Author Topic: Goldman Sachs/HP attempts hostile takeover of California w/ Whitman & Fiorina  (Read 26813 times)

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Offline Dig

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Whitman's ties to financial giant Goldman Sachs
Lance Williams,Carla Marinucci
Sunday, April 11, 2010

Meg Whitman, a former board member of Goldman Sachs, would sell her stock in the investment bank and put the rest of her portfolio into a blind trust if elected governor, her campaign lawyer says.

Candidate Meg Whitman touts her experience at eBay, the online auction house that made her rich, but her career and personal fortune are entwined with another company: the Goldman Sachs investment bank, a major player in public finance in the state she wants to lead.

Whitman's relationship with the giant Wall Street firm - as investor, corporate director and recipient of both insider stock deals and campaign donations - could pose conflicts of interest if the Republican front-runner is elected governor of California, critics say.

From 1998 to 2002, while she was CEO of eBay, Whitman helped steer millions of dollars of her company's investment banking business to Goldman, court records show.

In 2001, Goldman put Whitman on its corporate board, paying her an estimated $475,000 for little more than a year of part-time service. The company also gave her insider access to the initial public offerings of hot stocks worth millions, according to the records.

Whitman left the board in 2002 after she was singled out in a congressional probe of bond underwriters and "spinning" - a financial maneuver, now banned, in which Goldman and other firms allegedly traded access to hot IPOs for bond business. Whitman later settled a shareholder lawsuit related to profits she and other execs made from buying the IPOs.

In recent years, Whitman has kept part of her fortune, estimated by Forbes magazine to be $1.2 billion, in investment funds managed by Goldman, her financial disclosure report indicates. For her campaign, she's received $105,500 in donations from Goldman executives, state records show.
Major player in finance

Meanwhile, Goldman is a major player in California state finance. It has been the underwriter of $78.9 billion in bonds issued by the state since 2006, records show, second only to Merrill Lynch, now a division of Bank of America, which was underwriter of $79.3 billion in the same period.

Goldman was underwriter of more than 2 percent of the bonds issued by the state in the past five years, the records show. State pension funds, meanwhile, have invested more than $1.3 billion with Goldman.

The firm has sought other state business as well. In 2007, Goldman and the now-defunct Lehman Bros. investment bank pitched Gov. Arnold Schwarzenegger on an ambitious plan to boost state revenue by privatizing the California Lottery, according to news reports.

Goldman also urged the governor to raise money by selling EdFund, the state agency that insures student loans. Schwarzenegger expressed interest, but the ideas weren't carried out.

With Goldman active on so many state issues, Whitman would face "a pile of potential conflicts of interest" if elected governor, said Doug Heller, spokesman for Consumer Watchdog of Santa Monica.

Whitman declined to be interviewed for this story, but her campaign lawyer said conflict concerns were overblown. If elected, Whitman will sell her Goldman stock and put the rest of her portfolio, including her Goldman-managed investments, into a blind trust, the lawyer, Tom Hiltachk, said in a written statement.

That will "put further distance between Meg's assets and her duties as governor," he wrote. Meanwhile, Whitman will "scrupulously" follow state law to avoid conflicts, he wrote.
Goldman could have 'access'

Eric Jackson, founder of the Ironfire Capital hedge fund in Florida and an advocate of corporate reform, said concerns could arise even after Whitman sold her Goldman holdings. Given its long relationship with Whitman, Goldman probably would enjoy "access, and being able to make their case in terms of lobbying or certain outcomes that benefit them," he said.

Whitman's association with Goldman also raises questions about her values and judgment, some Wall Street reformers say.

While Whitman was on Goldman's board, she served on the compensation committee, which approved multimillion-dollar bonus packages for then-CEO Henry Paulson and his top aides.

Also during Whitman's service, Goldman invested $140 billion into mortgage-backed securities. Years after she left, the firm sold off $135 billion in bonds tied to the risky home loans, according to published accounts, essentially unloading the assets before the market plunged and sent the nation into economic crisis.

Goldman's dealings in the ramp-up to world recession have made the firm a lightning rod for criticism, especially as it has rebounded with record profits while the national unemployment rate hovers around 10 percent.
Wall Street's spiral

Whitman's campaign attorney said it was "plainly ridiculous" to hold Whitman responsible for the problems of Wall Street because she spent 15 months on Goldman's board.

"Making Meg culpable for the culture of Wall Street ... is a stretch too far," Hiltachk wrote. He didn't respond to questions about decisions she made on the Goldman board.

In recent years, Whitman has only occasionally referred to her time at Goldman Sachs.

During the 2002 IPO "spinning" controversy, Whitman denied wrongdoing, telling eBay employees in a memo that Goldman had offered her stock deals because she was a private client of the firm, not in exchange for eBay's bond business.

In her autobiography, "The Power of Many," Whitman said she quit Goldman's board because CEO Paulson wanted directors only to "rubber stamp" decisions he had already made.

Bill Whalen, a fellow at Stanford University's Hoover Institution and a former adviser to Gov. Pete Wilson, warned that Democrats would face blowback if they attempted "to use Goldman as a bludgeon" against Whitman in the governor's race.

"There's a long list of Democrats who have ties to Goldman," Whalen said, starting with former state Treasurer Kathleen Brown, who is a Goldman executive in Los Angeles.

Her brother, Democrat Jerry Brown, the former California governor who is expected to face Whitman in November if she wins the June 8 primary election, has no Goldman investments, campaign manager Steve Glazer said.

State Insurance Commissioner Steve Poizner, Whitman's rival for the GOP gubernatorial nomination, borrowed $500,000 from Goldman in 2003 for an unsuccessful campaign for the state Assembly, records show.
Underwriter's role

Based on Wall Street but with offices around the world, Goldman Sachs underwrites stocks and bonds, provides financing for business mergers, and manages the money of high-wealth individuals, corporations and even governments.

In 1998, shortly after she became CEO at eBay, Whitman and the eBay board hired Goldman Sachs to underwrite a $72.5 million IPO. The next year, Goldman was hired again, this time for an additional sale of $1.25 billion worth of stock.

Also in 1999, Whitman and her husband, Stanford School of Medicine neurosurgery Professor Griffith Harsh, began investing their personal wealth with Goldman, her lawyer said. In July 2002, eBay hired Goldman again, this time to handle eBay's $1.5 billion acquisition of the online payment business PayPal.

Goldman was paid more than $8 million for its work at eBay, wrote Delaware Judge William Chandler, who later presided over a shareholders' lawsuit concerning the IPOs.

More important, Goldman also was able to buy 1.2 million shares of eBay stock at the IPO price of $18, the judge wrote in an opinion on the case. A year later, the stock was trading at $175 - a bump of $188.4 million.

While seeking eBay's underwriting business, Goldman repeatedly gave Whitman and three other eBay officials the chance to buy IPO stock of other firms Goldman was taking public. Whitman bought more than 100 offerings, according to the judge's account.

The executives "were able to flip these investments into instant profit," the judge wrote. "Whitman sold these equities in the open market and reaped millions of dollars in profit."
Joining Goldman's board

By the time of the PayPal deal, Whitman was also a Goldman director. Appointed in October 2001, she was paid a package of cash and stock options for attending board and committee meetings. An expert who reviewed the pay package for this report said Whitman received the equivalent of $475,000 for attending perhaps a dozen meetings over the 15 months she was on the board.

When she was on the board's compensation committee, it twice signed off on big bonus packages for Paulson and four other top executives, including then-Vice Chairman Lloyd Blankfein, now CEO.

Paulson's 2001 bonus package was $11.5 million, more than 19 times his salary, records show. The company earned $2.3 billion that year. In her two years on the committee, the five men were paid $79 million in bonuses.

The trend continued as Goldman's profits soared in the intervening years. In January, under pressure from shareholders' lawsuits, Goldman agreed to slash its bonus pool and cut back on pay by about 15 percent.

Whitman left the board soon after the IPO "spinning" controversy became public. In October 2002, Rep. Michael Oxley, R-Ohio, chair of the House Financial Services Committee, identified 21 business executives who he said had obtained IPOs from Goldman and two other firms in exchange for bond business. Oxley called the transactions "corrupt."
Settling 'spinning' complaint

The executives he named included William Clay Ford of Ford Motor Co., Enron CEO Kenneth Lay, Yahoo founder Jerry Yang - and Whitman.

Goldman denied wrongdoing but, months later, paid $110 million to settle its part of a Securities and Exchange Commission complaint that accused 10 Wall Street firms of misleading customers with biased stock research. As part of that settlement, "spinning" of IPOs was banned, records show.

For her part, Whitman insisted she had done nothing illegal or unethical, saying she was the victim of "the climate of finger pointing and scandal," that accompanied the bursting of the dot-com bubble. She made a profit of $1.78 million on the IPOs, she told eBay employees. It was "a very small fraction of my investment portfolio," she wrote in her book.

Nevertheless, two shareholder groups sued Whitman and the other eBay insiders, contending that money from flipping the IPOs should have gone to eBay. Eventually, Whitman and the other officials paid about $3 million to eBay to settle the suits. Goldman paid $395,000 of the settlement, she wrote in her book.

Goldman declined to comment for this story.
Whitman's investments

Today, Whitman's connection to Goldman endures through her investments. The financial report she filed as a candidate requires her only to give a general estimate of the value of her investments. Her lawyer declined to disclose the total value of her Goldman portfolio.

Still, the documents show she has a multimillion-dollar stake in 21 different investment funds managed by Goldman. Most are private equity funds open only to investors who can put millions into a single fund.

She has more than $1 million in the firm's Whitehall Street real estate funds, owner of the famed La Costa Resort in Carlsbad (San Diego County) at a deep discount; $2 million in mezzanine funds, which provide high-cost financing, often for corporate leveraged buyouts; and more than $3 million in a telecom-related fund.

She has more than $1 million each in two Goldman "distressed opportunity" funds, which focus on companies facing possible bankruptcy.

State's ties to Goldman

Meanwhile, retirement funds for state workers, teachers and employees of the University of California have more than $1.3 billion in Goldman stock or equity funds. CalSTRS, the California State Teachers' Retirement Fund, has $299 million in a single Goldman investment.

Last fall, Goldman was underwriter of $8.8 billion in revenue anticipation notes when the cash-strapped state had to borrow to pay its bills.

More state borrowing - and thus, more bond issues - will be required before California gets its budget mess straightened out, experts say. If voters approve the $11 billion state water bond on the November ballot, "it's a certainty" that Goldman will be among the underwriters, said Tom Dresslar, spokesman for state Treasurer Bill Lockyer.

The treasurer's office, not the governor, selects bond underwriters, and state retirement boards sign off on investments.

But the governor has appointment authority at the retirement boards, and the power to propose and promote bond issues.
Campaign funding

The issue of global warming probably will bring California's next governor into contact with Goldman. With the passage of AB32, California is on the verge of creating a "market-based program to cap carbon emissions," the governor has said. Goldman has expressed interest in entering the cap-and-trade market. Schwarzenegger, a proponent of the new law, has met with Goldman on global warming issues, he said in a press release.

Whitman's other continuing connection with Goldman involves campaign cash. Of the money she's received from Goldman employees, $94,300 came from eight California-based executives of the firm.

If she is elected, Whitman will have to "disclose decisions that are being made by Goldman - and her part in them that relate to California," said Robert A.G. Monks, a former federal pension trustee and an expert in corporate governance. "Frankly, I don't know how she's going to do that, because there's a lot of it."

California Watch is a project of the Center for Investigative Reporting, with offices in the Bay Area and Sacramento. To read more about money and politics, go to

Meg Whitman and Goldman Sachs

Republican gubernatorial candidate Meg Whitman's career and personal wealth are interlaced with investment banking giant Goldman Sachs. Goldman is also a key player in public finance in California, the state Whitman wants to lead:

Pre-1998: Whitman and her husband, Griffith Harsh, began investing with Goldman before she was hired by eBay, according to her autobiography.

1998-2002: As CEO of eBay, Whitman helped steer millions of dollars of her firm's banking business to Goldman, court records show.

2001: Goldman appointed Whitman to its corporate board, a post she held for 15 months. The banking company also gave her insider access to initial public offerings (IPOs) of hot stocks, according to records.

2002: Whitman left Goldman's board. She had been singled out in a congressional probe of "spinning" - a now-banned financial move in which Goldman and other firms allegedly traded access to the IPOs in exchange for bond business.

Recent years: Whitman has kept part of her fortune, estimated by Forbes magazine to be $1.2 billion, in funds managed by Goldman, according to a financial disclosure report she filed for her candidacy for governor. She has a multimillion-dollar stake in 21 funds managed by the firm, the records show. Goldman executives have contributed $105,500 to her campaign so far.

2006-2010: Goldman has underwritten $78.9 billion in bonds issued by the state in the past five years, second only to Merrill Lynch, now part of Bank of America. Last fall, Goldman was underwriter of $8.8 billion in revenue anticipation notes to help the cash-strapped state pay its bills, and state pension funds have invested $1.3 billion with Goldman, records show.
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline xopatriot

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Re: Goldman Sachs attempts hostile takeover of State of California!
« Reply #1 on: April 13, 2010, 10:10:18 pm »
These scum bags are getting more and more bold. I mean they don't even try to hide it, but why should they? Most Americans only care about American idol or Football, they care very little about anything that does not impact their comfort directly or immediately. They will have a rude awakening.

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
-Tomas Jefferson

These men were incredibly wise and they tried to warn us of what would eventually happen to this country. Sadly we ignored them and, well, here we are today on the brink of financial catastrophe.
Even though I walk through the valley of the shadow of death, I will fear no evil, for you are with me; your rod and your staff, they comfort me.

You prepare a table before me in the presence of my enemies. You anoint my head with oil;  my cup overflows.

Offline larsonstdoc

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Re: Goldman Sachs attempts hostile takeover of State of California!
« Reply #2 on: April 13, 2010, 11:09:52 pm »

  it seems as if Goldman Sachs is behind everything that is evil and crooked.  THEY REALLY NEED TO BE EXPOSED.  But as xopatriot said, the sheep are asleep.

Offline Dig

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Re: Goldman Sachs attempts hostile takeover of State of California!
« Reply #3 on: April 14, 2010, 10:17:13 pm »
Whitman accused of manipulating media with video feeds
By Steven Harmon
Contra Costa Times
Posted: 04/14/2010 04:20:16 PM PDT
Updated: 04/14/2010 05:11:55 PM PDT

SACRAMENTO — Meg Whitman's campaign opponents are accusing her of trying to manipulate the media by providing selective footage of a campaign event to television stations around the state.

In what appears to be an unprecedented campaign tactic in California politics, Whitman has advised television stations in all markets that she'll be providing footage for events they are unable to attend for the rest of the campaign. The campaign sent its first footage Tuesday — eight minutes from a Riverside event in which she is shown talking to an audience.

Republican primary rival Steve Poizner's campaign called it another attempt by Whitman to buy the election, referring to the $49 million that she's spent so far on the campaign — largely on paid media advertising.

"Meg Whitman crossed another line in this race by spending her millions to spread her campaign propaganda in tailored sound bites to news stations," said Jarrod Agen, Poizner's spokesman.

Sterling Clifford, campaign spokesman for Democratic candidate Jerry Brown, called Whitman's move "campaign propaganda," while Sean Clegg, campaign manager for the Level the Playing Field 2010, said the move was straight out of Wall Street.

"In the world of corporate public relations," Clegg said, "it may work to send packaged video press releases, but there's a far greater degree of scrutiny in the political world."

Whitman also spent 40 minutes Tuesday being interviewed by four TV stations through a satellite hookup the campaign engineered by hiring a satellite truck, at $5,000 for half a day.

"We are starting something brand new at the Whitman Campaign," said an e-mail note sent out to TV stations earlier this week. "In an effort to make sure you're getting everything you need from our team, we are going to be providing a satellite feed of footage from Meg's news event on that given day. We're excited about making this footage available to you immediately following the event, and hope that you find it useful!"

Whitman's campaign said there is a distinction between the prepackaged news stories called video news releases, or VNRs, and the raw footage that the campaign sent out.

"We didn't do a voice-over or create a news release," said Mike Murphy, Whitman's campaign strategist. "To say it was a package to fool stations is absolute (expletive). It's hardly an attempt to manipulate the news. It's eight minutes of random footage. If you want to use it in your newscast, great. If you don't, great.

"It's an attempt at publicity, not manipulation," Murphy added. "They're different things. All we're trying to do is provide access, which, as of 30 days ago, we were being criticized for not doing."

Whitman's campaign did not know how many stations made use of the footage, but KPIX-TV Channel 5 was one station that refused to run it. Dan Rosenheim, vice president for news at the San Francisco station, said taking video feeds directly from campaigns raises ethical considerations.

"It's an issue of balance," Rosenheim said. "If a candidate can provide large quantities of material through their ability to pay for it, is there the risk that station's coverage becomes unbalanced in that candidate's favor?"

He also said he believes smaller stations with fewer resources would be tempted to use the material, which, while not prepackaged in a story form, is edited carefully by the Whitman campaign.

"It was edited in the sense they decided what to include and what not to include," Rosenheim said. "It has the potential to create some very unbalanced coverage. In our case, we're not going to use that, and hopefully news stations in general won't."

Whitman is attempting to gain the credibility that traditional news coverage — what's known as earned media — imparts to candidates without having to go through the rigors of true news coverage, said Joe Tuman, a communications professor at San Francisco State.

"What's really being presented is that it's a staged event with her making her talking points," Tuman said. "It's another effort at controlling her message and getting free publicity from that.

"It's a dangerous precedent," Tuman added. "What is the message to other candidates? That they'll have to produce product for them to get coverage?"
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline Dig

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holy crap, this woman is a psychopathic globalist demon spawn, wtf?

This was the secong worst merger in the history of America (first was aol-time warner)

CALIFORNIA, if you think the nazi was bad, you ain't seen nothing...

FEBRUARY 4, 2002

Thank you, and good morning everyone.

It's great to be here this morning - I haven't had the opportunity to address a room full of institutional investors since, well, Friday. I was having withdrawal.

You may already know that we will substantially exceed current consensus estimates for our first fiscal quarter, which ended January 31. I'll touch on this a little more at the end of my remarks today.

My purpose this morning is to answer a question that I've been asked many times in recent weeks, which is this: In light of all the adversity we've faced since announcing our plans to merge with Compaq last September, why do we remain so steadfast in our commitment to pursuing this merger? Why do we still think this merger is a good deal that deserves a second look?

To answer that question I want to step back in time for a moment - to show you what we saw; to take you through why we decided what we did - and to share with you our board's collective view of the industry and HP's place in it.

We all know that the technology industry is in the midst of transformation. We are entering a period of computing which defies all limits and crosses all borders, in which everything works with everything else, everywhere, all the time. It's a world where solutions matter most, where size makes a difference, and where success will depend upon our ability to align ourselves to function in a seamless way to answer our customers' every technology need.

When I came to HP two and a half years ago, the Board of Directors and the management team had concluded that in light of these technology advances, changing customer requirements and increasing competition, we had already begun to lose ground. The Agilent spin-off was the first step in a process of self-appraisal - a process that began with an evaluation of customer requirements and HP's ability to meet them.

the end of the pure product era

That process made clear that the Internet is indeed driving a fundamental change in customer requirements. The simplest way to describe the shift we saw is this: the pure product era is over. Of course, our company has always engineered great products and has been organized to engineer great products. And while great products will always be our foundation, we came to realize that great products were no longer going to be enough, because customers are looking for solutions to new challenges presented by a transformed technological world.

It's true: the Internet changes everything. Think of all the things you can do from your home, your car, your office, the airport that you could never do before. Things like instant communication over networks, content moving over networks, whole processes being transformed by networks and networks supported by open architectures - all of which are driving a technology transformation that is much more radical and much more rapid than ever before. The dot-com bubble may have burst, but the effect of the Internet on business and daily life is immutable.

Let me give you an example. Take traditional photography. That process is physical, chemical. You take a picture with your camera, drop off the film at a local drug store, wait for the development process to occur, pick up the film later, return home and mail the pictures to your family and friends. Digital imaging is a process of digital content creation, digital content distribution and, ultimately, at the time and place of your choosing, the transformation of digital content into physical content. With digital imaging, you take a picture with your digital camera, and then store, manipulate and distribute those digital bits anytime and any way you want. Then, when you or someone you love is ready, they transform that digital content into a wonderful printed photograph, whenever, wherever and however they choose. With digital imaging, a physical process has been made better, faster, more fun and effective by way of a whole new generation of technology connected to networks. It's an opportunity we've been investing in for more than three years. It is a category we can lead in like no one else precisely because it is all about digital content transformation. Content transformation requires a whole lot more than a digital camera or a photo printer. It requires PCs, software, network understanding and computing infrastructure to make it all work reliably and simply every time.

Now, spin that example out over a million different customers in thousands of different industries, and you begin to get a taste of the new challenge IT companies face today. Our customers are looking for solutions that encompass digital content delivered as services. And they're looking for an infrastructure that is always on, always reliable, always secure. It's not just a question of having a server here and storage there. Fundamentally, it's about having servers and storage and network management capabilities working together seamlessly to produce an infrastructure that is as reliable as electricity or water. That is what the computing infrastructure must evolve to.

assessing hp's capabilities

And if we're going to lead in this next era in computing, we've got to keep moving in that direction.

So, we began to think about our own devices through the prism of this new marketplace. How do we make a printer, for example, that is intelligent and connected? Today, all of the printers we make are Web-enabled, capable of connecting directly to the Internet so that a printer can access digital content from any device, anywhere. We then asked ourselves: Once content is digitized, what new markets are created, what industries are transformed and how do we play to win in those emerging markets - markets like digital imaging and digital publishing?

We began to think about our enterprise computing business - how do we make storage, servers, management software work together in an integrated way to address a whole new set of requirements? What advantage would that give us with customers? Is our portfolio strong enough? How do we make the enterprise computing business more profitable?

And, we began to think about our service and support delivery capability in the context of end-to-end solutions. Do we have enough scale in the organization to take on major outsourcing and support projects across multi-technology environments on a global basis?

We also thought about our culture. How do we preserve what is best about our company and at the same time become quicker, more agile, more customer-focused?

We knew that success would require a different kind of collaboration across our divisions, units and functions. When you're building networked capabilities, when it's important that servers and storage and software work together, when it's important that handheld devices and printers and PCs work better together than separately, it calls for a different kind of teamwork, a different kind of research.

So, nearly three years ago we set out on a process to preserve what was best about HP and reinvent the rest.

building the foundation for leadership

We systematically restructured our organization to provide both a coherent, unified face to the customer and renewed commitment to engineering excellence, R&D and intellectual property. In addition, we consolidated 83 independent product lines into 17 product categories - allowing us to reduce redundant overhead and channel the savings into R&D and sales. We put in place a "Total Customer Experience" program to track, measure and incent the organization to focus on customer needs and exceeding customer expectations.

But as essential as it was, restructuring and refocusing the organization was not designed to be the end point; it was designed to lay the foundation for market leadership. We recognized that leadership in this new marketplace would require the scale to operate globally, to drive standards and to attract partners. We saw that it would require a better market position in key growth categories - such as networked storage, Windows and Linux servers, in managed services and support, in new categories of devices, in new markets. Leadership would require a stronger, more profitable, more balanced operating model across our businesses - because as Bill Hewlett and Dave Packard often preached, profitability is still the key to job preservation, and investment in R&D and innovation, and contribution to community. And we understood that achieving a leadership position would require us to address the fact that the rise of industry-standard platforms, open-source communities and the trend toward consolidation are inevitable: inevitable because customers demand ever-improving returns on their IT dollars, and greater flexibility, and faster time-to-market and globally deployed capabilities. We knew we could either lead this trend or be swallowed up by it.

Two decades of organic growth and tactical acquisitions were just not enough to get us where we needed to go. Over the past 20 years, we had come a little bit late to two major technology transitions - client/server computing and the Internet. And we knew that gaps in our portfolio would have to be addressed in order for us to become a total solutions provider.

First, in enterprise computing: It is critically important in the strategy that I just outlined that we support and are successful in all three operating systems used by industry today - UNIX, NT and Linux. Why? Because our customers use all three operating systems and they expect an end-to-end solutions provider to support them.

The reality is that we are strong and getting stronger in UNIX - we just tied Sun for the No. 1 position in UNIX. But while we've made great progress in UNIX, it's not enough. While UNIX will remain at the heart of the data center, its growth will be just 5-7% going forward. More and more low and mid-range applications will be provided on Windows and Linux - in fact Windows servers will probably grow at 20%, and Linux may well grow in excess of 30%. HP has been losing momentum and losing money in our Windows business for almost two years. Today, our market share is about 8%. And while we've made great progress in Linux, our efforts here need to be beefed-up quickly. We need a winning multi-OS server business to be successful in enterprise computing and to execute on our strategy.

And nearly a decade ago we made a commitment to the IA-64 processor architecture - what has become the Itanium processor family. HP scientists and engineers worked with Intel to co-develop this next-generation chip architecture to handle precisely the new kinds of enterprise-class applications and services now on the horizon. We must capitalize on our investment in this platform. In the networked world, where content is distributed digitally, storage is also a huge and growing opportunity. Today we have great assets in high-end networked storage, but we don't have enough to lead.

Then there is our services and support organization - the people who put technology to work for our customers. This is a big and profitable business, but it requires scale and capacity and know-how. While we have the talent to compete with anyone, we don't have the scale.

Let's talk about our PC business. This is the least well-understood aspect of our merger. PCs are clearly a vital piece of the solution customers - both consumers and businesses - demand. For us, PCs have a particularly important role to play. Digital imaging, for example - which is a great growth opportunity for our imaging and printing systems business - is made much easier and will be adopted much faster with PCs. So there is logic in sustaining this business and making it a better contributor to a much better balanced whole. Our consumer PC business is successful and profitable, but we are way behind in the commercial PC business. Where Dell does 70% of their commercial business through their direct channel, we do 15%. Where Dell achieves 70 inventory turns, we achieve 25. The PC industry will consolidate, and so we need scale, and we need direct distribution capability.

And for far too long, our imaging and printing business has accounted for too much of the profitability of our company. We have to invest in imaging and printing to lead, which means our other businesses have to pay their own way. Continued growth in imaging and printing requires new category creation - categories like digital publishing and digital imaging. And these growth opportunities depend upon the capabilities we have in computing and storage and servers and network management. And, so, we must move forward to make our access and enterprise computing businesses adequately profitable.

Addressing these gaps forced us to ask these questions: Can we fix the profitability of our PC business or should we exit that business completely? How do we improve the profitability of our computing business so we avoid draining the life out of our imaging and printing franchise? How do we improve our market position in storage, servers and management software so that we're a more attractive partner to customers, application developers and systems integrators? Could we answer all of these questions through small, targeted acquisitions, or does the challenge actually require a bolder response?

to lead or to follow

Over a period of two-and-a-half years, we looked at many alternatives, including every one that our critics have suggested.

We looked at focusing solely on our imaging and printing franchise - as some have suggested - but the consequences were unacceptable. Continued double-digit top line growth and bottom-line profitability requires us to capture more and more of the printed page opportunities. We capture 4% of the printed pages today. We need to keep growing that percentage. We announced the acquisition of Indigo to do precisely this - to capture the pages that today are handled by commercial printers. But digital publishing, an opportunity that can add $5 billion to our top line by 2005, requires more than a great print engine, and toner and ink. Because digital publishing is also about digital content creation, distribution and transformation, the metamorphosis of what's currently a physical process into a digital, networked process. Capturing this opportunity requires servers, and storage and network management software and professional services.

We had choices in our PC business. We could shut it down, which would damage our imaging and printing franchise and mean significant loss of jobs. We could spin it off, as some people have suggested. But, frankly, our PC business is not a viable entity in its own right and would not create sufficient value for shareowners. Or, alternatively, we could fix it by adding volume and direct distribution capabilities. And what about our server business? We could have exited the Windows server business, but we would be removing ourselves from one of the fastest-growing markets and a vital category in calling ourselves a solutions provider.

We could have pursued any of these alternatives, or we could have done nothing at all. But, fundamentally, HP's ambitions are bigger than that. The legacy of HP - the people of HP - are capable of doing and achieving and being so much more than a stripped down shell of what we are now. For all the gaps we have to fill, we also have huge capabilities. HP Labs was awarded nearly 1,000 new patents in the U.S. in 2001 and generated 5,000 new patent applications - an average of 20 every working day. And so, the question became: How do we execute even more effectively on our strategy ? How do we address our real issues, and capitalize on our real opportunities?

One of the things that Dave Packard says in his book The HP Way is that he never forgot, and I quote, that "continuous growth was essential for us to achieve our other objectives and remain competitive. Since we participate in the fields of advanced and rapidly changing technologies, to remain static is to lose ground."

We have adopted that statement as a rallying cry because it was an operating philosophy that guided everything Bill and Dave did. If you look back through the history of this company, it is a history marked by bold moves to take advantage of changing markets, changing customer requirements and changing technologies.

Which brings us to our merger with Compaq.

choosing to lead: the merger with compaq

With Compaq, we become No. 1 in Windows, No. 1 in Linux and No. 1 in UNIX. This new strength and our market presence make us a much more attractive partner. And with our combined market position in servers, we will be able to engage the software community in building the applications that will drive demand for Itanium systems.

Compaq is the leading provider of storage systems in the world on a revenue basis. With Compaq, we become the No. 1 player in storage, and the leader in the fastest growing segment of the storage market - storage area networks.

With Compaq, we double our service and support capacity in the area of mission-critical infrastructure design, outsourcing and support. And while support is frequently considered the boring part of the services business, it produces mid-teens operating margins quarter after quarter. It's like the supplies business - more is better.

Compaq is No. 1 today in high-performance computing as a result of their Tandem acquisition. Between Himalaya, their fault-tolerant computing systems, and our own super-fast Superdome, we will have an incredibly powerful position at the high end of the server market. And we gain access to new customers and markets where fault-tolerant computing is required: national security, the military and the world's largest stock exchanges, for example.

Let's talk about PCs. About a year-and-a-half ago, Compaq bought Inacom, a company that had a direct delivery engine. As a result, Compaq has been able to improve their turns in that business from 23 turns of inventory per year to 62 - 100% improvement year over year - and they are coming close to doing as well as Dell does. They've reduced operating expenses by $130 million, improved gross margins by three points, reduced channel inventory by more than $800 million. They ship about 70% of their commercial volume through their direct channel, comparable to Dell. We will combine our successful retail PC business model with their commercial business model and achieve much more together than we could alone.

With Compaq, we will double the size of our sales force to 15,000 strong. We will build our R&D budget to more than $4 billion a year, and add important capabilities to HP Labs. We will become the No. 1 player in a whole host of countries around the world - HP operates in more than 160 countries, with well over 60% of our revenues coming from outside the U.S. The new HP will be the No. 1 player in the consumer and small- and medium-business segments. And in the enterprise space, this company will be able to compete for every single customer's business.

We have built a conservative case of synergies. We have estimated cost synergies of $2.5 billion by 2004, but frankly our initial numbers were substantially higher, and the business plans we're currently building in our final phase of integration planning are higher as well. But, this is a complex task, and we want to give ourselves margin for error. With $2 billion worth of synergies by the end of FY 2003, and conservative assumptions of revenue loss already built in, we'll have 15%-17% operating expenses, and 9% operating margins. By 2003, the PC and personal devices business will earn 3% operating margin, which more than returns its cost of capital and generates substantial cash. Our enterprise business will earn 9%, and our services business will earn 14%. All in all, the company will generate $1.5 billion of cash flow net of capital expenditures every quarter.

It is a rare opportunity when a technology company can advance its market position substantially and reduce its cost structure substantially at the same time. And this is possible because Compaq and HP are in the same businesses, pursuing the same strategies, in the same markets, with complementary capabilities.

So, yes, we thought about a go-slow approach. But, we concluded, after two-and-a-half years of careful deliberation and preparation, that standing still had enormous risks. Standing still is the path of greatest risk, because our customers and the technologies we market will not stand still with us. Standing still means losing ground. Standing still means choosing the path of retreat, not leadership.

Now, some of our critics say bigger doesn't necessarily mean better. And I agree. But it doesn't follow that bigger can't be better - especially in an industry that is maturing and consolidating around one-stop shops that can offer technology solutions, not just stand-alone products.

Whether bigger actually is better depends on a number of factors, including the degree to which it contributes to market leadership, profitability and innovation. If we've learned anything in recent years, we've learned that market leadership drives profitability - and profitability assures the ability to continuously innovate and retain market leadership - it's a virtuous cycle.

Compaq is No. 1 today in high-performance computing as a result of their Tandem acquisition. Between Himalaya, their fault-tolerant computing systems, and our own super-fast Superdome, we will have an incredibly powerful position at the high-end of the server market. And we gain access to new customers and markets where fault-tolerant computing is required: national security, the military and the world's largest stock exchanges, for example.

the hallmarks of a successful merger

Many technology mergers have failed. Most have been mergers of diversification, not consolidation. Many have been market laggards coming together. Most have been done in hot markets at hot prices - requiring lots of revenue synergies to cover the bet. Many had no detailed pre- or post-close integration programs.

This is a merger of like businesses coming together - a merger of consolidation, not diversification. HP and Compaq are in the same businesses, we understand each other, we speak the same language. This is a merger that creates market leadership. This is a merger that we expect to be substantially accretive even with revenue losses baked in. This is a merger with lots of upside potential in both cost synergies and revenue.

This industry is beginning to consolidate; and current technology industry dynamics are much more akin to the mature phases of other industries - where mergers are not only workable, but a strategic imperative. Industries like pharmaceuticals, oil and gas, financial services, telecom and aerospace. In fact, there are some common threads that run through successful mergers.

Mergers have succeeded:

when the combination is about bringing like businesses together, not making forays into new businesses;

when the combination helps to achieve clear market leadership;

when the deal is stock only, providing a strong post-merger balance sheet;

when the combination results in significant cost savings, and;

when the combination meets the criteria for smooth and effective integration.

The HP/Compaq merger meets all of these measures of success and then some.

The timing of this deal is also important. We're doing this merger at the near bottom of a market cycle, not the top, which means valuations are fair, customers aren't making major IT investments and our competitors are in a holding pattern or dealing with business-model challenges of their own as they adjust to lower overall industry growth rates. And perhaps most importantly, our employee base is stable. Attrition at HP and Compaq are at all-time lows.

And, we're not leaving anything to chance. A group of 450 dedicated people, between HP and Compaq, have been working around the clock to understand the complexity of past mergers and make the right decisions for the new company. We're drawing on our very direct experience spinning off Agilent, and Compaq's mergers with DEC and Tandem.

We are addressing the critical factors for successful merger execution - including defining governance for the new company, ensuring an unyielding focus on customers throughout the pre- and post-close integration process, developing clear product roadmaps, preparing ourselves for Day One across every level of the company, developing rigorous plans for capturing the cost-savings we have identified, and staying in constant communication with employees and stakeholders. Interestingly, the adversity we've faced has brought the two organizations even closer together and created an even more unified and committed team. Proof that a kite rises against the wind, not with it.

We have now entered the third and final phase of our integration planning. We are at the point where detailed business plans are being drawn up for the new company. We are over-achieving on both our cost reduction and revenue targets. We have completed all our product line road maps. We've built our go-to-market plans. Our web sites will be integrated on day one. Our customer service reps will know what to say when they pick up the phone. All our employees will get a paycheck that says HP. These are just some examples of the nitty-gritty work that must be done, and is being done to assure we hit the ground running and can meet or exceed the expectations of our employees, our customers and our shareowners. All the hard work of reinvention over the past two-and-a-half years has been preparation for this.

the courage and conviction to lead

This merger isn't just my judgment of how best to secure this company's future. This represents the collective judgment of a talented team of people who have spent the last few years preparing for this transaction.

It includes people like Phil Condit, the CEO of Boeing, who managed Boeing's acquisition of McDonnell Douglas, Hughes Space division and Rockwell's defense and aerospace business - moves that transformed the aerospace industry. It includes people like Sam Ginn, former chairman of Vodafone, who managed the merger of Air Touch and Vodafone and the spin-off of Pacific Telesis from AT&T. It includes people like Dick Hackborn, who created HP's imaging and printing franchise; and Patty Dunn, who as head of Barclay's Global Investors manages $800 billion in investor assets. People like Jay Keyworth, a personal advisor and friend to Dave Packard from his days serving in the U.S. Government. People like Bob Knowling, who transformed Ameritech and was tapped to help manage their acquisition of GE Information Services.

These are people who attended the meetings where we asked the hard questions: Will merging with Compaq create shareowner value, and can we get it done? These same people have looked at the alternatives. And they unanimously came to an answer: Merge with Compaq.

what's the alternative?

True, there is one dissenter on our board. I am disappointed that Walter Hewlett has come out against this merger. Walter is a good and decent man. And he has a right to disagree. But we have every right to disagree with him, too.

Frankly, my problem isn't that our opposition is saying "no" to the merger. The problem is that they are giving us nothing to say "yes" to, because they haven't proposed any solutions to the challenges we face beyond suggesting smaller, targeted acquisitions of unidentified partners in who-knows-what businesses. We are being asked to simply disregard two-and-a-half years of planning and thought and strategy - in which every option was considered and rejected because it failed to create sufficient value - in favor of retreating and starting over.

If we had to go back to the drawing board, HP would face the same set of choices, the same set of challenges and the same set of solutions we face today. The only thing we would lose is time. And that's the one thing none of us in this industry can afford to lose; it's the one thing we can never get back. The other members of our board, our management team and I have met the challenge of answering the hard questions. We ask those who oppose this merger, who suggest that we remain in place as the world passes us by, to meet the challenge as we did:

What alternative can you offer that both addresses our business challenges and advances our market position in so many important growth segments?

Why do you believe that a single integration process with a company we know well is riskier than a series of integration efforts of several different companies and cultures?

How long will it take to achieve profitability and growth across our businesses if we stop the train we're on and start over, and how many jobs would be sacrificed in the process? Do you think you have the luxury of time?

Those who oppose this merger owe answers to these questions to the shareowners and customers of this company and to the people of HP who have spent the last three years preparing for this future - making the tough strategic decisions. Executing the strategy day in and day out. Doing the heavy lifting. Making the personal sacrifices.

To simply say no without offering an alternative plan is to ask the people of HP to give up their vision, to put their ambitions aside, and to settle for less than this company is capable of achieving. The people of HP don't want to rest on the legacy of this company. They are determined to build on it.

a legacy worth preserving

I come here today confident that we have turned the corner on this merger. The momentum is shifting. The more that people look at this deal, the more they conclude that this is not simply a choice between merging and not merging. This is a choice between taking the hill and charging ahead or retreating and starting over. This is a choice between embracing the revolution that is changing our industry or attempting in vain to preserve the status quo. This is a choice between leading or following.

Last week's unconditional approval of our merger by the European Commission shows that the deal is pro-competition. And, today's positive earnings update - just like last month's earnings announcement by Compaq and our fourth quarter results before that - proves what the people of these two companies can accomplish. We aren't distracted by the merger or the challenge of integration. And our customers aren't defecting. Our shareowners can be assured that we are on a path toward enhancing, not losing, shareowner value. Every day, it's becoming more clear: What these two companies can accomplish together is greater than either one of us can accomplish alone.

During another time and place, at the dawn of another era in computing, a woman named Grace Murray Hopper offered a piece of wisdom that applies to us today. Grace Murray Hopper was not only one of the first women software engineers in America - she was also a Rear Admiral in the U.S. Navy. One day, she was asked why she liked to be in the middle of the action at sea rather than docked in safe waters at home. She replied: "A ship in port is safe. But that is not what ships are built for."

HP can sit idly in its port and watch the rest of the world go by. It can choose the still waters of inaction over the rough waves of competition. But that is not what Hewlett-Packard was built for.

Ours is a legacy of invention and values that are worth preserving. Sustaining our company requires moving forward with courage and determination. And that is exactly what we intend to do.

Thank you.
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately

Offline Dig

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HP offices in Moscow raided by Russian officials
By Brandon Bailey
Posted: 04/14/2010 09:32:56 PM PDT
Updated: 04/14/2010 09:32:57 PM PDT

Russian authorities raided the Moscow offices of Hewlett-Packard on Wednesday, reportedly as part of an investigation into allegations that HP executives paid millions of dollars in bribes to win a government contract.

Officials in Russia and Germany are looking into whether the HP executives paid the bribes in exchange for a deal to sell a secure computer system to the Russian prosecutor general's office, according to a report in The Wall Street Journal, which cited German court documents and unnamed law enforcement sources.

HP said it is cooperating fully with the probe, which centers on a 2003 contract with the Russian agency. In a statement late Wednesday, the company added: "This is an investigation of alleged conduct that occurred almost seven years ago, largely by employees no longer with HP."

The company said it is also conducting its own investigation, but declined to provide further information.

The Russian agency that purchased the computer system is responsible for investigating corruption and other crimes in that country. The Wall Street Journal said German authorities are leading the multinational investigation, however, because of allegations that HP sold the system through a German subsidiary.

In their attempt to trace an alleged $11 million in bribes, authorities have been tracking funds that were transferred through a network of shell companies in several countries, including the United States and Britain,

according to the Journal. The newspaper said police in Germany and Switzerland have presented HP officials with search warrants that describe allegations against 10 suspects.

The Journal did not name any of the executives who are suspected of paying bribes, and it wasn't clear who may have received the payments.

German court records show the original contract, worth about $48 million, was signed in 2003 by an HP executive and an unidentified Russian official, according to the newspaper. It said the investigation has been hampered because the Russian's signature is illegible and the person who signed for HP has not provided the Russian's name to authorities.

While it appears the case is centered in Europe, it could also trigger an investigation by the Securities and Exchange Commission or other U.S. authorities, under a U.S. law that prohibits American companies from paying bribes to foreign officials. HP may also be required to notify the SEC about the German investigation; however, the Journal said the company has not filed any notice to date.

Carly Fiorina, who is running for the Republican nomination to the U.S. Senate in California, was CEO of HP at the time the contract was signed. A campaign spokeswoman said Wednesday that Fiorina "has no knowledge of these alleged actions,'' and added that as CEO she would have fired employees if she had learned they were involved in illegal behavior.
All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately


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just amazing, amazing , amazing stuff, I'm actually speechless, btw Carly's also buds with ze Arnold

Offline TahoeBlue

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Meanwhile, Goldman is a major player in California state finance. It has been the underwriter of $78.9 billion in bonds issued by the state since 2006, records show, second only to Merrill Lynch, now a division of Bank of America, which was underwriter of $79.3 billion in the same period. 

(fyi - Rockefeller now owns BofA - via U.S. Trust)

They own a piece, now they want it all. They OWN  California.

They can split it up as much as you want, Rockefeller/Rothschild own it. 

They realized back in the 1880's that they needed an army of highly educated stooges to manage their empires and "donated" their wealth to creating leading institutions to create and find the people they could use. Rockefeller created the General Education Board to manage the education of the masses (slaves). Andrew Dickson White creates the model for Cornell/Stanford/U.C. Berkeley. The chess board was filled over hundred years ago with their pieces. Pilgrims/Rhodes/Bilderberg the project management stategy groups.

As an example U.S. Trust a Rockefeller controlled "trust" bank is now "owned" by BofA (so really Rockefeller Owns BofA) :
United States Trust Corporation is a New York City-based bank holding company and oldest trust company in the U.S. and provides personal service to the wealthiest individuals and families.

In 2000 U.S. Trust had $80 billion in assets and the Charles Schwab Corporation bought it for $2.73 billion.

On 20 November, 2006, Bank of America announced the purchase of The United States Trust Company for $3.3 billion, from Charles Schwab. US Trust had about $100 billion of Assets Under Management. The deal closed 1 July 2007.
James Stillman died in 1917, leaving an estate appraised at $40,279,807 to his three sons, Charles C., James A. and Ernest G. Stillman, and to his two daughters, Isabel G. Rockefeller and Elsie G. Rockefeller, who married the sons of William Rockefeller.

Stillman and Rockefeller were engaged in many financial enterprises together. Mr. Stillman undoubtedly gave many millions to his children before he died, his total wealth being estimated at $80,000,000.
Among the principal holdings in the estate ...
U. S. Trust, $174,512
U. S. Trust Corporation Ltd. of London, $546,000
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

Offline Satyagraha

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SEC accuses Goldman Sachs of defrauding investors
by Marcy Gordon - Apr. 16, 2010 04:45 PM
Associated Press

WASHINGTON The government on Friday accused Wall Street's most powerful firm of fraud, saying Goldman Sachs & Co. sold mortgage investments without telling the buyers that the securities were crafted with input from a client who was betting on them to fail.

And fail they did. The securities cost investors close to $1 billion while helping Goldman client Paulson & Co., a hedge fund, capitalize on the housing bust. The Goldman executive accused of shepherding the deal allegedly boasted about the "exotic trades" he created "without necessarily understanding all of the implications of those monstrosities!!!"

The civil charges filed by the Securities and Exchange Commission are the government's most significant legal action related to the mortgage meltdown that ignited the financial crisis and helped plunge the country into recession.

The news sent Goldman Sachs shares and the stock market reeling as the SEC said other financial deals related to the meltdown continue to be investigated. It was a blow to the reputation of a financial giant that had emerged relatively unscathed from the economic crisis.

Goldman Sachs denied the allegations. In a statement, it called the SEC's charges "completely unfounded in law and fact" and said it will contest them.

The SEC is seeking to recoup the money lost by investors and impose unspecified civil fines against Goldman Sachs and the executive, Fabrice Tourre. The SEC could enter into settlement negotiations over the amount if Goldman changed its stance and decided not to fight the charges in a trial.

The SEC said Paulson paid Goldman roughly $15 million in 2007 to devise an investment tied to mortgage-related securities that the hedge fund viewed as likely to decline in value. Separately, Paulson took out a form of insurance that allowed it to make a huge profit when those securities' value plunged.

The fraud allegations focus on how Goldman sold the securities. Goldman told investors that a third party, ACA Management LLC, had selected the pools of subprime mortgages it used to create the securities. The securities are known as synthetic collateralized debt obligations.

The SEC alleges that Goldman misled investors by failing to disclose that Paulson & Co. also played a role in selecting the mortgage pools and stood to profit from their decline in value. Two European banks that bought the securities lost nearly $1 billion, the SEC said.

"Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party," SEC Enforcement Director Robert Khuzami said in a statement.

But Goldman said in a statement that it never mischaracterized Paulson's strategy in the transaction. It added that it wasn't obliged to "disclose the identities of a buyer to a seller and vice versa."

The charges name only Goldman Sachs and Tourre, who was a vice president in his late 20s when the alleged fraud was orchestrated in 2007. Tourre, the SEC said, boasted to a friend that he was able to put such deals together as the mortgage market was unraveling in early 2007.

In an e-mail to the friend, he described himself as "the fabulous Fab standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstrosities!!!"

Tourre, 31, has since been promoted to executive director of Goldman Sachs International in London.

Stanford University spokeswoman Elaine Ray said a student by the name of Fabrice Tourre received a master's degree in management science and engineering from the school in 2001.

A call to a lawyer for Tourre, Pamela Chepiga at Allen & Overy LLP, wasn't returned.

Asked why the SEC did not also pursue a case against Paulson, Khuzami said: "It was Goldman that made the representations to investors. Paulson did not."

Paulson & Co. is run by John Paulson, who reaped billions by betting against subprime mortgage securities. He is not related to former Treasury Secretary Henry Paulson, a former Goldman CEO.

John Paulson was among the first on Wall Street to bet heavily against subprime mortgages. His firm earned more than $15 billion in 2007, and he pocketed $3.7 billion. He has since earned billions more, largely by betting against bank stocks and then buying them back after their shares plunged.

In a statement, Paulson & Co. said: "As the SEC said at its press conference, Paulson is not the subject of this complaint, made no misrepresentations and is not the subject of any charges."

Goldman, founded more than 140 years ago, built a reputation as a trusted adviser to investment banking clients and for sending top executives into presidential Cabinet posts.

In recent years, it shifted toward taking more risks with its clients' money and its own. Goldman's trading allowed the firm to weather the financial crisis better than most other big banks. It earned a record $4.79 billion in the last quarter of 2009.

The complaint filed in federal court in Manhattan "undermines their brand," said Simon Johnson, a professor at the Massachusetts Institute of Technology and a Goldman critic. "It undermines their political clout. I don't think anybody really values being connected to Goldman at this point."

He continued: "There are many people who until this morning thought Goldman Sachs was well-run."

The SEC's enforcement chief said the agency is investigating a wide range of practices related to the crisis. The prospect of possible legal jeopardy for other major financial players roiled the stock market.

Goldman Sachs shares fell more than 12 percent Goldman and lost $14.2 billion in market capitalization. The Dow Jones industrial average finished down more than 125 points.

The SEC appears to be taking a particularly aggressive approach with Goldman. Typically, cases are resolved by firms agreeing to a settlement before the charges are made public, said John Coffee, a securities law professor at Columbia University.

"The SEC has changed its style," Coffee said. "They wanted to tell the world what they thought Goldman had done wrong."

The charges come as lawmakers seek to crack down on Wall Street practices that helped cause the financial crisis. Congress is considering tougher rules for complex investments like those involved in the alleged Goldman fraud.

President Barack Obama vowed Friday to veto a financial overhaul bill that doesn't regulate mortgage-backed securities and other so-called derivatives. Legislation in Congress would for the first time regulate derivatives, whose value depends on an underlying asset, such as mortgages or stocks. Senate Republicans oppose the bill.

Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, is "pleased that the SEC is departing from the lax enforcement of the Bush administration and is returning to the SEC's proper role of protecting investors in the marketplace," spokesman Steven Adamske said.

The biggest loser in the alleged fraud was ABN Amro, a major Dutch bank, and the Royal Bank of Scotland, which acquired major portions of it in 2007. The SEC said the Royal Bank of Scotland paid Goldman $841 million to unwind ABN transactions.

IKB Deutsche Industriebank AG, a German commercial bank, lost nearly all its $150 million investment, the agency said. Most of the money the banks lost went to Paulson in a series of transactions between Goldman and the hedge fund, the SEC said.

IKB was an early casualty of the financial crisis. It issued a profit warning in 2007 saying it had been hurt by U.S. subprime mortgage investments. IKB was sold in 2008 to Dallas-based Lone Star Funds.

Ed Trissel, a spokesman for Lone Star Funds, declined to comment on the case.

The SEC charges come after Goldman Sachs denied last week it that bet against clients by selling them mortgage-backed securities while reducing its own exposure to them.

In an annual letter to shareholders, Goldman said it began reducing its exposure to the U.S. mortgage market in late 2006.

AP Business Writers Alan Zibel in Washington, Stevenson Jacobs in New York and Ashley M. Heher in Chicago contributed to this report.
See also:
And  the King shall answer and say unto them, Verily I say unto you, 
Inasmuch as ye have done it unto one of the least of these my brethren,  ye have done it unto me.

Matthew 25:40

Offline jofortruth

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Meg Whitman was the one who said after 911 "the air was safe to breathe"! Anyone in their right mind would have known that after the towers fell and you had that much dust and debri in the air, that it was not safe to breathe! The woman is just another elite minion! So, she has no credibility whatsoever!

Christie Whitman says air is safe days after 911

The list of names of who will need to be imprisoned for life, once we take back our country, is growing very long. We will not rest until every last one of them is in a cell for the rest of their natural days! This starts with Goldman Sachs people and every single minion anywhere in the government who participated knowingly or unknowingly or who turned a blind eye to the destruction of their own country! There is no excuse for their treason! NONE!
Don't believe me. Look it up yourself!

Offline TahoeBlue

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The new Genetically designed NWO technocrats

Meg Whitman - Cold Spring Harbor - first "self-made" female Billionaire, Goldman Sachs -  ebay ceo :  
High School 1974 - Harvard MBA 1979 ???? Fast-tracked in 5 years!!???

Whitman was born on Long Island, New York, the daughter of Hendricks Hallett Whitman and Margaret (Goodhue) Whitman.[2][3] She attended a public high school, Cold Spring Harbor High School in Cold Spring Harbor, New York, graduating in 1974.

She had wanted to be a doctor, so she studied physics and mathematics at Princeton University.

However, after spending a summer selling advertisements for a magazine, she switched to studying economics[4], earning a BA with honors in 1978. Whitman then obtained an MBA from Harvard Business School in 1979.[5]

Whitman is married to Griffith Harsh IV, a neurosurgeon at Stanford University Medical Center.[6] They have two sons.[6] She has lived in Atherton, California, since March 1998.[7]

She was appointed to the board of Goldman Sachs in October, 2001 and then resigned in December 2002, amidst controversy that she allegedly had received shares in several public offerings managed by Goldman Sachs.[17][18][19]

2) 1910---The Eugenics Record Office is established at Cold Spring Harbor in New York. It is funded by the Carnegie Institute, and will receive funding from the Rockefeller Foundation which will be founded in 1913. The Rockefeller Foundation also will fund Nazi Dr. Ernst Rudin's eugenics research at the Kaiser Wilhelm Brain Research Institute in Berlin. At the Third International Congress on Eugenics held in New York in 1932, Rudin will be unanimously elected president of the International Federation of Eugenic Societies. Rudin and other Nazis will be transported to the Congress on George Herbert Walker's and Prescott Bush's Hamburg-Amerika Lines.

In 1969, Rockefeller Official Said US Would Be De-industrialized

Cold Springs Harbor Laboratory which hosted The Eugenics Record Office ...
Watson basically took over the office after he discovered DNA....

Carlyle is never very far from Cold Spring Harbor Laboratory
David M. Rubenstein J.D.    
Co-Founder and Managing Director, The Carlyle Group
Board of Trustees Cold Spring Harbor Laboratory Inc.
Cold Spring Harbor Laboratory Inc.

James D. Watson, Ph.D. served as President of Cold Spring Harbor Laboratory of New York, a genetics and biotechnology research center, from 1994 to 2003.

Dr. Watson was a Prime Mover in the establishment of the federal government's human genome project and headed that project for a number of years from its inception.
He along with Drs. Francis H.C. Crick and Maurice Wilkins, won the Nobel Prize in medicine in 1962 for determining that the molecular structure of DNA is a double-helix, which made possible the dramatic developments relating to DNA which have followed that discovery
 In 2002, Queen Elizabeth declared him an Honorary Knight of the British Empire

Harvard University
Pall Corp.
Siemens Medical Solutions Diagnostics
The University of Chicago
SIBIA Neurosciences, Inc.
DNA Sciences
University of Cambridge
Indiana University, Bloomington
Orion Genomics, LLC
Seed Media Group LLC
Bruce Stillman Ph.D.    
President and Chief Executive Officer, Cold Spring Harbor Laboratory Inc.
Member of Medical Advisory Board Howard Hughes Medical Institute
Eugenics Record Office

James Watson, co-discoverer of the structure of DNA, is in trouble again, this time for a racist remark that has led to wide criticism and his firing from the Cold Spring Harbor Laboratory (CSHL), where he had worked for 43 years. As a byproduct, this has again ignited old debates on whether some groups and races are inherently inferior than others. The blogosphere seems to be abuzz with passionate arguments -- a particularly good exchange took place here.

Watson, it seems, "has repeatedly supported genetic screening and genetic engineering in public lectures and interviews, arguing that stupidity is a disease and the 'really stupid' bottom 10% of people should be cured". He is on record for saying that darker skinned people have stronger libidos, that beauty could be genetically engineered: "People say it would be terrible if we made all girls pretty. I think it would be great."

Curiously enough, the CSHL also hosted the Eugenics Record Office (ERO) in the early decades on the 20th century (until 1944). The ERO once led the field of eugenics research in the US -- the first country to embark on systematic, forced sterilization programs for the purpose of eugenics. Their targets included "orphans, ne'er-do-wells, tramps, the homeless and paupers", "defective persons" who were a "menace to society", the "feeble minded", including most Russian and Polish immigrants, alcoholics, criminals, prostitutes, nomads, and other Americans "born to be a burden on the rest." While German immigrants were "thrifty, intelligent and honest," Italians had an innate "tendency to personal violence." And so the reproduction of inferior groups had to be controlled.
The ERO -- along with the American Breeders Association, the Race Betterment Foundation (founded by Kellogg, the cereal magnate), and the American Eugenics Society -- advocated eugenics laws that were institutionalized in about half of the US states.

Some states sterilized "imbeciles" for much of the 20th century. The U.S. Supreme Court ruled in the 1927 Buck v. Bell case that the state of Virginia could sterilize those it thought unfit. The most significant era of eugenic sterilization was between 1907 and 1963, when over 64,000 individuals were forcibly sterilized under eugenic legislation in the United States. A favorable report on the results of sterilization in California, the state with the most sterilizations by far, was published in book form by the biologist Paul Popenoe and was widely cited by the Nazi government as evidence that wide-reaching sterilization programs were feasible and humane. When Nazi administrators went on trial for war crimes in Nuremberg after World War II, they justified the mass sterilizations (over 450,000 in less than a decade) by citing the United States as their inspiration. [source]

The ERO received a great deal of private funding from railroad and steel magnates. Among the notable leaders of the ERO and the eugenics movement was the father of the telephone, Alexander Graham Bell. He served as the chairman of the board of scientific advisers at the ERO and advocated compulsory sterilization of those he considered "a defective variety of the human race."

 An especially appropriate host for this project, the Cold Spring Harbor Laboratory was a center of research for the Human Genome Project, and ... served as the Eugenics Record Office during the early part of the last century. The website, first launched in January 2000, underwent a significant upgrade last November, and offers a series of Flash-interactive exhibits and a searchable image archive with more than 2,500 photographs, letters, articles, and scientific reports related to the eugenics movement. (Those who might prefer a lower-bandwidth, mainly HTML version of the site will find a link to the original production at the bottom of the Splash page.)
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

Offline TahoeBlue

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Oh and the Fiorina / HP - Deutsche Bank connection: which connects with Deutsche Bank / Bankers Trust

HP had retained Deutsche Bank's investment banking division in January 2002 to assist in the merger

Yes she is, I met her way back when, and she seemed like she was on valium or some other prescription drug.... psy-tropic? She was given a job to do and she succeeded.  I remember the Compaq merger and alot of employees for Compaq got canned.

Also note that Compaq handled a majority of Server Data centers throughout the world, so the merger got HP's foot and body in the door of every major data center in the world.

Just remember that this is just a "Share cropper's economy" (for the majority of us) "free enterprise - RIGHT!"

For HP CEO Carly Fiorina it was "Mission Complete" .

In 2001, Compaq engaged in a merger with Hewlett-Packard. Numerous large HP shareholders, including Walter Hewlett, publicly opposed the deal, which resulted in an impassioned public proxy battle between those for and against the deal.[16]

The merger was approved only after the narrowest of margins, and allegations of vote buying (primarily involving an alleged last-second back-room deal with Deutsche Bank) haunted the new company.[citation needed]

It was subsequently disclosed that HP had retained Deutsche Bank's investment banking division in January 2002 to assist in the merger. HP had agreed to pay Deutsche Bank $1 million guaranteed, and another $1 million contingent upon approval of the merger. On August 19, 2003, the United States Securities and Exchange Commission charged Deutsche Bank with failing to disclose a material conflict of interest in its voting of client proxies for the merger and imposed a civil penalty of $750,000. Deutsche Bank consented without admitting or denying the findings.[17]
Fiorina helmed HP for nearly three years after Capellas left. HP laid off thousands of former Compaq, DEC, HP, and Tandem employees,[18][19] its stock price generally declined and profits did not perk up. Though the merger initially made it the number one PC maker, it soon lost the lead and further market share to Dell. In addition, the merging of stagnant Compaq with HP's lucrative printing and imaging division was criticized as that overshadowed the latter's profitability. In February 2005, the Board of Directors ousted Fiorina. Former Compaq CEO Capellas was mentioned by some as a potential successor, but several months afterwards, Mark Hurd was hired as CEO.
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

Offline TahoeBlue

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HP's layoffs will exceed 55,000 people, CFO says
Julie Bort
Aug. 20, 2015, 6:49 PM

HP Enterprise CEO Meg Whitman

HP's CFO Cathie Lesjak says the company will cut up to an additional 5% more people from its workforce than the 55,000 people it had planned to eliminate.

This is a long-running layoff that began in 2012 with an initial target of 25,000 jobs, but grew until the target became 55,000 people.

Now it's grown again. Lasjak didn't give a new total number although she said the additional job cuts won't force HP to spend more on restructuring than it had planned.

Read more:
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5