Felix Salmon and Reuters highlights a damning passage from Andrew Ross Sorkin’s new tome on the decline and fall of the global economy. It details a late June 2008 meeting between then Treasury Secretary Hank Paulson and the board of Goldman Sachs, his former firm, at the Marriott Grand in Moscow:
Paulson regaled his old friends with stories about his time in Treasury and his prognostications about the economy. They questioned him about the possibility of another bank blowing up, like Lehman, and he talked about the need for the government to have the power to wind down troubled firms, offering a preview of his upcoming speech.
Paulson had gotten a special waiver to attend this confab as a purely “social” event. But he proceeded to offer his fellow Goldman tribe members bankable information.
This begs for a Congressional hearing.
UPDATE: This really calls for a Congressional hearing