Should financing human rights’ violators help fund US pensions?

Sir, I refer to Colby Smith’s “Year began with ‘hardcore fear of missing out’ but now holders of Caracas debt have lost hope” December 21

I wonder how one can discuss the chances of creditors collecting on Venezuela’s debts, ignoring that their funds have all gone to finance a notoriously corrupt and inept government that has and is evidently committing crimes against human rights?

Odious debts is mostly the direct result of odious credits…

With respect to the sanctions of Venezuela by the US Treasury’s Office of Foreign Assets Control, an international bondholder is quoted. “These sanctions were just a disaster, and all this has done is damage holders of the bonds, many of which manage money for US pensioners.” Really in these days when financing of good social purposes is promoted, like to finance the sustainable development goals, SDG’s, should financing human rights’ violators really help fund pensions?

Frankly, “Fidelity, T. Rowe Price, BlackRock and Pimco” as well as Goldman Sachs should all be shamed; and tell us the name of that “one bondholder group holding $8bn of Venezuela’s debt”, because such exposures do not happen without very close and incestuous contacts with the government.

@PerKurowski

High interest rates on sovereign bonds are often just vulgar kickbacks offered by corrupt regimes.

Sir, Jim Sanders correctly points out “Where the money from sovereign bonds goes within developing country governments is rarely, if ever, the subject of reporting in the financial press. Nor does there appear to be a regulatory regime in place to monitor how money raised from bond issues is spent.” “Emerging market bonds are a risky business” March 19.

Of course not, way to often lenders, attracted by profit opportunities, quite on purpose turn a blind eye on that, much preferring the bliss of ignorance. 

Just as an example in May 2017, Goldman Sachs handed over about US$800 million to the notoriously corrupt, criminal and human rights violating government of Venezuela, in order to obtain $2.8billion Venezuelan bonds paying a 12.75% interest rate, which if repaid would provide GS with about a 42% yearly return, 2.000% more than what US pays.

It is clear that when it comes to our sovereigns taking on debt, that perhaps our children will have to repay, we citizens much more than credit ratings need ethic ratings; and a clear definition of what should be considered as odious credits, and the consequences for any credit that ends up qualified as such.

Personally I consider a level of sovereign debt that allows for contracting it in emergencies at reasonable rates, as a strategic asset, which no one should take away from future generations, without overwhelming reasons.

@PerKurowski

Venezuela poses a unique opportunity, for all citizens of the world, to clearly define what should be considered as odious credits, and how these should be treated.

Sir, Colby Smith and Robin Wigglesworth quote a holder of Venezuelan debt with: “The ultimate objective is to reach a point where [Venezuela] regains market access at market-determined terms without the risk of renewed default”,“Venezuela debt fight pits veterans against hot-headed newcomers” March 13.

It is absolutely clear Venezuela needs much financing to reconstruct its entire run down basic infrastructure but, as a citizen, having seen how much public indebtedness goes hand in hand with corruption and waste, and how it so often makes it harder for the private sector to finance its needs, I would not mind Venezuela not reaching that “ultimate objective” for a long-long time, especially not as long as the government already receives directly all oil revenues.

Our Constitution clearly establishes that all “Mineral and hydrocarbon deposits of any nature that exist within the territory of the nation… are of public domain, and therefore inalienable and not transferable” and yet 99% of the debt it contracts is implicitly based on its creditors having access to the revenues produced by extracting Venezuela’s non-renewable natural resources, mainly oil. 

So now, the least our legitimate creditors could do, is to help us extract oil; and to that effect the following is a message I have been tweeting for about two years: “For Venezuelans to be able to eat quickly, starts by quickly handing over PDVSA’s junk to its and Venezuela’s creditors, so that they quickly put it to work, to see if they are able to quickly collect something, so to pay us citizens, not bandits, some oil royalties quickly”

But, that said, what is most important is to classify all Venezuela’s debts. Many of these were not duly approved; others had a large ingredient of corruption and lack of transparency and so all these must be scrutinized in order to establish their legitimacy.

For example, when Goldman Sachs in May 2017 handed over $800 million cash in exchange for $2.8billion Venezuelan bonds paying a 12.75% interest rate, to a notoriously corrupt and inept regime that was committing crimes against humanity. Especially since Lloyd Blankfein cannot argue an “I did not know”, that to me is as odious as odious credits come.

Sir, it behooves all citizens of the world to use this opportunity to set up an adequate defense against governments anywhere, mortgaging their future with odious credit/odious debts.

That also includes stopping statist regulators from distorting with a 0% risk weight the allocation of bank credit in favor of the sovereign, against the 100% risk weighted citizens. 

@PerKurowski

Why should Goldman Sachs financing 1Malaysia Development Berhad (1MDB) be worse than it financing Venezuela’s Maduro’s regime?

David Crow and Laura Noonan in an FT The Big Read write, “Goldman is under increasing scrutiny over its role in underwriting $6.5bn of bond offerings for 1MDB in 2012 and 2013, a service for which it reaped a hefty $600m in fees and trading gains. After the money was raised, $2.7bn was allegedly siphoned off by the Malaysian financier Jho Low, who is accused of masterminding the fraud, to pay for a lavish lifestyle and to bribe Malaysian officials.” “Tim Leissner: Goldman Sachs banker at the heart of 1MDB scandal” December 24.

Sir, why should this operation be considered so worse than when, in May 2017, Goldman Sachs, Lloyd Blankfein approved to hand over about US$800 million to the notoriously corrupt, criminal and human rights violating government of Venezuela’s Maduro?

GS, in exchange for their money obtained $2.8billion Venezuelan bonds paying a 12.75% interest rate, which if repaid would provide GS with about a 42% yearly return, 2.000% more than what US pays. Is that not bribing foreign government officials and should therefore perhaps fall under the Foreign Corrupt Practices Act of 1977?

With respect to money being siphoned off, if anyone in GS doubts that much of that loan did not go the same route, then the days of GS are soon over. Such naiveté does not survive in the world of finance.

We are now in December 2018, and still not the slightest sign of a "Sorry Venezuelans" from Lloyd Blankfein. An elite, aware of its true responsibilities, would be shaming Lloyd Blankfein… and surely not inviting him to their homes. 

@PerKurowski

If elites do not socially sanction those they should sanction, there’ll be no society left to sanction.

Sir, Laura Noonan writes “Goldman Sachs is considering a special surveillance programme to monitor higher-risk employees in far-flung locations so the bank can demonstrate that “lessons have been learnt” from the 1MDB scandal” “Goldman eyes monitoring of high-risk staff after 1MDB”, December 3.

Great, but they should also monitor high-risk bosses in home office locations, like Mr. Lloyd Blankfein. And I here refer to that lending by him and Goldman Sachs to a notoriously inept, notoriously corrupt, notoriously human rights violating regime of Venezuela’s Maduro.

Do I want Goldman Sachs’ Lloyd Blankfein to be punished by the justice? No! I much prefer the elite; universities, media among others should do that, shaming him, by socially sanctioning him, by for instance not inviting him to anything.

Sir, do not give Lloyd Blankfein, or an unrepentant Goldman Sachs, one inch more of space in the Financial Times, they do not deserve it.

PS. To this date Lloyd Blankfein has not been able to find in himself to utter the slightest “I’m sorry Venezuelans”.

PS. But perhaps justice might also have a bone to pick with Blankfein.

@PerKurowski

Any banker, like Goldman Sachs’ Lloyd Blankfein, who does not ask the borrower “What are you going to use the money for?” should not be allowed to be a banker.

Sir, David Crow and Laura Noonan, with respect to the Malaysian financier-cum-socialite known as Jho Low scandal that I know nothing about write, “Goldman has always maintained that it did not know how the proceeds of the bond offering were spent” “Blankfein revelation piles pressure on Goldman”

I guess just like Lloyd Blankfein was not interested in how that notoriously human rights violating regime of Maduro’s in Venezuela was going to use the funds Goldman Sachs provided it, because all he cared about was whether the risk premiums were juicy enough to support his bonus aspirations.

Sir, again, corrupting not some government official but the regime itself, by offering fresh money in return for the possibility of huge returns, sounds to me like something quite punishable by US’s Foreign Corrupt Practices Act (FCPA).

We are now in November 2018, and Mr Blankfein has not found it within himself to yet utter the smallest “Venezuelans, I am so sorry”

Sir, what kind of elite do we have when a Lloyd Blankfein still gets invited to all kind of academic and social engagements? If the elite gives up on holding their own accountable, it is lost. 

@PerKurowski

Goldman Sachs’ Lloyd Blankfein has also a big question to answer us Venezuelans.

Sir, Brooke Masters writes that when “Sued by the US Securities and Exchange Commission over allegations it had misled clients about mortgage-backed securities… Lloyd Blankfein… launched a top-to-bottom cultural review and spent 18 months visiting clients to reassure them that Goldman had got the message on ethics.” “Goldman Sachs has big questions to answer” November 7.

So Masters rightly asks so what happened as “Last week, the US Department of Justice revealed that two former senior Goldman bankers had been criminally charged with helping to loot 1MDB, a Malaysian state investment fund that authorities allege was victim of one of the biggest frauds of all time.”

Sir, I have my own question. After Mr Blankfein’s much-touted ethics revamp in 2011, what on earth was he doing lending, in May 2017, to a notoriously human rights violating odious regime, namely Venezuela’s Maduro’s?

In fact, as I see it, corrupting not some government official but the regime itself, by offering fresh money in return for the possibility of huge returns, sounds to me as something quite punishable by US’s Foreign Corrupt Practices Act (FCPA).

We are now in November 2018, and Mr Blankfein has not found it within himself to yet utter the smallest “Venezuelans, I am so sorry”

Sir, what kind of elite do we have when a Lloyd Blankfein still gets invited to all kind of academic and social engagements?

@PerKurowski

The risk premiums for a suspect of human rights violating nation will increase, which, sadly, will also attract investors

Sir, Gillian Tett, with respect to how business should or could behave in cases of human rights violations, like that of Khashoggi, if confirmed, writes: “since western businesses are scrambling to maintain their investments there at a time of rising Sino-American tensions. “What will we do the next time that the Chinese toss dissidents in jail or clamp down on local journalists?” asks one chief executive. The answer is not clear.” “The Khashoggi case puts US businesses in a moral bind”, October 19.

How much has the risk premiums required by anyone wanting to invest in Saudi Arabia gone up after the Khashoggi incident, and after how Saudi Arabia reacted against Canada when its Foreign Affairs Minister Chrystia Freeland tweeted concerns about the news that several social activists had been arrested in Saudi Arabia? These must have increased a lot, and an initial public offering of the Saudi oil giant Aramco is rumored cancelled.

That costs of course the human rights violating nation a lot… but those higher risk premiums also attract… as we can notice when a Goldman Sachs finances a notorious human rights violating regime like Venezuela’s Maduro’s.

The answer to the chief executive’s what to do question, should have to include “what our shareholders have mandated us”. Unfortunately too many shareholders also turn a blind eye to ugly realities, when for instance a Goldman Sachs announces record returns on equity.

What do we lack? Perhaps the will of a responsible elite that is willing to shame those who behave in a disgraceful manner, in a completely apolitical way. We need a society whose members would not invite Goldman Sachs’ Lloyd Blankfein to have tea at their homes. 

Sir, I have not been able to find the reference to it on the web but, some years ago, in Swedish television, I remember having heard something about a Swedish king who said he feared more the opinions of Stockholm’s high societies ladies than Russia. 

@PerKurowski

When will the world stop referring to those giving odious loans, odious credits, as investors?

Sir, the Lex column “Venezuela debt/Maduro: crypto communist” of August 23 writes: “It beggars belief that a country with the world’s largest oil reserves has failed financially…when prices for oil, its sole commodity, fell. Borrowing has filled the gap… Investors, including the asset management arm of Goldman Sachs, can look forward to a lengthy default”

In your editorial of August 22, “The desperate plight of Maduro’s Venezuela” you wrote: “Much of the world, especially supporters of “Chavismo” from the Panglossian left, has been disgracefully silent about Venezuela’s crisis for too long. The country is all but a failed state. As a drug-trafficking hub and the source of a huge exodus, it is already an exporter of instability.”

And I must ask when is the world going to stop referring to those who help finance regimes that are notoriously inept or/and commits awful violation of human rights as “investors”, and not as the lowly and dirty financiers they are?

Is for instance financing the smuggling of drugs more morally reprehensible than financing a regime like Maduro’s? Would you ever dream of introducing to your family and friends one who had helped finance the construction of Auschwitz, as an investor?

Yes, credit ratings might be needed, but more does the world need ethic ratings. It is way past time the world begins to understand that most odious debt there is, has its origin in odious credits, and that we need a Sovereign Debt Restructuring Mechanism that takes that in consideration.

http://unsustainabledebtsustainability.blogspot.com

@PerKurowski

Auditing is important, but what causes a disaster, is more important than how it is being accounted.

Sir, “FT Big Read. Auditing in crisis: Setting flawed standards” of August 2, discusses, among other, the huge divergence of figures in the auditing of the value of derivative exposures of AIG and of Goldman Sachs, even though their auditor was the same, in this case PricewaterhouseCoopers. 

That it was “striking how little was verifiable, that there were few credible market prices, let alone transactions, to support the key valuations”, explains much of the divergence.

Sharon Bowles, former chair of the European Parliament’s economic and monetary affairs committee explains it with: “Accounts have always contained estimates; think of the provisions companies make against foreseeable future losses, but the un-anchoring of auditing from verifiable fact has become endemic.”

That “un-anchoring from verifiable facts” is not limited to auditing. 

Sir, for the umpteenth time, without absolutely no verifiable facts, regulators concocted their risk weighted capital requirements for banks, based on the quite infantile feeling that what was perceived risky must be more risky to the bank system than what was perceived safe. In fact what could have been verified, if only they had looked for it, was the opposite, namely that what’s perceived safe is more dangerous to our bank systems than what’s perceived risky.

With that the regulators assigned to AAA rated AIG, by only attaching its name to guarantee an asset, the power to reduce the capital requirements for investment banks in the US, and for all banks in Europe, to a meager 1.6%. That translated into an allowed 62.5 times leverage. Let me assure you Sir that without this the whole AIG and Goldman Sachs incident described would never have happened. 

As always, what causes the problems is much more important than how the problems are accounted for. Though of course I agree, sometimes bad-accounting could in itself be the direct cause of the problems. 

The article also refers to “the so-called efficient markets hypothesis… that now somewhat discredited theory”. Sir, no markets have any chance to be credited with performing efficiently with such kind of distortions. For instance how verifiable is it now that sovereign debt is as risk-free as markets would currently indicate, when statist regulators have assigned it a 0% risk free weight, and are thereby subsidizing it?

@PerKurowski

For some, Lloyd Blankfein will be not kindly remembered and one of those who financed Venezuela’s Nicolas Maduro

Sir, Robert Armstrong, Laura Noonan and Arash Massoudi write that “Mr Blankfein may be remembered as the last leader of a Goldman Sachs that ruled Wall Street and the first leader of a sedate provider of financial services” “Blankfein’s legacy still up for grabs at Goldman” July 17.

Many, or at least some of us Venezuelans, will with fury remember Goldman Sachs’ Lloyd Blankfein, as one that helped finance a regime that publicly and notoriously violates human rights.

I just wonder if the Britain of Financial Times had had a regime like that of Nicolas Maduro, what is it would be saying of the legacy of someone who had helped to finance it? “Doing God’s work”? Well definitely not my God’s Sir.

Or is it too political incorrect for the elites to hold one like Lloyd Blankfein accountable for his doings? If so, what truly poor elites the world has to count on.

@PerKurowski

Let’s make sure that environmental, social and governance investing does not just signify ESG profiteering, or access to indulgences for paying worse sins.

Sir, John Authers writes: “On the side of the devil, ESG offers a rebranding for an unpopular industry, an excuse for data providers to crunch a lot of data and then charge for it” “Pressure for ESG presents fund management chiefs with a moral dilemma” May 31.

That is right on the dot. In all these political correct issues, what is by far the most present is the profit motive for those preaching it... morality is much absent

In terms of defending the environment, I would much rather prefer a huge revenue neutral carbon tax, meaning all its revenues paid out in equal shares to all its citizens, than having the climate change fight profiteers gaming the fight and taking their cut. It is sufficiently difficult and expensive as is.

And in terms of “social” it is much better to use all potential profits to help fund a Universal Basic Income than to help fund the social fighters.

But what really upsets me is that good governance is on the list of good socially conscious investments. Much better, much clearer, would be to make sure bad governance is never ever financed.

Let me be absolutely clear. I would much rather prefer a Goldman Sachs’ Lloyd Blankfein being socially sanctioned, never ever more invited to a party in New York, for helping to finance a human rights violating regime like Venezuela’s Maduro’s, than allowing him to be able to purchase indulgencies to pay for his sins, by (profitably) financing some other “good” guys.

http://ourpiedaterre.blogspot.com/2017/04/solutions-that-share-out-all-benefits.html

http://myubi.blogspot.com/2017/01/my-universal-basic-income.html

https://unsustainabledebtsustainability.blogspot.com/2017/06/goldman-sachs-financing-of-venezuelas.html

@PerKurowski

Should one want to have anything to do with an investment bank like Goldman Sachs that finances odious regimes?

Sir, I have no idea about what Robert Smith describes in “Goldman questioned on Verisure debt sale”, November 10; and, though it sure sounds a bit shady, I have not enough interest in pursuing the understanding of it.

That said, I would have to add though: Do you really want to have anything to do with an investment bank that finances odious regimes, like that of Venezuela?

If yes, where do you draw the line? North Korea?

PS. The vultures out there should not forget that between the case of Argentina and that of Venezuela there are some fundamental qualitative ethical differences.

And all this suffering while gas (petrol) is sold at less than US$ 1 cent per gallon

https://teawithft.blogspot.com/search?q=Goldman+Sachs+Venezuela

@PerKurowski

If I were Puerto Rican I would be on my knees thanking President Trump. I wish he did the same for Venezuela.

Sir, with respect to President Trump informing the markets they should wave “goodbye” to Puerto Rico’s outstanding $74bn bonds, Gillian Tett writes: “it is hard to argue that the foreign investors deserve much sympathy: they bought Puerto Rico debt precisely because this offered sky-high yields to compensate for equally high risks.” "Puerto Rico’s recovery depends on debt forgiveness” October 6.

Precisely, the creditors should not be able to eat the cake and have it too.

I have often argued that in any restructuring process one would not want lenders who lent to the sovereign at low rates, or acquired sovereign debt when no repayment problems were envisaged, bona fide lenders, to receive the same treatment as those lenders who lending at high speculative rates, perhaps even helped to create the crisis that demands a debt resolution.

And, nothing discloses the frontiers between bona fide and speculative debts better than the expected risk premiums when debts are negotiated. Perhaps any sovereign debt that reflects a risk premium that exceeds for instance by 4 percent the lowest interest rate paid for similar debt to other sovereigns, the speculative threshold rate, STR, should be classified as speculative sovereign debt, SSD.

And in the case of a restructuring of a sovereign debt, any creditor who entered in possession of his credit in conditions that would deem it to be a SSD, should have all interest received in excess of the allowed STR, automatically deducted from the principal.”

Would that work? I have no idea but at least it could help restrain creditors from financing sovereigns that have not earned the right to be financed.

PS. I wish President Trump would send a similar “goodbye” message to Goldman Sachs for financing the Venezuelan regime.

@PerKurowski

Worse than odious debt that some might feel urgently needed, is odious credit that needs not to be given

Sir, Robin Wigglesworth writes: “An archaic, often-mentioned but never-invoked legal doctrine called “odious debt” could be tested for the first time in history in Venezuela should the regime be ousted from power.” September 12.

I feel that for us citizens, everywhere, even more important than the concept of odious debt, is to define a legal doctrine on “odious credit”, this for the simple reason that the first would not exist without the latter.

In other words, are we to hold an uneducated trying to survive day-by-day thug like Nicolas Maduro, to higher moral standards than those highly educated in Goldman Sachs’ who, if their education is worth anything, should be able to survive without financing badly masqueraded violations of human rights? I think no!

Sir, we do need a Sovereign Debt Restructuring Mechanism, urgently, but if such an SDRM is really to mean something good for the world, then the concept of odious credit has to be an integral part to it.

http://unsustainabledebtsustainability.blogspot.com/2004/04/odious-credit.html

@PerKurowski

Could the Venezuelan National Assembly sue Goldman Sachs on behalf of Venezuelans for aiding and abetting a dictator?

Sir, Mitu Gulati writes: “a judge could find that the holders of Maduro bonds must have known that they were transacting with an unrepresentative or illegitimate agent of the people… Agency law goes beyond merely voiding the contract between the principal and the third party; a third party who suborns a betrayal of trust by the agent may be answerable in tort to the principal”, “Maduro bonds” Alphaville July 8.

So, could the Venezuelan National Assembly sue Goldman Sachs on behalf of Venezuelans for aiding and abetting a dictator and the violation of human rights?

Gulati also writes: “It is the Constituent Assembly itself and all of its works that the post-Maduro government must argue are unauthorized, invalid and illegitimate. And the longer that the Constituent Assembly stays in power, and makes the laws of the country, the more it begins to look like the real legislature”

That begs the question, if a President of USA, like Donald Trump had managed to create something as odiously farcical as Venezuela Constituent Assembly, how long would it take for it to begin to look like the real legislature? 100 years?

PS. A simple but complex question from a humble Venezuelan economist to an outstanding Venezuelan international lawyer

@PerKurowski

Like social bonds’ growth the antisocial bonds’ seem also to be doing fine

Sir, Kate Allen writes: “a host of other financial products have begun to emerge, promising to tackle social issues including homelessness, access to education, clean water, crime prevention and helping disadvantaged children…. The market is still small — just $3.5bn of social bonds were issued in the second quarter of 2017” “Ethical investing branches out from green roots” July 18.

And small it might really be when comparing to all of the antisocial financing that goes around. As an example just in that quarter the Maduro government of Venezuela, that one who is publicly and notoriously violating human rights and has its people starving and dying because of lack of food and medicines, sold $2.8bn in bonds. These antisocial bonds were initially picked up for a mere $800 million by a “with those possible returns, why should we give a shit about ethics”' Goldman Sachs.

Allen points out the fact that “The [social] bonds must perform socially as well as financially.” Yes, and if they don’t perform socially, as is clearly the case with Venezuela, then they should not perform well financially either. The Western civilization has an obligation to put a stop to odious anti-social financing. Otherwise our heirs will end up having to refer to that civilization as a once was.

Hopefully we will see an important socialite publicly disinviting a seemingly totally unrepentent Lloyd Blankfein from an important social event, because of Venezuela.

PS. I wonder how much $ in bonuses Blankfein will receive from this operation.

@PerKurowski

How does the social sanctioning of Maduro’s financiers compare to that of Trump’s bad taste Joe/Mika tweet?

Sir, John Paul Rathbone in reference to the helicopter event in Venezuela writes: in “a plot twist barely worthy of a B-movie… whatever actually happened, one thing is clear: Mr Maduro, nearly half of whose cabinet members are generals, now has an excuse to repress more.” “Venezuela’s B-movie drama is moving from farce into tragedy” June 30.

Really, is that an excuse? Really, do you think anyone declaring: “If we cannot win with votes we will win with weapons” (which is what Maduro really said) need an excuse?

Sir, and let us be more precise. Venezuela moved from farce (if ever it was a farce) to tragedy a long time ago. Just ask the 2 million, out of 32, who had already have had to migrate to foreign lands, abandoning friends and family.

There is currently an incredible amount of social sanctioning of Donald Trump because of his “Psycho Joe” – “Crazy Mika” tweet. Rightly so, but Trump’s bad taste tweet represented no crime against humanity and, when compared to Venezuela’s Nicolas Maduro, he is clearly more of a Church Boy.

So, comparatively speaking there has been extraordinary little sanction of those who, incapable of resisting juicy margins, finance the Maduro government, like Goldman Sachs. For instance, how many have closed out their accounts at Goldman Sachs or how many have disinvited Lloyd Blankfein from a social event?

Sir, when an elite becomes incapable of sanctioning one of its own, reality will come back and bite it.

PS. Watching my inbox fill up with solicitations of donations in order to fight Trump, every time he puts his foot in the mouth, which should indicate these mess-ups are strong motivators, indicates some could have a deep love-hate relationship with him.

PS. Goldman Sachs, Lloyd Blankfein. Want to see how your client Maduro teargasses young Venezuelans in a closed truck?

@PerKurowski

With the Venezuelan bonds purchase, has Goldman Sachs committed an act punishable under Foreign Corrupt Practices Act?

Sir I refer to Robin Wigglesworth’s and Gideon Long’s “Goldman hit by ‘hunger bond’ storm after Venezuela deal” June 2.

There are plenty of persons currently in jail in the US because of acts committed against the Foreign Corrupt Practices Act (FCPA). You can read about many cases in http://www.fcpablog.com

Goldman Sachs, has just handed over about US$865 million cash to the notoriously corrupt and human rights violating government of Venezuela, in order to obtain $2.8billion Venezuelan bonds, which according to some calculations seen, if repaid, would provide GS with about a 48% internal rate of return.

So, has Goldman Sachs, de facto, unwittingly, committed the mother of all corruptions acts punishable under the FCPA? 

http://perkurowski.blogspot.ca/2017/05/goldman-sachs-lloyd-blankfein-should.html

@PerKurowski

President Trump. Bankers have already way too much representation. Give the much-needed “risky” borrowers more voice

Sir, I refer to Sam Fleming’s and Alistair Gray’s “Bank’s president is latest alumnus to be tapped for a senior White House job” December 10.

Current bank regulations overtly favor banks earning much higher expected risk adjusted returns on equity when lending to something perceived as safe, than when lending to something perceived as risky, like to SMEs and entrepreneurs.

That of course delights bankers but the other side of the coin, is that the real economy is not getting its credit needs efficiently satisfied.

Therefore Trump would do a lot better assuring the perspective of “borrowers” is more represented in his government, than the clearly overrepresented perspective of bank lenders.

PS. I would love for Trump to convene the regulators and ask them a set of questions that they refuse to answer to someone as powerless as me… that is unless perhaps I threaten them with going on a hunger-strike.

@PerKurowski