Commentary Magazine


Topic: Paolo Pellegrini

Flotsam and Jetsam

Cleaning up Undersecretary Michele Flournoy’s mess (“Military force is an option of last resort. It’s off the table for now”), a Pentagon spokesman: “We are not taking any options off the table as we pursue the pressure and engagement tracks. … The president always has at his disposal a full array of options, including use of the military … It is clearly not our preferred course of action but it has never been, nor is it now, off the table.” Never underestimate how incompetent this crew is.

Is the Goldman Sachs case a big mess? “The testimony of a former Paulson & Co official could undercut the Securities and Exchange Commission’s fraud case against Goldman Sachs, CNBC has learned. The former Paulson lieutenant, Paolo Pellegrini, testified that he told ACA Management, the main investor in a Goldman mortgage-securities transaction, that Paulson intended to bet against—or short—the portfolio of mortgages ACA was assembling. If true, the testimony would contradict the SEC’s claim that ACA did not know Paulson was hoping the mortgage securities would fail and weaken charges that Goldman misled investors by not informing ACA of Paulson’s position.”

Did the White House mess with the SEC? “President Barack Obama is brushing off suggestions that the White House influenced the timing of fraud charges against Goldman Sachs. In an interview set to air Wednesday on CNBC, Obama said the White House had nothing to do with the Securities and Exchange Commission’s decision to file fraud charges Friday against Goldman Sachs.” It was just a grand coincidence, I suppose.

Too messy for Blanche Lincoln: “Sen. Blanche Lincoln, under fire for keeping a $4,500 contribution from Goldman Sachs’s political action committee, has canceled a fundraising lunch with Goldman executives that was scheduled for Monday and would have netted many times that amount for the Arkansas Senator’s reelection campaign.”

Lots of people think the country is a mess: “Sixty-one percent (61%) of all voters now say the nation is heading down the wrong track, down slightly from last week but just one point above the lowest level of pessimism measured since last October.”

Robert Gates is in charge of keeping the messes to a minimum: “That new administration’s rapidly getting old, but Gates continues to serve, struggling to limit the damage done to our national defense. Recently, he fought to keep our new nuclear-giveaway treaty with Russia within tolerable bounds. That treaty’s bad — but without Gates it would have been worse. Now we know that he was also pushing on Iran. Last week, somebody (not Gates) leaked a January memo the SecDef sent to the White House. The message? We need to prepare for all contingencies regarding Iran. Now.”

The ongoing Massa ethics mess: “The top members on the House ethics committee interviewed Majority Leader Steny Hoyer (D-Md.) on Wednesday afternoon – just hours after the ethics panel created a special subcommittee to investigate sexual harassment allegations surrounding former Rep. Eric Massa (D-N.Y.).”

That mess widens: “The FBI is investigating the case of former Rep. Eric Massa, accused by his onetime male staff members of sexual harassment.”

Cleaning up Undersecretary Michele Flournoy’s mess (“Military force is an option of last resort. It’s off the table for now”), a Pentagon spokesman: “We are not taking any options off the table as we pursue the pressure and engagement tracks. … The president always has at his disposal a full array of options, including use of the military … It is clearly not our preferred course of action but it has never been, nor is it now, off the table.” Never underestimate how incompetent this crew is.

Is the Goldman Sachs case a big mess? “The testimony of a former Paulson & Co official could undercut the Securities and Exchange Commission’s fraud case against Goldman Sachs, CNBC has learned. The former Paulson lieutenant, Paolo Pellegrini, testified that he told ACA Management, the main investor in a Goldman mortgage-securities transaction, that Paulson intended to bet against—or short—the portfolio of mortgages ACA was assembling. If true, the testimony would contradict the SEC’s claim that ACA did not know Paulson was hoping the mortgage securities would fail and weaken charges that Goldman misled investors by not informing ACA of Paulson’s position.”

Did the White House mess with the SEC? “President Barack Obama is brushing off suggestions that the White House influenced the timing of fraud charges against Goldman Sachs. In an interview set to air Wednesday on CNBC, Obama said the White House had nothing to do with the Securities and Exchange Commission’s decision to file fraud charges Friday against Goldman Sachs.” It was just a grand coincidence, I suppose.

Too messy for Blanche Lincoln: “Sen. Blanche Lincoln, under fire for keeping a $4,500 contribution from Goldman Sachs’s political action committee, has canceled a fundraising lunch with Goldman executives that was scheduled for Monday and would have netted many times that amount for the Arkansas Senator’s reelection campaign.”

Lots of people think the country is a mess: “Sixty-one percent (61%) of all voters now say the nation is heading down the wrong track, down slightly from last week but just one point above the lowest level of pessimism measured since last October.”

Robert Gates is in charge of keeping the messes to a minimum: “That new administration’s rapidly getting old, but Gates continues to serve, struggling to limit the damage done to our national defense. Recently, he fought to keep our new nuclear-giveaway treaty with Russia within tolerable bounds. That treaty’s bad — but without Gates it would have been worse. Now we know that he was also pushing on Iran. Last week, somebody (not Gates) leaked a January memo the SecDef sent to the White House. The message? We need to prepare for all contingencies regarding Iran. Now.”

The ongoing Massa ethics mess: “The top members on the House ethics committee interviewed Majority Leader Steny Hoyer (D-Md.) on Wednesday afternoon – just hours after the ethics panel created a special subcommittee to investigate sexual harassment allegations surrounding former Rep. Eric Massa (D-N.Y.).”

That mess widens: “The FBI is investigating the case of former Rep. Eric Massa, accused by his onetime male staff members of sexual harassment.”

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