Posted on 07/30/2009 8:51:52 AM PDT by Oldeconomybuyer
A Senate panel has subpoenaed financial institutions, including Goldman Sachs Group Inc. and Deutsche Bank AG, seeking evidence of fraud in last year's mortgage-market meltdown, according to people familiar with the situation.
The congressional investigation appears to focus on whether internal communications, such as email, show bankers had private doubts about whether mortgage-related securities they were putting together were as financially sound as their public pronouncements suggested. Collapsing values for many of those securities played a big role in precipitating last year's financial crisis.
The subpoenas are the latest in a series of moves by Congress to trace the roots of the financial crisis. Goldman has been a favorite target for criticism in Washington.
A House panel voted this week to allow regulators to bar banks from offering executive-pay plans that encourage too much risk. The move came after Goldman Sachs reported record profits for the second quarter and said it has set aside $11.4 billion during the first half of the year to compensate employees.
(Excerpt) Read more at finance.yahoo.com ...
scum.pigs.human detritis.in another day they’d have been hanged.
oh a Senate probe! At last we will find the truth! /s/
The corrupt investigates the corrupt. Washington and their Wall Street liberal elist, pay to play campaign contributors will work it all out just fine.
I have wondered for some time why they have not investigated the practice of firms selling packaged securities then turning around and shorting these same instruments.
True, next thing you see will be them hiring Mccain's campaign manager to investigate fanny may.
I won’t comment on the Senators (plenty of threads for that), but this could get really fun. I would LOVE to see these financial institutions get NAILED and some of their execs do some hard time. I have no inside info, but I cannot believe that these institutions did not know how toxic these loans were...especially by 2007, yet they kept pushing them right along.
The E-Mails may be VERY INTERESTING.
If anything illegal was done, I agree. But you are on a slippery slope. The entire industry knew the housing bubble was unsustaiable including builders, contractors, realtors, agents, title companies, etc.
It’s governments job to set and police the law. They failed and should be held to account starting with Dodds and Fwank.
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