Posted on 04/17/2010 7:06:25 AM PDT by george76
The SEC has filed civil charges against Goldman Sachs and its banker Fabrice Tourre for its role in structuring subprime mortgages, which it structured at the behest of hedge funders like John Paulson.
Goldman shares are off 10%.
At issue is the lack of disclosure of Paulson's role in selecting the assets that went into the CDOs.
There is also an allegation that John Paulson was presented as having gone long the CDO, when in fact he was short.
(Excerpt) Read more at businessinsider.com ...
I think GS used to be very good at making money by following the rules. When it become too difficult to make as much money following the rules they decided it was no longer necessary to follow the rules. I happen to believe that greed is good as long as it is held in check by ethical behavior.
Of course. This is all about Obama trying to show the left-wing base that he is not in the pocket of the banks.
Not true of course but this is just a short-term scheme cooked up by the WH and likely GS itself to try to light a fire under left-wing activists in advance of Nov.
The Banks must not be giving the Obamaites enough of the Vig, and this civil action is a way to extort more out of them. If Goldman is “guilty as charged”, then those responsible and who knowingly profited should be thrown into a ditch and shot (after a fair trial of course, like with KSM).
I see it as more of a political move...a way to excite the left-wing for the election...those who have soured on Zero because he supported TARP and hasn't gone after the banks enough.
The number of threads about this on DU indicates that they are rising to the bait.
And the Stoopid Party will be there hapless as ever cheerleading for “the street.”
The list, ping
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