How A Bank Controls The US Government

Goldman Sachs :

Goldman Sachs is one of the biggest investment banks. Goldman Sachs is known for its risk management and making a profit during the hardest times. It was started by Marcus Goldman, a Jewish immigrant from Europe. He started working as a tailor in the United States. A few years later, he moved to New York and started a bill discounting business. Over the years he diversified into IPO listing. With increasing profits Marcus Goldman teamed up with his son-in-law Samuel Sachs and started the investment banking division of Goldman Sachs. They mostly served wealthy clients and Governments all over the world. One of the most IPOs Goldman Sachs underwrote was Walt Disney.

Goldman Sachs' IPO :

Goldman Sachs was operating as a partnership firm, where partners put their own money and the firm does trading and investment with this money. In the mid and late 20th century, many Goldman Sachs' competitors took the IPO route and they made billions of dollars in profit. Goldman Sachs launched it's IPO in 1999 and raised over $3.9 billion. It was one the biggest IPO of that time. 

Goldman in Washington :

With money under their belt and a growing list of clients, Goldman Sachs decided to try their luck in policymaking and Government. Some of the top names of the bank went to work for the Various presidents of the United States. The first of the batch was Robert Rubin, who became the director of the National Economic Council to President Bill Clinton.

The Goldman Government :

So far Goldman Sachs has given 3 secretary of treasury ( equivalent to Minister of Finance ) 3 members of National Economic Council, 2 Directors of National Economic Council, 1 member of National Security Advisory Council, 3 chairman of the Federal Reserve ( The Central Bank of USA ). Since Bill Clinton, every US president has former Goldman Sachs executive in higher positions.

Hands in Policymaking :

Robert Rubin is the man behind the bill/act that allowed the wall street banks to become bigger and powerful. This bill removed the limitations on the banks investment in the stocks and capital markets with deposits. He was also the man behind the deregulation of banks in the United States. Henry Paulson, another Goldman's former executive who was the secretary of the Treasury during the global economic crisis of 2008. He oversaw the $700 billion bank bailout. Gary Cohen was the director of the National Economic Council during Trump administration. Cohen proposed and oversaw the corporate tax cuts during the Trump administration.

Goldman in 2008 crisis :

We all know about how Michael Burry predicted the Housing Market crisis of 2008. But may be the Goldman Sachs was the first to predict the housing crisis much before the Michael Burry. 

The company started to shorted the housing market in late 2006 while the company continued to underwrite more mortgages. Goldman maintained it was a hedge against their mortgage underwritings. When another Big American Bank, Lehman Brothers went bankrupt, the same day Goldman got an investment worth $5 billion from Warren Buffet in the middle of the crisis. Goldman also earned from the debt restructuring of other banks during the crisis. When the crisis was over and dust settled, Goldman Sachs came out as probably the only bank that benefited from the crisis.

Government Sachs : 

Due to its close relation with the Government of the United States and well placed former executives, Goldman Sachs has earned the Nick name of Government Sachs.