Goldman Sachs' Treasury - The Biggest Conflict of Interest Ever

From Wikipedia : (http://en.wikipedia.org/wiki/Goldman_Sachs)
Goldman Sachs has offices in all major world financial centers. The firm acts as a financial advisor and money manager for corporations, governments, and wealthy families around the world. Goldman offers its clients mergers & acquisitions advice, underwriting services, asset management, and engages in proprietary trading, and private equity deals. It is a primary dealer in the U.S. Treasury securities market

Hmmm, who is in charge of the U.S. Treasury securities market?

Henry Paulson, the Secretary of the U.S. Treasury. previously served as the Chairman and Chief Executive Officer of Goldman Sachs.

A wikipedia entry shows that: (http://en.wikipedia.org/wiki/Henry_Paulson)
Paulson's three immediate predecessors as CEO of Goldman Sachs — Jon Corzine, Stephen Friedman, and Robert Rubin — each left the company to serve in government: Corzine as a U.S. Senator (later Governor of New Jersey), Friedman as chairman of the National Economic Council (later chairman of the President's Foreign Intelligence Advisory Board) under President George W. Bush, and Rubin as both chairman of the NEC and later Treasury Secretary under President Bill Clinton.[14]

From Reuters : (http://www.reuters.com/article/topNews/idUSTRE4950BS20081006)
Treasury Secretary Henry Paulson is expected to name Neel Kashkari to oversee the $700 billion program to buy distressed assets from financial institutions, The Wall Street Journal reported on Sunday.

Kashkari was Treasury assistant secretary for international affairs and the former head of Goldman Sachs information technology security investment banking practice in San Francisco.

From the NY Times : (http://www.nytimes.com/2008/09/28/business/28melt.html?_r=1)
As the group, led by Treasury Secretary Henry M. Paulson Jr., pondered the collapse of one of America’s oldest investment banks, Lehman Brothers, a more dangerous threat emerged: American International Group, the world’s largest insurer, was teetering. A.I.G. needed billions of dollars to right itself and had suddenly begged for help.

One of the Wall Street chief executives participating in the meeting was Lloyd C. Blankfein of Goldman Sachs, Mr. Paulson’s former firm. Mr. Blankfein had particular reason for concern.
Although it was not widely known, Goldman, a Wall Street stalwart that had seemed immune to its rivals’ woes, was A.I.G.’s largest trading partner, according to six people close to the insurer who requested anonymity because of confidentiality agreements. A collapse of the insurer threatened to leave a hole of as much as $20 billion in Goldman’s side, several of these people said.

From Bloomberg - 9/22/2008 (http://www.bloomberg.com/apps/news?pid=20601087&sid=aUj_9.k13q7s&refer=home)
Goldman Sachs Group Inc. and Morgan Stanley may be among the biggest beneficiaries of the $700 billion U.S. plan to buy assets from financial companies while many banks see limited aid, according to Bank of America Corp.

From Wikipedia - (http://en.wikipedia.org/wiki/George_Herbert_Walker_IV)
George Herbert Walker IV (born April 1969) is a Managing Director at Lehman Brothers and is a second cousin to U.S. President George W. Bush.

Walker began his career on Wall Street when he joined Goldman Sachs in the Merger Department in 1992 and six years later, in 1998, became of one of the firm's youngest partners ever. He held several senior positions at Goldman, including co-head of the firm's Wealth Management business, and head of Alternative Investment strategies. In May 2006, Walker announced that he was resigning from Goldman Sachs to become global head of rival Lehman Brothers' Investment Management division.

From Wikipedia - (http://en.wikipedia.org/wiki/Lehman_Brothers)
Lehman Brothers - On September 15, 2008, the firm filed for Chapter 11 bankruptcy protection; the filing marks the largest bankruptcy in U.S. history.[2] The following day, Barclays plc announced its agreement to purchase, subject to regulatory approval, Lehman's North American investment-banking and trading divisions along with its New York headquarters building.[3][4] On September 20, 2008, a revised version of that agreement was approved by Judge James Peck.[5]