U.S. (SEC) Accuses Goldman Sachs of Fraud

The New York Times ^

[quesney]

Goldman Sachs, which emerged relatively unscathed from the financial crisis, was accused of securities fraud in a civil suit filed Friday by the Securities and Exchange Commission, which claims the bank created and sold a mortgage investment that was secretly devised to fail.

[swamprebel]

Some persppective:

The SEC a Gov’t agency, headed by Mary Shapiro, an Obama devotee, is accusing GS, a huge Obama donor, of fraud coincidentally at a time when Zero’s financial reform legislation is up before congress.....hummmm!

[cowtowney]

Hank Paulson and John Paulson are two different people

Hank was the Sec of Treasury
John is an independent investor who has purchased a lot of gold.

[Thane_Banquo]

The regulation bill would benefit Goldman greatly, allowing them to take unlimited risk and have the government permanently foot the bill for any large losses. They WANT the bill to pass, no matter what they say publicly.

[Major Matt Mason]

Didn't some of the Goldman folks just rake Reid over the coals for the Dems attacks on Wall Street firms? Looks like the Dems have responded. The Chicago (Obama) Way.

[Thane_Banquo]

I don't know much about John Paulson except that he runs a successful HF. Hank Paulson, on the other hand, is one of the most corrupt politicians in American history and should be tried for treason.

[TopQuark]

" Did Paulson and Soros have insider information that this was coming?"

This is simply insane. At the time, I too would buy financial stocks, especially top quality as Goldman Sacks, if I had the money. They were grossly undervalued.

[Thane_Banquo]

Don’t let their leaks fool you. Goldman would love it if the Senate bill passed: It gives them permanent “too-big-to-fail” status, allowing them to take on unlimited risk and make the taxpayer foot the bill for losses. It will also drive all their smaller competitors out of the industry.

[advance_copy]

Dow is down ~101

Bouncing off the 11k floor.

[NeoCaveman]

Thanks. What is Citi stock doing right now? If it’s rising, it will tell us alot. Soros and Paulson have taken large stakes in Citi recently.

Down. When Goldman gets a cold, the rest get influenza.

[TopQuark]

"Yet Magnetar Capital and Rahm Emanuel have been NOT ONCE mentioned in the LSM over the largest destruction of private household wealth in the history of the country."

How does packaging financial instruments destroy wealth? Could you kindly tell me the name of the professor who told you this nonsense in school?

Strange: you are familiar with Magnetar and yet make statements that would make you flunk a course in basic economics.

[TopQuark]

Thanks, friend. I am in front of the terminal too.

[WashingtonSource]

I think you’re right. This is a dog and pony show to distract from the health care fiasco and the rage at Washington.

[kcvl]

Goldman Sachs Group, Inc. (The)(NYSE: GS)
Real-Time: 158.24 -26.03 (14.13%)
11:34AM EDT

[kcvl]

[b4its2late]

I hear ya. Allot of ex GS employees work in the govt now. Here's a sample:

Robert Cogorno Government: Former Gephardt aide and one-time floor director for Steny Hoyer (D-MD.), the No. 2 House Democrat. Goldman: Works for [Steve] Elmendorf Strategies, which lobbies for Goldman.

Jon Corzine Government: Governor of New Jersey from 2006-2010; U.S. Senator from 2001-2006 where he served on the Banking and Budget Committees. Goldman: Former Goldman CEO. Worked at Goldman from 1975-1998.

William Dudley Government: President Federal Reserve Bank of New York City (2009-present) Goldman: Partner and Managing Director. Worked at Goldman from 1986-2007.

Dina Farrell Government: Deputy Director, National Economic Council, Obama Administration since January 2009. Goldman: Financial Analyst at Goldman Sachs from 1987-1989.

Michael Paese Government: Top Staffer to House Financial Services Committee Chairman Barney Frank. Goldman: Director of Government Affairs/Lobbyist (2009)

Mark Patterson Government: Treasury Department Chief of Staff since February 2009. Goldman: Lobbyist for Goldman Sachs from 2003-2008.

Henry "Hank" Paulson Government: Secretary of the Treasury from March 2006 to January 2009; White House Domestic Council, serving as Staff Assistant to the President from 1972 to 1973; Staff Assistant to the Assistant Secretary of Defense at the Pentagon from 1970 to 1972. Goldman: Former Goldman Sachs CEO. Worked at Goldman from 1974-2006.

Adam Storch Government: COO of the SEC's Enforcement Division (October 2009-present). He was 29 years old at the time of his appointment. Goldman: Former Vice President at Goldman Sachs where he worked from 2004-2009.

Goldman Sachs' Revolving Door - Surprisingly from CBS News Apr 7, 2010

[JerseyHighlander]

You haven’t read the nakedcapitalism article.

Magnetar defrauded customers on the tune of over $100Billion and took out insurance bets against the risks of the packages they designed, so they also defrauded their insurance companies. They wiped out their customers, took the management fees from customers, then took additional default insurance settlements which was their main purpose the entire conspiracy.

They purposefully designed the default of entire RRE CDO market through their activities. So instead of just the highest risk Joe^Pack losing access to capital, they entire country would have lost access to capital for home purchases if Uncle Sam had not stepped in to backstop. By purposefully inducing the highest level of mortgage defaults since the Great Depression, they almost monopolized the destruction of real household wealth as viewed by the value of the primary asset, the home, in the United States.

(And yes, the return to historical norms on Case-Shiller was inevitable, but) these guys went well beyond being the invisible hand and actively rigged and crashed a 4+ Trillion capital market by defrauding everyone on risk and redline defaults in purposefully obtuse contract language.

Read the article, understand that the Fed is now holding several Trillion in worthless debt specifically due to the fraudulent activities that took place in Magnetar’s Chicago offices, and that American taxpayers will be paying for this for decades to come.

[freethinker_for_freedom]

“REMINDER: GOLDMAN SACS WAS OBAMA’S LARGEST CONTRIBUTOR DURING THE 2008 CAMPAIGN!”

The mystery deepens. Why would O let Goldman be indicted? This guy is very sneaky and sometimes I can’t understand what he’s doing....

[caww]

Goldman SKS. ....”The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money”......

Excellant...reminds me of “War of the Worlds” with Tom Cruise. Those machines did likewise and left a trail of blood in their wake.........BO and this administration are the creatures within these giants...neither can operate without the other.

[Minus_The_Bear]

The Treasury Sec. is from Goldman... he is a tax cheat. Nothing is going to happen.

[b4its2late]

Everything is tanking on this now. Commodities included.