In Which I Call Goldman Sachs and Bank of America: Since You Didn’t Need the Money, Can We Have It Back?
Lloyd Blankfein, CEO, Goldman Sachs: “I don’t necessarily think it was necessary at the time, but — and this was said at the time — they were looking ahead at an emerging recession that was going to get worse, and for prudential reasons, it was necessary for the systemic safety and soundness. And as subsequent events have borne out, I think it has provided safety and soundness, and taken some of the risk away from the system.”
Ken Lewis, CEO, Bank of America: “I actually agree. I know at the time we did not feel like we needed the 15 billion. But I think in light of the severity of the recession, and in light of the speed at which the economy deteriorated, I think we have lent more money because we had the TARP funds and that level of capital.
So I did Congress’s job, and called up to see if we’ll be getting our money back anytime soon.
First I called Goldman Sachs here in Philly, who transferred me to their headquarters in New York (212-902-1000).
Riiiiiing….riiiiiing….
“Hello Goldman Sachs, may i help you?”
“Hi,” I began, and introduced myself. I explained what I had read the day before, and cited C-SPAN as the source (sorry Kagro).
“What your boss Mr. Blankfein is saying runs contrary to everything the American people have been told over the past 4 months. No one ever said this was a safety measure or a precaution: everyone, including your employers, said it was an emergency, that Congress had to provide the money immediately, and if the money wasn’t given, we’d all be selling apples like it was 1929 again.”
“Sir, before you go any further, i need to ask you if you’re a member of the media, and who you represent,” the woman said warily.
“I’m not affiliated with anyone but myself,” I responded. “I’m a concerned citizen and taxpayer, and i am calling on my own behalf and motivation.”
“OK,” she said. “So what’s your question?”
“Well like I was saying, the american people have pumped, what is it $15 billion? $20 billion? A HUGE chunk of change. And now, your employer is on national television, testifying to Congress that they didn’t need the money. So my question is twofold: is this accurate, and if they don’t need the money, can we have it back? we could really use that $15 billion or whatever it is right now.”\
“Sir? sir, are you a shareholder in Goldman Sachs?”
“I don’t know,” I said, “but given all the money that taxpaying people like me have put into your company, I think i DO have a significant investment in Goldman.”
“Sir, i understand that you’re angry.” This was interesting, because i never once betrayed any irritation. My tone was not only level, it was downright perky and cheerful.
“I’m not angry,” I said. “I’m just wondering why your CEO is saying he never needed the money, and if he didn’t why doesn’t he give it back? I keep hearing it’s getting used for bonuses, and salaries, and parties, and fancy office furniture, and all sorts of activities that aren’t lending. If you don’t need the money, can we have it back? Because we really really need it right now.”
Silence. Silence. Silence. “Mr. Skwire, can i take your number?”
“Sure. is someone going to get back to me?”
“Well, we’re going to pass on your information.”
“Wait a second.. if you take my number are you going to add me to some list of people you don’t want to hear from?”
“NO!! No, absolutely not. It’s just for our records, and so someone can get back to you if they feel they have some information for you.”
“Well… ok. But i really DO want a callback. We gave your employer an awful lot of money, and if he doesn’t need it…”
“I understand and i agree with you actually,” the woman said.
“You do?” That was incredible.
“yes, I do. it IS an awful lot of money.” That was disappointing: it sounded like she was going to say Goldman should give it back.
“Well, I’ll keep an ear out for your phone call,” i said, not expecting a callback.
My call to bank of America (704-385-5681) was similar, and about as effective. Everyone was deeply concerned about my concerns and promised to pass my comments to the proper person. I’m sure that meant “the waste basket”.
Frankly, there should be more attention paid to these comments by Blankfein and Lewis, both of who have taken the lion’s share of what’s left in the US Treasury.
They say they didn’t need the money, so why did they take it? Why did they say they needed it? What will Congress do to get it back??
February 12th, 2009 at 7:04 pm
[...] makes a phone call. [...]
February 18th, 2009 at 3:01 pm
[...] America admitting they didn’t really need the funds they received in the bailout, called both firms seeking to get his money back. Here’s a taste of the conversation with the woman who answered the phone at Goldman [...]