Goldman Sachs: Profitting from CIT's Demise-and the Collapse of the US Job Market

Originally posted by kenji4861
This is well written up.

But what can anyone do? I think this is a situation where "if you can't beat them, join them" (or something like that) applies. Invest in GS?

GS working with the government and selling tools to profit on is known, but no one is/can do anything about it other than rant on the web/streets

lol I'm already following through with that and have been ever sense the economy drastically took a turn for the worst BUT with a twist.

My concern is if GS gets enough bad publicity and people actually do wake up to it one day then GS will be through being GS.

However they are already and chances are will always look at diving into certain area's.

Scenario:

For example GS no longer exists in the public's eye when in actuality they do exist just in a differently named cooperation.

In this scenario it would be in their best interest to drive as many stock prices so low that they can buy them for pennies on the dollar so to speak.

By doing this they have a very real possibility of being a majority stock holder in this corporation.

To do this they take a publicly traded stock and have it turned into a private stock while trying to drive out as many of the joe public investor's as possible by dropping the stock price and make it look like a suicide investment for the average public stock holder.

Then at it's low they may have to do the old reverse stock split to increase the stock value because there is actually a law that doesn't allow stock to be purchased at a low price to avoid stock manipulation. But no laws on stock splitting or reverse stock splitting.

That is when they gain a large amount of stock and any joe public still in it just gets lucky. After the reverse stock split and the shares are bought they then do a standard stock split and possibly a second stock split if it looks a little too high still.

For the average Joe knowing this and playing it is the biggest possible risk to take right now.

1. Average Joe may end up turning thousands into hundreds of thousands.
2. Or average Joe may lose a few thousand dollars because they were planning on driving them out of business not buying them at all. Hence the reason research is so important right now.

Goldman Sachs May Reap $1 Billion in CIT Bankruptcy (Update1)

Oct. 5 (Bloomberg) -- Goldman Sachs Group Inc. is set to earn about $1 billion should CIT Group Inc. enter bankruptcy or otherwise end a $3 billion financing agreement, according to a person familiar with the matter, who declined to be identified because the payout hasn’t been disclosed.

The payment would cover fees from a 20-year agreement signed June 6, 2008, according to regulatory filings. Under the deal, CIT agreed to pay Goldman 2.85 percent of the maximum amount lent under the facility, or $85.5 million annually for the first decade and then a declining amount after that, the filings show.

“This would not be a windfall payment,” Goldman Sachs said in a statement today. “The make-whole payment, which was publicly disclosed at the time of the financing, is simply the present value of the spread to be earned over the life of the facility.”

CIT Chief Executive Officer Jeffrey Peek is seeking to modify as much as $29 billion in debt, asking bondholders to swap unsecured obligations for new secured debt and preferred shares, in an effort to avoid bankruptcy. The company turned to bondholders in July for $3 billion in rescue financing after failing to win a second U.S. bailout.

Very well written!

I was just reading an article that in part discussed the 2009 Bilderberg meeting. I thought the following information was interesting:

www.globalresearch.ca...

Heavy representation at the Bilderberg meeting also came from members of the Obama administration who are tasked with resolving the economic crisis. Among them were Timothy Geithner, the US Treasury Secretary and former President of the Federal Reserve Bank of New York; Lawrence Summers, Director of the White House's National Economic Council, former Treasury Secretary in the Clinton administration, former President of Harvard University, and former Chief Economist of the World Bank; Paul Volcker, former Governor of the Federal Reserve System and Chair of Obama’s Economic Recovery Advisory Board; Robert Zoellick, former Chairman of Goldman Sachs and current President of the World Bank

So a former Chairman of Goldman Sachs is now current President of the World Bank. We are all had. It's all a stacked deck.

reply to post by sad_eyed_lady


The post above is the end result of how Goldman finally profited from CIT. Expect unemployment to sky rocket as a result of what is happening here.

great OP, as i first started reading it i was going to link you to the rolling stone article but alas, you already had it. GREAT post with good links!

i particularly like how goldman was bundling the mortgages together and selling them while simultainously shorting the crap they were selling.

oh and i reallylike goldmans arrangement concerning cap and trade.

wheres my pitchfork.....

And at the end of it all these people get better positions, more powerful positions after leaving Goldman Sachs. Robert Zoellick is now president of the World Bank. So many of these people are working that revolving door like it's going out of style. And we're left holding a bag full of IOUs.

reply to post by sad_eyed_lady


That article is a MUST READ. And I have to say, projectvxn, this is one of the most succinctly informative threads I've ever seen on ATS.

I just thought it would be worth highlighting a few salient points from said article:

On September 20, 2009, the Financial Times reported that the BIS, “the head of the body that oversees global banking regulation,” while at the G20 meeting, “issued a stern warning that the world cannot afford to slip into a ‘complacent’ assumption that the financial sector has rebounded for good,”

The Financial Times reported that William White, former Chief Economist at the BIS, also “argued that after two years of government support for the financial system, we now have a set of banks that are even bigger - and more dangerous - than ever before,” which also, “has been argued by Simon Johnson, former chief economist at the International Monetary Fund,” who “says that the finance industry has in effect captured the US government,” and pointedly stated: “recovery will fail unless we break the financial oligarchy that is blocking essential reform.”

BUT: anyone aware of the pivotal role played by Bilderberg meetings in deciding how things will pan out will perceive that the suggested essential reforms play right into the hands of the Bilderberg objective: a literal unified global financial system. As such it is a classic Problem-Reaction-Solution scenario:

In mid-September, the BIS said that, “Central banks must coordinate global supervision of derivatives clearinghouses and consider offering them access to emergency funds to limit systemic risk.” In other words, “Regulators are pushing for much of the $592 trillion market in over-the-counter derivatives trades to be moved to clearinghouses which act as the buyer to every seller and seller to every buyer, reducing the risk to the financial system from defaults.” The report released by the BIS asked if clearing houses “should have access to central bank credit facilities and, if so, when?”...

At this level, it could be argued, Goldman Sachs is just a cog in the wheel. EVERY economy needs to be on its knees in order for the Bilderberg objective to be achieved.

So the so-called 'crisis' may well be going very nicely, thank-you, from a certain perspective:

Bilderberg acts as an informal international think tank, and they do not release any information, so reports from the meetings are leaked and the sources cannot be verified. However, the information provided by Bilderberg trackers and journalists Daniel Estulin and Jim Tucker have proven surprisingly accurate in the past...

...Important to note, was that one major point on the agenda was to “continue to deceive millions of savers and investors who believe the hype about the supposed up-turn in the economy. They are about to be set up for massive losses and searing financial pain in the months ahead.”

Even some Bilderberg bigwigs emerge as pawns in the overall subterfuge:

Estulin further reported, “that some leading European bankers faced with the specter of their own financial mortality are extremely concerned, calling this high wire act ‘unsustainable,’ and saying that US budget and trade deficits could result in the demise of the dollar.” One Bilderberger said that, “the banks themselves don't know the answer to when (the bottom will be hit).”

Is there any doubt the Kingpin knows - whoever that may be?

If Goldman Sachs (and cronies,) and even the dollar itself are nothing more than toys in the hands of a burgeoning OWG, what on earth can be said of the lowly wage earners of this world? And if GS is profiting wildly from current and projected financial/economic turmoil (and the resultant suffering of millions of ordinary people) without censure, it is presumably an indication of the future tenor of the global system-to-come. A pilot project, if you like...

Housing starts fall sharply, inflation edges up

Looks like they're following the script, almost to the letter.

This from our friends at Zero Hedge:

Is Goldman Sachs About To Drag Down The Federal Reserve?

God I'm just loving this.

[edit on 18-11-2009 by projectvxn]

Looks like I was right. Goldman Sachs will get theirs, and I hope it helps bring about the end of government/corporate collusion.

This isn't a win for the left or the right, it's a win for all Americans.
And for those of you who have been saying this, No! Going after fraud is a Constitution Function of government, it is not socialism. I hope, however, that this will help bring about this tendency to drive down the road to some sort of defacto socialism.

It's time to put an end to the Statists, and part of that is to cut the source of their money and the private agents involved.

[edit on 17-4-2010 by projectvxn]