Measuring Goldman Taint; More on Arnold Flip Flop


Alert readers might have noted that Calbuzz has, in recent weeks, paid a lot of attention to billionaire Meg Whitman’s links to Goldman Sachs.  They may also have gleaned that we kinda, sorta think that the stock spinning made possible by Goldman when eMeg was CEO of eBay, was, well, pretty darn unethical.

So when Steve Poizner pounced on eMeg’s Goldman taint, we gave The Commish a pretty good ride. But let’s be honest: Poizner’s not some poor schmo with a tin cup begging for nickels so he can run for governor. A zillionaire himself, he is certainly no Goldman Virgin.

In fact, back in 2004 when he was running for the Assembly, (as a Republican, btw when eMeg wasn’t even a registered voter, let alone a Republican – but we digress)* Poizner got himself a $500,000 loan on VERY favorable, preferential, best-customer terms (the federal funds rate + 60 basis points ) from Goldman Sachs. He repaid the loan about six months later, but he got use of the money at practically no cost – terms he was afforded because the loan was backed by his personal assets in a Goldman brokerage account (as noted in his 12/03 FPPC Form 700).

The whole loan and other complex Poizner/Goldman details are spelled out over at Whitman’s favorite conservative blog (at least she pays them huge amounts for her ads over there) Red County. The loan has also been noted here, here, here and here. Point being, the Whitman folks have shopped this one around, trying to suggest, “Hey, Poizner’s got just as much of a problem with Goldman Sachs as Meg does.”

But an exclusive Calbuzz analysis of the Goldman Sachs Taint of Scandal accruing to each of the candidates for governor – let’s not forget Attorney General Jerry Brown’s sister works there and the city where he was mayor had a credit deal with Goldman – demonstrates that the GSTS Factor for Whitman is 80%, compared to 15% for Poizner and 5% for Brown. (See chart above)

Bottom line: This is how smart, New Media Age guys and news gatherers avoid falling prey to the dreaded False Equivalence Syndrome – by scientifically analyzing the metrics and measurables of any given scandal – taking into account, of course, a margin or error of plus or minus 2.5 percentage points.

Terminator terminates T-Ridge: Gov. Schwarzmuscle’s stunning, 180-degree flip flop on offshore drilling near Santa Barbara astonished us for many reasons – not least of which was the utter lack of political grace he displayed towards his erstwhile environmental allies, whom he totally hung out to dry.

“Arnold loves to do that – it’s part of his control issues,” said former Assembly member and T-Ridge environmental  booster Hannah Beth Jackson. “Consistency and rationality have never bothered him in the least.”

In delivering a sudden and unexpected coup de grace to the fiercely debated Tranquillon Ridge project on Monday, Arnold totally blindsided the embattled coalition of Santa Barbara environmental activists who had put reputations, credibility and personal friendships on the line in fighting for the plan for the last two years.

Having appropriated for his own purposes a complex legal agreement over leasing arrangements that Santa Barbara’s Environmental Defense Center had reached with the Houston-based PXP oil company, Schwarzenegger couldn’t be bothered giving the enviros a heads-up before airily dismissing the painstakingly negotiated deal as if he were dispatching a fly, during the course of a press conference he’d called on an entirely different issue.

“We had absolutely no idea this was coming,” said Linda Krop, general counsel for the EDC, who spent nearly three years working on the PXP agreement, and who’d been enlisted by Schwarzenegger’s Department of Finance in his own, budget driven efforts to gain approval for it. “We were completely surprised.”

Krop only learned that Schwarzenegger had switched his position more than an hour after his press conference, when reporters started to call. The architect of the EDC-PXP deal,  she has long argued that giving the company  a short-term lease to drill into state waters, from a platform it already operates in federal waters, is a worthwhile trade off for its promise to end permanently most of its federally leased drilling in the region.

Whatever you think, as a policy matter, of the agreement she crafted – and environmentalist opinion was bitterly polarized on the issue – Krop is a smart, determined and passionate coastal protection advocate who’s paid her dues and deserves better than being dissed by a muscle-bound, metrosexual movie actor without a principled bone in his sagging body.

Whaddya mean you work for me? Of course, enviros don’t seem to be the only ones who failed to see Schwarzenegger’s switcheroo coming.

Last Saturday, Chronicler Marisa Lagos did a good piece probing whether the Deepwater Horizon catastrophe had triggered any rethinking within the Administration about its full-square support of the T-Ridge project. No effin’ way, one of Conan’s army of mouthpieces insisted to her:

As oil spewed Friday from a blown out well in the Gulf of Mexico and spread into Louisiana’s sensitive wetlands and rich fishing grounds, Gov. Arnold Schwarzenegger’s administration defended a plan to allow new drilling off California’s Central Coast.

A spokesman for Schwarzenegger said the proposed Tranquillon Ridge project off Santa Barbara County is attractive because the oil company behind the project has agreed to end drilling off the coast in exchange for a permit to do so for the next 14 years…

“This doesn’t really change anything, because we’re looking at a platform that’s already in operation,” said Jeff Macedo, the governor’s spokesman. “If anything this makes the T-Ridge project that much more important, because it would put a sunset date on when it shuts down.”

Oh, never mind.

Two days later, Schwarzenegger stood before reporters and sounded exactly the opposite opinion.

Without the simple courtesy of telling someone to pick up the phone and let the pro-T-Ridge environmentalists know what he was about to do, Arnold instantly and categorically rejected the entire environmental argument in favor of the project.

He not only turned his back on his previously stated certainty that the PXP deal, by aiming to close out currently open-ended federal offshore leases, would actually make an oil spill near Santa Barbara less likely; he also shrugged off the importance of the $100 million the project would have brought to the state annually – after more than a year of thundering about the crucial importance of that money to California’s fiscal condition.

Not surprisingly, he said he changed his mind after watching TV.

* correction

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There are 2 comments for this post

  1. avatar parkboy says:

    Is there any truth to the rumor than even Susan Kennedy didn’t know of the T-ridge decision until the Gov announced it?

  2. avatar Andy says:

    If I had a nickel for everyone who thought they had a deal with him I’d be able to sellf-finance a run for the job.

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