries of
privatization.”166
Knowing how well the executives of Goldman Sachs aided in the rescue of the Russian
economy, the next question becomes: how well did executives of Goldman Sachs serve
the American public in the financial crisis of 2008:
• Goldman Sachs was one of the most active dealers in the subprime mortgage market
(one of the top ten) after they warned Congress that market growth in subprime
mortgages was creating risk to America’s financial institutions; 167
• Goldman Sachs was responsible for the single largest failure of mortgage backed
securities, with 100% of their mortgage backed securities failing; 168
• Goldman Sachs was one the few firms to ‘profit’ from the subprime crisis by selling
subprime mortgage-backed securities short; 169
• Goldman Sachs provided the same investment options to the U.S. Treasury as part of
the bailout as it did to Warren Buffet, but at twice the price, earning a quick profit of
$5 Billion at taxpayer expense;
• Goldman Sachs received a ‘rescue’ package from the U.S. Treasury and proceeded to
increase multi-million dollar compensation to their executives by an additional
27%.170
In the meantime, executives involved in the revolving door between the White house and
Goldman Sachs:
• were responsible for determining the direction of national economic policy for the last
sixteen years;
• were responsible for lobbying against laws that would have provide the regulatory
oversight that may have prevented the crisis;
• were responsible for managing agencies that have failed in their oversight
responsibilities, allowing financial dealings to accumulate into the 2008 crisis;
• were responsible for reduced reserve ratios which enhanced the possibility of a crisis;
• were responsible for enabling the largest insurer in the U.S. (AIG) to hide accounting
errors and fail in it’s re-insurance responsibilities, thus precipitating a taxpayer
bailout of the insurance giant.
In the realm of criminal conviction criteria – Motive, Means and Opportunity –Goldman
Sachs and its executives are guilty of creating this crisis.
Carlyle Group
Very little will ever be known about the Carlyle Group, a privately held partnership with
offices in both Luxembourg and Guernsey, where financials records need never be divulged. Most of the time, even the Carlyle investors do not have a track on what their
investment is.171 Snippets of news of the company are seldom released to the press, and
the lack of transparency only fuels speculation. What is commonly understood is that the
Carlyle Group has a reputation as a group of private equity bankers with the “inside
track.”
“Carlyle was named by The New York Times in 2002 as the biggest defence company in the US, and the largest private defence company in the world, based on its controlling share of ownership in a vast range of defense, intelligence, and communications companies. The Wall Street Journal simply calls it the biggest private investment firm on the planet, bar none. Because of Carlyle’s unusually close connections to defense and intelligence figures, questions about the role of Carlyle in world affairs go deep. So entwined is the Carlyle Group with the Pentagon and other US defense and intelligence agencies and companies, it is widely regarded as an extension of the US government, or at least the National Security Agency, the CIA, and the Pentagon.” 172
The Carlyle Group was created by in 1987, but is widely recognized as starting on the
path to becoming the $89 Billion financial juggernaut it is today when Frank Carlucci left
the Bush administration, with coterie officials from the CIA, the State Department and
Defense Department.173 Frank Carlucci had been Assistant Director of the CIA, National
Security Advisor, and then Ronald Reagan's Defense Secretary. He had the mission of
cleaning up after the Iran-Contra affair in the Reagan administration, and according to
those involved, allowed four of the five supply operations to continue while declaring the
matter closed.174 This was in January of 1989, the same year when George H.W. Bush
was placing key National Security assets in Riggs Bank, and starting the Riggs-Valmet
financial penetration of the Soviet Union. In a world where it is common for departing
senior officials to enter the revolving door between government and the private sector,
the practice of being accompanied by a “phalanx of CIA and Pentagon staffers” is not
common, especially when joining a company that has not been financially successful in
the prior years. This should have been even more so suspicious in Carlyle, where cofounder
Bill Conway had a notorious reputation of being extremely harsh on
‘unnecessary expense.’175 If anyone suspected a ‘covert ops program’ was under way, no
one reported their suspicion. In retrospect, that seems to have been the case.
Under Carlucci, Carlyle’s first Defense industry acquisition was a defense consulting company known as BDM, in September 1990. BDM was the company used by the Iran Contra CIA operation to move illegal weapons between the Israelis and Nicaraguan Contras. It was also a major contractor in the world of “Black Projects” whose budgets remain secret for the benefit of National Security.176,177 The world was witnessing the end of the Cold War at that time, and the stock values of Defense firms were dropping across the board. However, the Carlyle Group chose as its first acquisition, a trusted firm with the capability of discretely conducting illegal activity. By 1994, the Washington Post was reporting that BDM was procuring ex-Soviet/Russian military technology, suggesting that the very discrete privatization of key Soviet Defense assets was already well under way. This of course is speculation, and the unknown ownership of those ex-Soviet defense industries is now protected in the off-shore offices of the Carlyle Group and Group Menatep, which became the major financial power in the Soviet Union after the collapse of Gorbachev. It might only be coincidental that two members on Carlyle’s Advisory Board are Planton Lebedev, the Chairman of Group Menatep and Mikhail Khodorkovsky, the primary Russian front man for the Riggs-Valmet operation and Russian founder –in name – of Menatep. It might also be ‘only coincidental’ that seven of the key players in the execution of the 1991 covert economic war were also members of Carlyle: Fred Malek, George Soros, George H.W. Bush, Robert Gates, Bruce Rappaport, James Baker, and Robert Zoellick.178 The speculation of this report is that in releasing $240 Billion in covert bonds to finance the collapse of the Soviet Union, this small group of politicians and bankers created a U.S. based, private sector vehicle for controlling and profiting from those funds. That vehicle was the Carlyle Group. Moreover, in managing the laundering of the Black Eagle Fund/Yamashita/Golden Lily/Marcos gold, Carlyle became the focal organization for doing that as well. At least six members of Carlyle that were either familiar with the creation of the gold trusts, or were advisors to Barrick Gold included: George H.W. Bush, Richard Helms, Vernon Jordan, Fidel Ramos, Paul Desmarais Sr. and Karl Otto Pohl.
It should seem no less coincidental that “on September 11, 2001… the group had organized a meeting at Washington's Ritz Carlton Hotel with five hundred of its largest investors”.179 George H.W. Bush was in attendance, sitting with Osama Bin Ladin’s brother as the 9/11 terrorists executed the carnage that was to be the cover-up for the laundering of the $240 Billion in covert bonds that seem to have fed the success of the Carlyle Group. In the aftermath of 9/11, there would be a plethora of criticism of Carlyle and its ability to channel the profits from the Iraq War and the Homeland Security Act to individuals with the ‘inside track’.
Little noticed in the aftermath of 9/11 was the beginning of Carlyle’s Asset Management Group ‘second” private equity fund, managed by David Kupperman who was brought in from Goldman Sachs for this task. This fund would seek opportunities in new “areas of alternative asset management” also known as the “secondary, or resale, private equity market.”180 The main customers (buyers) would be “banks and pension funds.”181 The original fund was begun in 2001. By 2003, the ‘Asset Management Group’ was being spun-off in an employee buyout, with Carlyle maintaining a 40% interest.182 While the investments of the fund were not publicized, their direction should have been clear.183 The Carlyle fund was renamed Rock Creek Potomac. One of the General Partners of Rock Creek, John Sites (who previously created the mortgage department at Bears Stearns), was named to the Fannie Mae Board of Directors.
Carlyle Capital Corporation (CCC) was Carlyle’s second effort to facilitate the sub prime mortgage market. This effort was unique in the history of the firm, and was created as a publicly owned corporation. Its specialty was mortgage financing. CCC was well positioned with relationships with Fannie Mae and Freddie Mac. A long time Carlyle advisor – Robert Zoellick had been Executive Vice President at Fannie Mae between 1993 and 1997. David Moffet, who had been CEO at Freddie Mac joined Carlyle as well. The Carlyle Group’s total exposure when CCC declared bankruptcy in 2007 was $150 million, although the Carlyle Group loaned the company an additional $200 million in efforts to save it (or the reputation of the Group)– for naught. In this situation “The naughty Capital Corporation told shareholders it had no subprime exposure. But it did. It said all the exposure was Triple A rated. But it wasn’t. It said liquidity was ample. But it isn’t.”184
In the aftermath of September 11th, the Carlyle Group made two quiet efforts to facilitate the subprime mortgage market. In both cases they limited in unprecedented ways their exposure to the risk. Their company misrepresented the investments. These types of actions suggest that those in control of Carlyle had the inside track on the future of the subprime market, and did not want their personal fortunes tied up with the subprime market. Once again, individuals close to the original September 1991 bond deal seem to be immune to the meltdown of 2008.
1. One possible scenario is that these bankers have been burdened with requests from multiple Presidents to manage these illegal funds in the most patriotic manner. George H.W. Bush may have seen the funds as being best used to end the Cold War; Clinton may have seen them as best used to resolve multiple financial crises; George W. Bush may have seen them as best used to build a bigger tax base for supporting his war and energy policies, and thus forced the funds into housing sector of the economy in a failed effort to grow the economy. In all three cases, the President could view it as his own little slush fund for initiatives he could not get Congress to support. Naturally, key Congressmen were appraised, but for reasons “of National Security” it all needed to be done without ‘transparency.’
2. A second scenario suggests that after 1991 and the bailouts of the 1990s; the President and Secretary of Treasury lost whatever control over the funds they might have had. Most of the funds were now laundered into securities managed by Goldman Sachs – who has created a revolving door between itself, the Treasury and the Federal Reserve.185 John Reed, the fund ‘caretaker’ had served his useful role, and was allowed to be removed from Citibank without having a groomed protégé take over, as had his predecessors Moore and Wriston. In this scenario, the investment bankers – and not the bullion bankers - would now be the chief decision-makers, and attempting to maximize their profits on money and accounts that technically should not exist. Rather than being ‘good citizen’ efforts by a President to support allies, the bailouts of Mexico, Brazil, Asia and LTCM should be seen as serving only to save the earnings of the very banks that have failed to manage their risks.186 There is no doubt that the bankers across the world that have been holding this contraband gold have denied any and every request by the various depositors’ relatives to claim the gold.187 The bankers view the illicit treasure as “theirs.” As the nominal account holders died, the banks transferred the accounts to offshore banks, where the original account owners descendents could not trace them, and there was no mandatory requirement for banks to hand over unclaimed funds to the state. It is important to understand that the initial decisions to keep this gold, knowing it was illegal, was made by bankers that temporarily ‘volunteered’ to public service. The second round of decisions to augment the fund with the stolen Marcos gold was made by men who have over and over again shown their disdain for the Constitution of the United States, and now wanted to enrich themselves just as the old school, mainstream bankers had, and have become bankers themselves (Carlyle Group, Blackrock, Thayer Equity, Holt, Menatep Group, Riggs/PNC).
3. A third scenario seems more likely. Under this scenario, the bankers fall into two categories -old money bankers (industrial banking families) and new money bankers (Privateer bankers) - splitting the illegal profits and assets that the U.S. Government supposedly cannot rightfully claim. This partnership condoned the murder of 3,000 people on September 11, 2001 to keep their secret and past crimes hidden. Being the very same group of individuals that orchestrated the collapse of the Soviet Union in 1991, this group has planned and executed the collapse of U.S. Treasury, in a manner not unlike the way they dismantled the Soviet Treasury. They have crashed the stock market so they can discretely buy up for a mere fraction of the value, key American industries, just as they did in the Soviet Union. This partnership of old and new money deliberately crashed the American economy with the following conscious decisions.
• This partnership of old and new money opened the way for petty criminals and thieves to sell hundreds of billions of dollars of high risk mortgages, so that white collar criminals could peddle them to unsuspecting fund managers as triple A rated securities. This left the pension funds holding the bulk of the ‘toxic waste’ while bankers took the cream.
• This partnership deliberately prevented regulatory oversight of those activities through court action, illegal lobbying, and sweetheart loans to regulators;
• This partnership regularly misled the public about the risk they were allowing to be created and absorbed under their watch;
• This partnership deliberately ‘hid’ the risk in major government sponsored enterprises (GSEs) such as (Fannie Mae, Freddie Mac, AIG) through ongoing accounting misrepresentation over multiple years;
• This partnership protected their own financial assets from risk before letting the public understand what was happening;188
. This partnership is currently engaged in ensuring the future failure of the Treasury by convincing the U.S. Congress to committing $700 billion as a first installment to prevent a credit crisis – without any hard evidence. It was an argument paralleled only by the ‘weapons of mass destruction’ stories the Bush administration used to convince Americans to fund a trillion dollars in revenues to the Defense and Energy Industries. Major news periodicals and analysts at the Minneapolis Federal Reserve Bank said there was no evidence of a credit crisis.189
• This partnership is using the Treasury injections for personal and corporate profit rather than crisis mitigation. Several banks are using the injections to fund mergers and acquisitions (PNC, Chase)190 , 191; some are spreading the story ‘we did not want the money, but took it anyway’(USB)192; Goldman Sachs received a 50% ‘gift’ in it’s $10 billion injection 193-putting $5 Billion to profit; and others have used the bailout funds to award themselves $70 billion in personal compensation bonuses.194
• This partnership’s new membership has been groomed and directed by the very same individuals who crashed the Soviet economy and now hold a large portion of former Soviet wealth in discrete, off-shore, non-transparent holding companies. Russian President Putin has spent the last decade trying to reclaim Russia’s national wealth under various laws, and found that the only successful way was through the tax evasion laws – the same strategy selected by the FBI when it needed to close down the John Dillinger crime operation.
• This partnership represents a socio-economic class who view themselves as elite, special, above-the-law and outside of the law. In this respect, they are true, clinical sociopaths, not unlike the individuals who created the Third Reich and Stalin’s authoritarian regime.195
The group responsible for this crisis is a tight knit association of bankers and government “intelligence” officials who have formed a common bond around defending their personal definition of American democracy abroad. They claim to defend the ideals of democracy, capitalism and the American way of life while simultaneously murdering and financially raping their fellow citizens in the name of National Security and profit. Somehow, these crimes are rationalized as collateral damage, and being for the ‘greater good of America,’ which now seems exposed as the empty promise it has always been.196 The argument that needs to now be made is: rather than being ‘over zealous patriots,’ have these men committed treason? Have they violated international treaty law? If the actions taken against the Soviet Union in 1991 can be justified as part of an ongoing Cold War, with economic acts being a legally sanctioned method of war by Executive Order, is not turning those same economic acts on the U.S. economy then an act of war against the U.S., hence treason? If treason is considered too radical of a conclusion, then consider this insider recollection about Frank Carlucci, the executive who headed up the dark side of the Carlyle Group.
“In the late 1980s Iran-Contra whistleblower Gene Wheaton expanded on what General Walters and his associates had been doing since the 1960s. Wheaton had been a former police officer, military criminal investigator, and security contractor. He also used to be a counter-terrorism consultant for the Rockwell Corporation, the Saudi Royal Family, and the Shah of Iran, among other things. All this was before he was brought into the "inner circle", which turned out to consist of people he didn't want anything to do with. In 2002 Wheaton recalled: In the late 70s, in fact, after Gerry Ford lost the election in ’76 to Jimmy Carter, and then these guys became exposed by Stansfield Turner and crowd for whatever reason ... there were different factions involved in all this stuff, and power plays ... Ted Shackley and Vernon Walters and Frank Carlucci and Ving West and a group of these guys used to have park-bench meetings in the late 70s in Mclean, Virginia so nobody could overhear their conversations. They basically said, "With our expertise at placing dictators in power," I’m almost quoting verbatim one of their comments, "why don’t we treat the United States like the world’s biggest banana republic and take it over?" And the first thing they had to do was to get their man in the White House, and that was George Bush..."197
It seems as though a plan was born.
documents and charts plus footnotes start at page 32
https://wikispooks.com/w/images/2/24/Collateral_Damage_-_part_2.pdf
“Carlyle was named by The New York Times in 2002 as the biggest defence company in the US, and the largest private defence company in the world, based on its controlling share of ownership in a vast range of defense, intelligence, and communications companies. The Wall Street Journal simply calls it the biggest private investment firm on the planet, bar none. Because of Carlyle’s unusually close connections to defense and intelligence figures, questions about the role of Carlyle in world affairs go deep. So entwined is the Carlyle Group with the Pentagon and other US defense and intelligence agencies and companies, it is widely regarded as an extension of the US government, or at least the National Security Agency, the CIA, and the Pentagon.” 172
Under Carlucci, Carlyle’s first Defense industry acquisition was a defense consulting company known as BDM, in September 1990. BDM was the company used by the Iran Contra CIA operation to move illegal weapons between the Israelis and Nicaraguan Contras. It was also a major contractor in the world of “Black Projects” whose budgets remain secret for the benefit of National Security.176,177 The world was witnessing the end of the Cold War at that time, and the stock values of Defense firms were dropping across the board. However, the Carlyle Group chose as its first acquisition, a trusted firm with the capability of discretely conducting illegal activity. By 1994, the Washington Post was reporting that BDM was procuring ex-Soviet/Russian military technology, suggesting that the very discrete privatization of key Soviet Defense assets was already well under way. This of course is speculation, and the unknown ownership of those ex-Soviet defense industries is now protected in the off-shore offices of the Carlyle Group and Group Menatep, which became the major financial power in the Soviet Union after the collapse of Gorbachev. It might only be coincidental that two members on Carlyle’s Advisory Board are Planton Lebedev, the Chairman of Group Menatep and Mikhail Khodorkovsky, the primary Russian front man for the Riggs-Valmet operation and Russian founder –in name – of Menatep. It might also be ‘only coincidental’ that seven of the key players in the execution of the 1991 covert economic war were also members of Carlyle: Fred Malek, George Soros, George H.W. Bush, Robert Gates, Bruce Rappaport, James Baker, and Robert Zoellick.178 The speculation of this report is that in releasing $240 Billion in covert bonds to finance the collapse of the Soviet Union, this small group of politicians and bankers created a U.S. based, private sector vehicle for controlling and profiting from those funds. That vehicle was the Carlyle Group. Moreover, in managing the laundering of the Black Eagle Fund/Yamashita/Golden Lily/Marcos gold, Carlyle became the focal organization for doing that as well. At least six members of Carlyle that were either familiar with the creation of the gold trusts, or were advisors to Barrick Gold included: George H.W. Bush, Richard Helms, Vernon Jordan, Fidel Ramos, Paul Desmarais Sr. and Karl Otto Pohl.
It should seem no less coincidental that “on September 11, 2001… the group had organized a meeting at Washington's Ritz Carlton Hotel with five hundred of its largest investors”.179 George H.W. Bush was in attendance, sitting with Osama Bin Ladin’s brother as the 9/11 terrorists executed the carnage that was to be the cover-up for the laundering of the $240 Billion in covert bonds that seem to have fed the success of the Carlyle Group. In the aftermath of 9/11, there would be a plethora of criticism of Carlyle and its ability to channel the profits from the Iraq War and the Homeland Security Act to individuals with the ‘inside track’.
Little noticed in the aftermath of 9/11 was the beginning of Carlyle’s Asset Management Group ‘second” private equity fund, managed by David Kupperman who was brought in from Goldman Sachs for this task. This fund would seek opportunities in new “areas of alternative asset management” also known as the “secondary, or resale, private equity market.”180 The main customers (buyers) would be “banks and pension funds.”181 The original fund was begun in 2001. By 2003, the ‘Asset Management Group’ was being spun-off in an employee buyout, with Carlyle maintaining a 40% interest.182 While the investments of the fund were not publicized, their direction should have been clear.183 The Carlyle fund was renamed Rock Creek Potomac. One of the General Partners of Rock Creek, John Sites (who previously created the mortgage department at Bears Stearns), was named to the Fannie Mae Board of Directors.
Carlyle Capital Corporation (CCC) was Carlyle’s second effort to facilitate the sub prime mortgage market. This effort was unique in the history of the firm, and was created as a publicly owned corporation. Its specialty was mortgage financing. CCC was well positioned with relationships with Fannie Mae and Freddie Mac. A long time Carlyle advisor – Robert Zoellick had been Executive Vice President at Fannie Mae between 1993 and 1997. David Moffet, who had been CEO at Freddie Mac joined Carlyle as well. The Carlyle Group’s total exposure when CCC declared bankruptcy in 2007 was $150 million, although the Carlyle Group loaned the company an additional $200 million in efforts to save it (or the reputation of the Group)– for naught. In this situation “The naughty Capital Corporation told shareholders it had no subprime exposure. But it did. It said all the exposure was Triple A rated. But it wasn’t. It said liquidity was ample. But it isn’t.”184
In the aftermath of September 11th, the Carlyle Group made two quiet efforts to facilitate the subprime mortgage market. In both cases they limited in unprecedented ways their exposure to the risk. Their company misrepresented the investments. These types of actions suggest that those in control of Carlyle had the inside track on the future of the subprime market, and did not want their personal fortunes tied up with the subprime market. Once again, individuals close to the original September 1991 bond deal seem to be immune to the meltdown of 2008.
Motive:
Profit, Economic Growth or Treason
There are several possible interpretations of the post 9/11 economic events: 1. One possible scenario is that these bankers have been burdened with requests from multiple Presidents to manage these illegal funds in the most patriotic manner. George H.W. Bush may have seen the funds as being best used to end the Cold War; Clinton may have seen them as best used to resolve multiple financial crises; George W. Bush may have seen them as best used to build a bigger tax base for supporting his war and energy policies, and thus forced the funds into housing sector of the economy in a failed effort to grow the economy. In all three cases, the President could view it as his own little slush fund for initiatives he could not get Congress to support. Naturally, key Congressmen were appraised, but for reasons “of National Security” it all needed to be done without ‘transparency.’
2. A second scenario suggests that after 1991 and the bailouts of the 1990s; the President and Secretary of Treasury lost whatever control over the funds they might have had. Most of the funds were now laundered into securities managed by Goldman Sachs – who has created a revolving door between itself, the Treasury and the Federal Reserve.185 John Reed, the fund ‘caretaker’ had served his useful role, and was allowed to be removed from Citibank without having a groomed protégé take over, as had his predecessors Moore and Wriston. In this scenario, the investment bankers – and not the bullion bankers - would now be the chief decision-makers, and attempting to maximize their profits on money and accounts that technically should not exist. Rather than being ‘good citizen’ efforts by a President to support allies, the bailouts of Mexico, Brazil, Asia and LTCM should be seen as serving only to save the earnings of the very banks that have failed to manage their risks.186 There is no doubt that the bankers across the world that have been holding this contraband gold have denied any and every request by the various depositors’ relatives to claim the gold.187 The bankers view the illicit treasure as “theirs.” As the nominal account holders died, the banks transferred the accounts to offshore banks, where the original account owners descendents could not trace them, and there was no mandatory requirement for banks to hand over unclaimed funds to the state. It is important to understand that the initial decisions to keep this gold, knowing it was illegal, was made by bankers that temporarily ‘volunteered’ to public service. The second round of decisions to augment the fund with the stolen Marcos gold was made by men who have over and over again shown their disdain for the Constitution of the United States, and now wanted to enrich themselves just as the old school, mainstream bankers had, and have become bankers themselves (Carlyle Group, Blackrock, Thayer Equity, Holt, Menatep Group, Riggs/PNC).
3. A third scenario seems more likely. Under this scenario, the bankers fall into two categories -old money bankers (industrial banking families) and new money bankers (Privateer bankers) - splitting the illegal profits and assets that the U.S. Government supposedly cannot rightfully claim. This partnership condoned the murder of 3,000 people on September 11, 2001 to keep their secret and past crimes hidden. Being the very same group of individuals that orchestrated the collapse of the Soviet Union in 1991, this group has planned and executed the collapse of U.S. Treasury, in a manner not unlike the way they dismantled the Soviet Treasury. They have crashed the stock market so they can discretely buy up for a mere fraction of the value, key American industries, just as they did in the Soviet Union. This partnership of old and new money deliberately crashed the American economy with the following conscious decisions.
• This partnership of old and new money opened the way for petty criminals and thieves to sell hundreds of billions of dollars of high risk mortgages, so that white collar criminals could peddle them to unsuspecting fund managers as triple A rated securities. This left the pension funds holding the bulk of the ‘toxic waste’ while bankers took the cream.
• This partnership deliberately prevented regulatory oversight of those activities through court action, illegal lobbying, and sweetheart loans to regulators;
• This partnership regularly misled the public about the risk they were allowing to be created and absorbed under their watch;
• This partnership deliberately ‘hid’ the risk in major government sponsored enterprises (GSEs) such as (Fannie Mae, Freddie Mac, AIG) through ongoing accounting misrepresentation over multiple years;
• This partnership protected their own financial assets from risk before letting the public understand what was happening;188
. This partnership is currently engaged in ensuring the future failure of the Treasury by convincing the U.S. Congress to committing $700 billion as a first installment to prevent a credit crisis – without any hard evidence. It was an argument paralleled only by the ‘weapons of mass destruction’ stories the Bush administration used to convince Americans to fund a trillion dollars in revenues to the Defense and Energy Industries. Major news periodicals and analysts at the Minneapolis Federal Reserve Bank said there was no evidence of a credit crisis.189
• This partnership is using the Treasury injections for personal and corporate profit rather than crisis mitigation. Several banks are using the injections to fund mergers and acquisitions (PNC, Chase)190 , 191; some are spreading the story ‘we did not want the money, but took it anyway’(USB)192; Goldman Sachs received a 50% ‘gift’ in it’s $10 billion injection 193-putting $5 Billion to profit; and others have used the bailout funds to award themselves $70 billion in personal compensation bonuses.194
• This partnership’s new membership has been groomed and directed by the very same individuals who crashed the Soviet economy and now hold a large portion of former Soviet wealth in discrete, off-shore, non-transparent holding companies. Russian President Putin has spent the last decade trying to reclaim Russia’s national wealth under various laws, and found that the only successful way was through the tax evasion laws – the same strategy selected by the FBI when it needed to close down the John Dillinger crime operation.
• This partnership represents a socio-economic class who view themselves as elite, special, above-the-law and outside of the law. In this respect, they are true, clinical sociopaths, not unlike the individuals who created the Third Reich and Stalin’s authoritarian regime.195
The group responsible for this crisis is a tight knit association of bankers and government “intelligence” officials who have formed a common bond around defending their personal definition of American democracy abroad. They claim to defend the ideals of democracy, capitalism and the American way of life while simultaneously murdering and financially raping their fellow citizens in the name of National Security and profit. Somehow, these crimes are rationalized as collateral damage, and being for the ‘greater good of America,’ which now seems exposed as the empty promise it has always been.196 The argument that needs to now be made is: rather than being ‘over zealous patriots,’ have these men committed treason? Have they violated international treaty law? If the actions taken against the Soviet Union in 1991 can be justified as part of an ongoing Cold War, with economic acts being a legally sanctioned method of war by Executive Order, is not turning those same economic acts on the U.S. economy then an act of war against the U.S., hence treason? If treason is considered too radical of a conclusion, then consider this insider recollection about Frank Carlucci, the executive who headed up the dark side of the Carlyle Group.
“In the late 1980s Iran-Contra whistleblower Gene Wheaton expanded on what General Walters and his associates had been doing since the 1960s. Wheaton had been a former police officer, military criminal investigator, and security contractor. He also used to be a counter-terrorism consultant for the Rockwell Corporation, the Saudi Royal Family, and the Shah of Iran, among other things. All this was before he was brought into the "inner circle", which turned out to consist of people he didn't want anything to do with. In 2002 Wheaton recalled: In the late 70s, in fact, after Gerry Ford lost the election in ’76 to Jimmy Carter, and then these guys became exposed by Stansfield Turner and crowd for whatever reason ... there were different factions involved in all this stuff, and power plays ... Ted Shackley and Vernon Walters and Frank Carlucci and Ving West and a group of these guys used to have park-bench meetings in the late 70s in Mclean, Virginia so nobody could overhear their conversations. They basically said, "With our expertise at placing dictators in power," I’m almost quoting verbatim one of their comments, "why don’t we treat the United States like the world’s biggest banana republic and take it over?" And the first thing they had to do was to get their man in the White House, and that was George Bush..."197
It seems as though a plan was born.
documents and charts plus footnotes start at page 32
https://wikispooks.com/w/images/2/24/Collateral_Damage_-_part_2.pdf
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