From the beginning I have said that the bailout of the financial institution was designed to save Goldman Sachs. "Former Goldman Sachs employees such as Henry Paulson and Robert Rubin have held high positions in the federal government, regardless of which party was in the White House." As a result, some call the company Government Sachs hereafter just GS.
Finally the conflict of interest became too much for even the Wall Street Journal to ignore. Stephen Friedman was chairman of the board of the Federal Reserve Bank of New York, but also sat on the Board of Directors of GS and had a large holding in GS stock. As a federal reserve official, Friedman helped GS receive speedy approval to become a bank holding company in September and a $10 billion capital injection soon after. Then in December and January he purchased more GS stock.
This is illegal. See 18 U.S.C. 208.
There should be some arrests.