Interview · moment 5 of 28
The 2008 Bailouts, Lehman Brothers, and Goldman Sachs' Backroom Deal
from Steve Bannon Emergency Podcast | The Tim Dillon Show #433 · #433
5 min
Guest
Bannon details the 2008 financial collapse, describing how Goldman Sachs avoided bankruptcy via a one-line bank holding company designation while ordinary taxpayers and minority homeowners were wiped out with no equity upside.
- Tim identifies 2008 financial collapse and tea party anger as the origin of the Trump age.
- Tim argues the Democrats should have let Goldman Sachs and AIG go bankrupt instead of bailing them out.
- Lehman Brothers' bankruptcy froze the commercial paper market, which funds overnight corporate operations.
- Hank Paulson and Federal Reserve chair Bernanke demanded a trillion-dollar infusion within hours or the financial system would collapse.
- A Republican on the Banking Committee leaked bailout details and shorted the market, making hundreds of thousands.
- Paulson protected Goldman Sachs by converting it to a bank holding company with a single line, letting them borrow at 2% and lend at 4%.
- Working-class and minority homeowners lost their equity when mortgages collapsed, while banks picked up properties for fifty cents on the dollar.
- The government recouped 12% on the bailout while providing zero warrants or guarantees to the American taxpayer.
- The 2008 bailout provided nothing to the American taxpayer, only to the financial institutions themselves.
Goldman SachsAIGHank PaulsonBarack ObamaLehman BrothersGE CapitalGeorge W. BushNancy PelosiCitigroupMerrill Lynch