Houston Chronicle Sunday

Clinton’s ties to Goldman run deep

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A blue- ribbon commission had just excoriated Goldman Sachs and other Wall Street banks for fueling the financial crisis. Prosecutor­s were investigat­ing whether Goldman had misled investors.

But inspring 2011, Lloyd Blankfein, leading one of the nation’s most reviled companies, found himself onstage with Secretary of State Hillary Clinton. And Clinton had come to praise Goldman Sachs.

The State Department, Clinton announced that day in an auditorium in its Foggy Bottom headquarte­rs, would throw its weight behind a Goldman philanthro­pic initiative aimed at encouragin­g female entreprene­urs around the world— a program Goldman viewed as central to rehabilita­ting its reputation.

Clinton’s blessing underscore­d a long- running relationsh­ip between one of the country’s most powerful financial firms and one of its most famous political families.

Over 20- plus years, Goldman provided the Clintons with some of their most influentia­l advisers, millions of dollars in campaign contributi­ons and speaking fees, and financial support for the family foundation’s charitable programs. Drew closer

And in the wake of the worst crash since the Great Depression, as the firm fended off investigat­ions and criticism from Republican­s and Democrats alike, the Clintons drew Goldman only closer. Bill Clinton publicly defended the company and leased office space from Goldman for his foundation. Hillary Clinton, after leaving the State Department, earned $ 675,000 to deliver three speeches at Goldman events, where she reassured executives that they had an important role to play in the nation’s recovery.

The four years between the end of the financial crisis and the start of Hillary Clinton’s second White House bid revealed a family that viewed Wall Street’s elite as friends and collaborat­ors even as the public viewed them with suspicion and scorn.

Those relationsh­ips would becomea focal point for attacks on Clinton’s integrity and independen­ce by Sen. Bernie Sanders of Vermont, nearly derailing her path to the nomination.

And even now, under a barrage of populist taunts from Donald Trump, the Republican presidenti­al nominee, Clinton faces lingering doubts about the sincerity of her proposals to rein in Wall Street behavior.

In June, 60 percent of registered voters expressed concern that her links to Wall Street could prevent her from holding the financial industry accountabl­e, an NBC News/ Wall Street Journal poll found. ‘ Tough new rules’

Clinton rejects the idea that her loyalties are in doubt. Josh Schwerin, a spokesman, said in a statement Saturday that Clinton was “fighting for tough new rules and more accountabi­lity on Wall Street” and to build amore equitable economic system.

Goldman’s links to the Clintons date to the 1990s, when Robert Rubin, the company’s co- senior partner, left to join President Bill Clinton’s economic policy team.

The Clintons’ relationsh­ips with Wall Street deepened in the 2000s, when Bill Clinton set up his foundation in Harlem and Hillary Clinton was elected to the Senate from New York. That brought her in close touch with the big Wall Street firms, a source of jobs and tax revenue for New York— and a leading source of campaign funds for Clinton. During her years in Congress, employees of Goldman donated in excess of $ 234,000 to Clinton, more than those of any other company except Citigroup, according to the Center for Responsive Politics.

When Clinton left the State Department in 2013, she followed her husband into paid speechmaki­ng. If Hillary Clinton was concerned about the appearance of taking hefty fees from Wall Street while considerin­g a second presidenti­al bid, she did not show it: In her first year on the circuit, more than a third of her paid speeches were for financial companies.

Each of her three Goldman speeches were private, and Clinton has rebuffed requests to release transcript­s of them. Andat the time, she still embraced Goldman as a partner. In 2014, she appeared at the annual meeting of the Clinton Global Initiative, an offshoot of the Clinton Foundation known as CGI, to highlight the 10,000 Women program.

 ??  ?? Hillary Clinton rejects the idea that her loyalties are in doubt.
Hillary Clinton rejects the idea that her loyalties are in doubt.

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