Henry Paulson, Secretary Treasury from mid-2006 through the end of Bush the Younger's two terms, wrote an op-ed in the Washington Post where he swore fealty to Hillary Clinton, whose speeches to Wall Street firms, e.g. Goldman Sachs and the Carlyle Group, generate around $250,000 a pop.
Paulson declared that "we are witnessing a populist hijacking of one of the United States great political parties."
He gave this assessment on the day after the Brexit vote announced to the world that a majority of Britain's population, like Americans, have had their fill of globalization, with China, a major beneficiary of globalization along with the world's elites, shuddering at the prospect of a reduction of their fiefdom.
True, the Republican Party has always been in lockstep with Wall Street: the chief business of the American people is business, and all that.
Paulson continued with: "Here, the 'Art of the Deal' businessman is a master at advantaging himself over his fellow stakeholders and partners. In essence, he takes imprudent risks and, when his businesses fail, disavows his debts."
Paulson has a great deal of experience in taking imprudent risks and advantaging himself given his tenure at Goldman Sachs, where he worked starting in 1974, eventually making his way up to chief executive, until his knighthood in 2006. Not to mention being a charter member of Time Magazine's 25 People to Blame for the  Financial Crisis.
Last April, Goldman Sachs agreed to pay a $5.06 billion settlement relating to its "conduct in the packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities (RMBS) between 2005 and 2007," with all that having occurred on Paulson's watch. This money went for claims from the National Credit Union Administration, the Federal Home Loan Bank of Des Moines as successor to the Federal Home Loan Bank of Seattle, the Federal Home Loan Bank of Chicago, the states of New York, Illinois, California, and New York, and other groups. $1.8 billion was earmarked for "relief to aid consumers harmed by its unlawful conduct."
"Todays settlement is yet another acknowledgment by one of our leading financial institutions that it did not live up to the representations it made to investors about the products it was selling," said U.S. Attorney Benjamin B. Wagner of the Eastern District of California.
Wagner is referring to the Wall Street practice of securitization, where firms created a security containing some reputable mortgages but mainly subprime ones, all the while promising investors that the bundle was full of nothing but quality paper.
In 2005, Goldman Sachs securitized $68 billion in residential mortgages and $23 billion in "other assets" primarily related to CDOS.
"This resolution holds Goldman Sachs accountable for its serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail," said Acting Associate Attorney General Stuart F. Delery.
It pales in comparison to the April 2016 settlement, but Goldman Sachs paid a $550 million fine in 2010, admitting that it "failed to disclose to investors vital information about the CDO, known as ABACUS 2007-AC1." Goldman Sachs had "misstated and omitted key facts regarding a synthetic collateralized debt obligation (CDO) it marketed that hinged on the performance of subprime residential mortgage-backed securities."
Admittedly, Paulson had departed Goldman Sachs in 2006, but the toxic environment had already been well established.
Robert Khuzami, at that time the director of the SEC's Division of Enforcement, stated: "Half a billion dollars is the largest penalty ever assessed against a financial services firm in the history of the SEC."
Lorin L. Reisner, Deputy Director of the SEC's Division of Enforcement, added: "The unmistakable message of this lawsuit and today's settlement is that half-truths and deception cannot be tolerated and that the integrity of the securities markets depends on all market participants acting with uncompromising adherence to the requirements of truthfulness and honesty."
One problem with ABACUS 2007-AC1 was that John Paulson of Paulson & Company had taken a short position against the CDO, contrary to the optimistic situation Goldman Sachs was portraying, comparable to a used car salesman selling you a car with defective brakes and then placing a bet that you would end up in a crash.
John Paulson primed the North Carolina-based Center for Responsible Lending (CRL) pump with $15 million to arm-twist banks into giving subprime loans to unqualified borrowers. He also paid Goldman Sachs another $15 million to design CDOs comprised of specific subprime mortgages that he selected. His fund's take from the scheme was around $1 billion, not a shabby return on his investment.
Henry Paulson exhibits Wall Street chivalry in his preference for Hillary Clinton over Donald Trump. She said in a meeting arranged by Goldman Sachs at the Conrad Hotel in lower Manhattan that the banker-bashing so popular within both political parties was unproductive and indeed foolish, perhaps even tilting at windmills. Goldman Sachs' Tim O'Neill, who heads the bank's asset management business, introduced Clinton by saying how courageous she was for speaking at the meeting for specially selected Goldman Sachs investors. She's so daring, our Hillary, especially for a $200,000 minimum charge for her verbal services.
Remember your mother's warning about running with caesars.