Goldman's Venezuelan bond deal a 'cynically opportunist bet:' Fmr. Goldman managing director

"Goldman Sachs has made an immoral agreement that makes them complicit in the violation of human rights in Venezuela", President of the Opposition-controlled Venezuelan National Assembly, Julio Borges, said Tuesday on his Twitter account. "They merely broked [sic] the bonds to Goldman, making Goldman's statement that they "bought the bonds in the secondary market and did not buy them directly from Venezuela" bull**** technical spin". Mr Borges, who is president of the country's opposition-run Congress, said Goldman had paid 31 cents on the dollar. It is unclear whom Venezuela sold the bonds to or how many investors held them before reaching Goldman.

Members of the opposition party have threatened not to honor the bonds or do business with Goldman Sachs if they do come into power.

Why they are buyers is simple: the bonds are cheap, they are able to buy them, profits are likely and they seem to have concluded that the reward outweighs the risk that at least some bonds will meet with default given the economic and political upheaval predicted for the troubled Latin American country.

About 30 protesters gathered Tuesday in front of the company's NY headquarters on West Street in lower Manhattan chanting “No more hunger bonds, Goldman Sachs” and “Goldman Sachs, shame on you.”.

Opponents of embattled President Nicolas Maduro say the move has given his government a financial lifeline.

Goldman Sachs' did not respond to Fox News' request for comment about the bond deal.

Venezuela's crisis is man-made; a socialist regime introduced bad economic policies and took away human rights.

The Venezuelan government hasn't made an global public bond offering in several years since capital markets are essentially closed to it as its economy has shrunk 27% in four years, its oil production has declined rapidly and investors have become increasingly anxious about the growing likelihood of default.

He challenged the parliament to help "find a peaceful solution to this crisis" and said he would ask its leaders to consider imposing sanctions against select Venezuelan officials, as the United States has done.

Goldman Sachs has shamelessly chose to extend a lifeline to Venezuelan strongman Nicolas Maduro's dictatorial regime, in a move that has revealed the Wall Street firm's willingness to set principles aside for profit.

Venezuela's food shortage has been so bad, the average citizen has lost 19 pounds in the past year. "We agree that life there has to get better, and we made the investment in part because we believe it will", the investment bank added.

With the once oil-rich economy in crisis - inflation is in the triple digits and many are unable to pay for, or even find, scarce basic goods - as a result of lower oil prices, Maduro's government increasingly relies on such deals to bring in much-needed foreign currency.

  • Leroy Wright