One can find by searching the website of the Federal Reserve Bank of New York an interesting document assigning to Goldman Sachs rights to sell and manage a range of bonds and securities of the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) and Ginnie Mae. This document should be noted by citizens in the context of the credit crisis (see www.newyorkfed.org/aboutthefed/Goldman_Sachs.pdf. The document is an agreement giving Goldman Sachs rights to invest and reinvest for these agencies. However, under section 3 of the document Goldman Sachs is absolved of all responsibility for payment to the government of any interest or other returns. The document is dated April 17th of 2009 but on page 5 under "reports" states that the first report date is to be January 31, 2009 and under Exhibit D has a date of December 2008. It seems as if we have here a cozy arrangement at the height of the crisis to give Goldman Sachs control of hundreds of billions of dollars of government credit instruments at no cost to them and without any liability for return of their use of them. Can someone explain to me how this is good for the taxpayers and perhaps why it was created at the end of the Bush administration. Since it is still on the website it appears to still be in effect. One wonders why?
Anyone?