[As you can see, nobody cares - yet.]
"Deer in Headlights"
Posted on 03/08/2008 5:16:51 PM PST by bjs1779
The legal fallout from the sub-prime crisis in the United States continued yesterday as Goldman Sachs conceded for the first time that it was the target of legal action and the FBI opened an investigation into 14 companies involved in America’s mortgage bond industry.
Morgan Stanley revealed yesterday that it, too, was the subject of new lawsuits, relating to the bank’s role in underwriting secondary share offerings for New Century Financial and Countrywide, the US mortgage lenders.
Goldman Sachs reported in its annual report, published yesterday, that it had received requests from regulators for information relating to high-risk sub-prime mortgages and related investment products that it had helped to package, such as collateralised debt obligations, which are pools of bonds and other asset-backed securities.
One case involving Goldman is being led by Andrew Cuomo, the New York attorney-general, who has issued subpoenas to the main Wall Street firms as he seeks to determine whether they knew more about the risks of sub-prime mortgage bonds than they let on.
Goldman Sachs to cut 1,500 from global jobs Mr Cuomo’s case received a boost over the weekend when Clayton Holdings, which conducted due diligence for the banks on many of the home loans that they packaged into bonds, agreed to provide evidence in exchange for immunity from prosecution. Goldman Sachs said that it was cooperating with the requests, which came from “various governmental agencies and self-regulatory organisations”.
Goldman Sachs is also among the 21 Wall Street firms being sued by the city of Cleveland, Ohio, which claims that they encouraged mortgage lenders to keep making loans to people who could not afford them by buying them and packaging them into bonds.
The FBI would not name the 14 companies it was investigating as part of a wide-ranging inquiry into the sub-prime mortgage crisis. However, it said that they include mortgage lenders, the investment banks that package home loans into bonds, and the Wall Street firms that ended up owning some of them, but not disclosing their dangers to shareholders.
PING!
I think they will not escape it though and their stock is down about 30% from its 52 week high so far - Which is less of a drop than other Investment Banks.
Cuomo had better be careful - or he's going to find out the hard way just who the government works for. ;)
how goldman makes money? by being goldman.
I think this pretty sums it up as to what they were doing. Remember, they shorted the CDO market behind the scenes.
“Goldman Sachs is also among the 21 Wall Street firms being sued by the city of Cleveland, Ohio, which claims that they encouraged mortgage lenders to keep making loans to people who could not afford them by buying them and packaging them into bonds.”
“Can anyone see how Goldman made their money when nobody else did?”
They cheated, and now they will pay the price.
Could be, but this needs to be cleaned up.
Of course not. Who would ever think of such a thing? I just find it strange that Goldman was the only bank that came out ahead in this fiasco. : )
"The FBI would not name the 14 companies it was investigating as part of a wide-ranging inquiry into the sub-prime mortgage crisis. However, it said that they include mortgage lenders, the investment banks that package home loans into bonds, and the Wall Street firms that ended up owning some of them, but not disclosing their dangers to shareholders."
>>Could be, but this needs to be cleaned up.
Apparently the entire industry needs to be cleaned up.
Good time to kill the Private "Federal" Reserve and restore control of monetary to our elected representatives; as per Article I, Section 8, Clause 5 of the Constitution.
Fortunately, Congressman Ron Paul has introduced legislation to restore financial stability to America's economy by abolishing the Federal Reserve.
Click here to contact your congressional representative and ask him/her to co-sponsor H.R. 2755.
As you can see, nobody cares - yet.
Don’t delete the emails.... switch hard drives....
This version of windows is registered to a different hardware configuration. Ending process in 10 seconds...
Man, I will love it should it come out that these Wall Street manipulators have been outside the law all this time. It might put a stink on all the money they contribute to both parties in return for getting their shenanigans hushed up.
I know, I know, ‘dream on’ sez you. And so I shall. What else have I got left?
The Federal Reserve is a private corporation that has usurped control over monetary policy and is abusing that power to enrich a bunch of non-producing Oligarchs.
You can help Congressman Paul pull the Fed's plug:
http://www.freerepublic.com/focus/f-news/1982683/posts?page=13#13
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.