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Phone Records Show Frequent Calls Between Paulson and Goldman Sachs CEO

HeadlineAug 10, 2009

The New York Times has revealed President Bush’s Treasury Secretary Henry Paulson frequently spoke to the CEO of his former company, Goldman Sachs, as the federal government was deciding whether to bail out the failed insurance giant AIG. According to a copy of his calendar, Paulson spoke with Lloyd Blankfein, Goldman’s chief executive, two dozens times during the week of the AIG bailout last September. On September 17, Paulson and Blankfein spoke five times. The government eventually agreed to lend $85 billion to AIG, which used the money to pay off Goldman Sachs and other big banks that were financially threatened by AIG’s potential collapse. Paulson served as Goldman Sachs’s CEO prior to becoming Treasury Secretary.

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