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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (226407)	2/11/2002 9:04:41 PM
From: Zoltan!	Respond to of 769670

I believe Rubin made most of his fortune selling the Mexican bonds for Goldman Sachs. In that sense, the Mexican bailout was a bailout of Goldman's clients.

To: DuckTapeSunroof who wrote (226407)	2/11/2002 9:23:52 PM
From: Zoltan!	Read Replies (1) \| Respond to of 769670

Wrong. ...Much has already been reported about Robert Rubin and his old firm's interests in Mexico, but there is one point that bears mentioning again. Rubin spearheaded Goldman's move into Mexico, and the firm had steered billions of dollars to that emerging market over the years. The peso crisis of 1993-94 came to a head just as Rubin was becoming treasury secretary. His one-year recusal from dealing in matters affect ing Goldman Sachs had ended. By helping Mexico to make good on its commitment to bondholders, the $20 billion U.S. portion of the bailout was viewed by some as a publicly financed, insurance policy for Rubin and Goldman Sachs, along with other large investment houses and banks that were highly exposed in Mexico. Rubin was a partner in the firm and could be civilly liable for claims by investors. Mexico has already used the bailout money to pay back investment banks. If the bailout was not a guarantee, the investment community was further reassured by the "Framework. Agreement For Mexican Economic Stabilization," signed by Treasury Secretary Rubin and the Mexican Ministry of Finance on February 21, 1995. The document gave the Department of the Treasury "the right to distribute, in such manner and in such order of priority as it deems appropriate" the Mexican export, revenues it now controls. In other words, Robert Rubin had the power to grant first right of payment to whomever he chooses, including the holders of Mexican bonds purchased from Goldman Sachs." (1996, p. 54-57). publicintegrity.org