Posted on 04/16/2010 8:49:07 AM PDT by Sleeping Freeper
SAN FRANCISCO (MarketWatch) -- The Securities and Exchange Commission on Friday charged Goldman Sachs & Co. and one of its vice presidents for defrauding investors by misstating and omitting key facts about a financial product related to subprime mortgages.
The SEC alleged in a lawsuit that Goldman structured and marketed a collateralized debt obligation that hinged on the performance of subprime residential mortgage-backed securities. However, it failed to disclose the role that a major hedge fund, Paulson & Co., played in the portfolio selection process as well as the fact that the hedge fund had taken a short position against the CDO.
"Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party," said Robert Khuzami, director of the division of enforcement, in a statement.
(Excerpt) Read more at marketwatch.com ...
When the change the term civil to criminal and include a host of names behind it, then it will be good news.
Bookmark!
I have a very strong feeling that you don’t like Goldman Sachs at all....
I have a very strong feeling that you don’t like Goldman Sachs at all....I hope its not because they are too successful and pay their employees outrageous bonuses.
These bloodsuckers knowingly sold toxic mortgage investments to their customers, and then bet against the investments. And then they blackmailed the Treasury saying, “If we go down, we’re taking all of you with us. Guarantee any losses with US taxpayer money or we will destroy the economy as well as rob you.”
Yeah these guys are major crooks. A civil suit is the LEAST that should happen to them.
http://www.balloon-juice.com/2010/04/15/the-gops-real-plan-wall-street-bailouts-forever-in-exchange-for-campaign-cash/
No, I think it is because in this case, GS&Co facilitated a robbery of 1 billion dollars committed by a hedge fund and stolen from otherwise honest investors.
Goldman Sachs execs that played a role in this or had knowledge of it and looked the other way should be strung up alongside the Paulson hedge fund big wigs as an example.
Capitalism doesn’t work too well when we look the other way at corruption and back alley deals. History is littered with examples of this kind of stuff, if left to its own devices, leading to nasty revolutions and the loss of capitalism or semi market-based economic models.
Paulson Paulson Paulson where have I heard that name before. I know a Paulson that came from Goldman Sachs. What was his first name? He went into government. Give me a minute.
Taking the market with them on this one.
How will Holder protect the Democrats at Fannie and Freddie? How will Cuomo protect the crooked Democrats in New York?
I think this was also what they were doing with Greece.
I don’t have a vendetta against them or any other firm. What I do have is a vendetta against those who play loose with the truth. I know when you play with someone elses dice you might consider the game rigged. I accept that but what I like to see happen is when someone running a rigged game has happen to them akin to what happened once in an alley dice game in Newark: After making 15 straight passes one time, the guy who lost his shirt said to the shooter, hey man, let me see those dice. When he produced them, he cut off his hand with a straight razor. That is what I want the government to do with these clowns, figuratively speaking of course. They belong in JAIL.
Don’t be fooled. This is all a ‘Dog and Pony’ show.
“Good news!..... for a most deserving criminal enterprise....”
Yeh, and according to what I have read, not the first time they have caused wide spread finacial turmoil.
Recently the Florida Bankers Association pressured (bribed) the FL Legislature into ramming through HB1523 and SB2270. These bills would remove Florida’s status as a Judicial State.
There seems to be two camps on this topic:
Camp 1 blames the homeowner.
Camp 2 blames the bankers and Wall Street.
I’m in Camp 2 because I have seen the fraud and know these “lenders” have often put up ZERO dollars to fund the loans. Then the lenders proceed to collect obscene profit through bogus insurance policies and various instruments like AIG’s Credit Default swaps.
If you are in Camp 2 like me, a rally will be held in Tallahassee Wednesday April 21. Bus rides are available.
Please see link below....
http://www.foreclosurehamlet.org/profiles/blogs/freedom-ride-circa-2010-a
The $hit is about to hit the fan!
Speaking of Dogs and Ponys..Kramer was just on CNBC with a pained look on his face. Last night he was crowing about the new Bull Market and how everyone should BUY NOW. This morning it is down over a hundred..TOO FUNNY!
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