U.S. Accuses Goldman Sachs of Fraud [update]

Originally posted by Vitchilo
OK, if you want to be honest, YOU BETTER CHARGE THEM WITH CONSPIRACY TO DESTROY TWO SOVEREIGN NATIONS... the US AND GREECE.

Also, CHARGE PAULSON, BERNANKE, BUSH, OBAMA, MCCAIN, CLINTON, ANYONE WHO RECEIVED MONEY FROM THOSE SCUMBAGS AND PASSED LAWS TO RELAX BANK REGULATIONS...

Those pieces of filth need to go to 40$ and below/share.

Otherwise it's a whitewash.

[edit on 16-4-2010 by Vitchilo]

You forgot Barney Frank. His hands are far from clean in this whole deal.

Originally posted by projectnsearch
NOTHING will come of this. At most they will slap their hand and give them a fine which is chump change. It's all a big game. Nobody will every go to jail and it will all be forgotten soon anyway. Watch and see.

I hope you're right, and nothing comes of this over all, but I'm not so sure.

This is smoke and mirrors. I think you're right in terms of consequences for Goldman Sachs. Much of the government and Goldman Sachs have been in collusion for some time. The repercussions however, are hard to predict and could be far reaching.

I don't usually just toss a gut feeling out there, but my gut says this is huge. I smell the onset of the second fleecing at least, but it may get worse than that. And boy, I hope I'm wrong.

PROBLEM - REACTION - SOLUTION


Is this all staged to make the public cry out for an end to capitalism & to cry out for nationalization of all banking institutions under control of the government (consolidate under FED RESERVE) ?

Seems like a good way to eliminate the remaining legitimate banks that did not participate in the ARM loan mortgage fraud.

Yup that would be a good crying call for the legions of socialists, who somehow believe we really have a *capitalist* market that's failed & now we need to *socialize* it all.

Reality is we don't have a "free market economy", it's rigged from top to bottom. Socializing the banks increases the amount of control over capital & eliminates their competition at the same time.



[edit on 16-4-2010 by zzombie]

zerohedge
twitter.com...
www.zerohedge.com...

New post: Talk From The Pits: Goldman Sold 1,000 Large S&Ps Earlier

reply to post by Maxmars


Blanket selling is institutions and large speculators selling off ETF's and Futures in large quantities no matter what industry.

So not only banks, but tech, consumer disc., you name it etc.

Hi Chaps
Someone on this thread said Quote "its gambling" meaning wall street Just want to say thats actually how it stands "Big Bets" gambling with hugh amounts of money. I always watch bloomberg and very often they use the term "betting" Just like Soros betting on the collasp of sterling .
Researching all the info around sounds to me like organised crime "its not what you know its who you know" I scratch your back you scratch my back" "Keep it in the family" type of thing if you know what I mean

reply to post by Hx3_1963


Their site is horrendous at keeping up with traffic.. keeps going down

The counter-argument to that though is they sell for their clients in the pits. So you can't nail them for that. I have heard that one before too... not saying they "didn't know" but you know what I mean.

[edit on 16-4-2010 by GreenBicMan]

Originally posted by zzombie
Is this all staged to make the public cry out for an end to capitalism & to cry out for nationalization of all banking institutions under control of the government (consolidate under FED RESERVE) ?

geez, I hope not
that would be like the sheeple inviting
the wolves to dinner

Criminals HAVE to go to prison here.
If you let the same criminals be part of
Gov then they can hide behind National
Security status.

Ironic, this very same strategy was discussed
in the Restore America Plan. hmmm

Was the RAP planned by the Fed Reserve
to eliminate prosecution of the world fraud??


[edit on 16-4-2010 by boondock-saint]

Originally posted by zzombie
PROBLEM - REACTION - SOLUTION

Is this all staged to make the public cry out for an end to capitalism & to cry out for nationalization of all banking institutions under control of the government (consolidate under FED RESERVE) ?

Seems like a good way to eliminate the remaining legitimate banks that did not participate in the ARM loan mortgage fraud.

Yup that would be a good crying call for the legions of socialists, who somehow believe we really have a *capitalist* market that's failed & now we need to *socialize* it all.

Reality is we don't have a "free market economy", it's rigged from top to bottom. Socializing the banks increases the amount of control over capital & eliminates their competition at the same time.

The problem is that the 'government' will not be controlling anything. The FED is just one a branch (tentacle) of a transnational (or as Rockefeller put it a "supranational") cartel of modern day robber barons and landed gentry.

The PR trick that makes most Americans consider the Fed to be a governmental organizations is constantly disproved when you consider their governance is the strict domain of international bankers.

True governmental control would be an elimination of the monetary monopoly, and the institution of a regulatory service.... but there is no profit in that.

I agree that these corporate cartels have maintained the illusion of free market publicly, while trivializing anything or anyone who illuminates the facts about it's private nature.

A nation's currency must never be controlled by a for profit middleman. Yet here we are. Who are the heavyweights in the financial industry - who makes policy - who decides how much money there is and what interest rate banks maintain between each other?... Banks - which is to say the Banks owners.

Do Americans own their 'national' bank? No. Did the Soviets? No. China? No. In fact, can you think of any country other than North Korea that has refused the international banking community a monopoly on their currency? I can't. And North Korea is a nightmare of malnourished shrinking people who freeze in the winter and starve in the fall. Any connection? I wonder.

reply to post by blood0fheroes


Government intervention in all sorts of areas has been and continues to be a disaster.

But when it comes to dealing with Goldman "vampire squid" Sachs and similar blood-sucking institutions, governemnt groups like the SEC and others are the last, best hope. You aren't going to get much done with a bunch of teapartiers waving signs on Wall Street.

The government has teeth, albeit rotting teeth. They've been abused obscenely recently but that doesn't mean everything the government does is of necessity a disasater. Sometimes a blind pig finds an acorn. I for one am quite happy to see the government taking on the financial giants who have become so bloated with hubris that they think they can get away with anything now. Any port in a storm. If government attack have even the slightest chance of weakening Goldman, than let the arrows fly.

I think this is a good start, and only the beginning.

Subpoena the records, start digging into the facts.

They go after recovering the money in the civil courts, and then start prosecuting the criminals later in the criminal courts.

Yes, it is political as well, because this is what the public wants, and it will put the democrats in a stronger position to make things happen.

reply to post by Maxmars


I'd love to see the Sachs boys crash and burn.. but I sense the Fed, the Treasury, and Obama's economic council are going to be going after the SEC ... They are, after all, ex Sachsmen themselves..

reply to post by silent thunder


You got it all wrong.

The fact of the matter is that government does many things well, and it is necessary. Trying to govern without a government is communism.

Allowing industry to run government is facism.

The people getting involved and making government work for the people is the answer, and it is a very successful formula.

The free market nonsense is just a new form of communism. It doesn't work.

Wake up.

While Goldman and many other banks do deserve to be severely punished, this today is nothing more than a PR event. Obama and his administration are pushing for heavy financial reform, and this is a CIVIL case. Read that people. CIVIL. Not criminal. This would produce a fine at worst. All this is, is a PR stunt to put up huge headlines that people read so people will back Obama's financial reform.

Until its criminal cases and more widespread, this is all a show.



[edit on 16-4-2010 by johnny2127]

reply to post by poet1b


Did you even read my post beyond the first line?

I am 100% in favor of any government takedown of Goldman and other similar firms...if it has any chance of working.

Ive just came across this here and thought it may be of interest to some. It may have been posted already but i havent read all replies yet, also i just seen it so sorry if im toe trampling
www.telegraph.co.uk...

reply to post by silent thunder


I'm sorry, I guess I came off a bit too strong.

All the government can't do anything propaganda gets to me.

You are right, the SEC is our current best hope.

However, in order for it to work, the Obama administration will have to put considerable effort into making the SEC do its job.

As the public, we need to get behind the politicians supporting these efforts.

reply to post by johnny2127


And this is bad thing....how?
If public opinion is for Wall street regulation ( and I think it already is), the overwhelming public support would be even better.

Duh. Of course they committed "fraud". Along with countless other crimes. Banking bastards...

A notable link worth visiting....

SEC Charges Goldman Sachs With Fraud in Structuring and Marketing of CDO Tied to Subprime Mortgages

Washington, D.C., April 16, 2010 — The Securities and Exchange Commission today charged Goldman, Sachs & Co. and one of its vice presidents for defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages as the U.S. housing market was beginning to falter.

The SEC alleges that Goldman Sachs structured and marketed a synthetic collateralized debt obligation (CDO) that hinged on the performance of subprime residential mortgage-backed securities (RMBS). Goldman Sachs failed to disclose to investors vital information about the CDO, in particular the role that a major hedge fund played in the portfolio selection process and the fact that the hedge fund had taken a short position against the CDO.

"The product was new and complex but the deception and conflicts are old and simple," said Robert Khuzami, Director of the Division of Enforcement. "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." ...

Litigation release

...... Undisclosed in the marketing materials and unbeknownst to investors, a large hedge fund, Paulson & Co. Inc. ("Paulson"), with economic interests directly adverse to investors in the ABACUS 2007-AC1 CDO played a significant role in the portfolio selection process. After participating in the selection of the reference portfolio, Paulson effectively shorted the RMBS portfolio it helped select by entering into credit default swaps ("CDS") with GS&Co to buy protection on specific layers of the ABACUS 2007-AC1 capital structure. Given its financial short interest, Paulson had an economic incentive to choose RMBS that it expected to experience credit events in the near future. GS&Co did not disclose Paulson's adverse economic interest or its role in the portfolio selection process in the term sheet, flip book, offering memorandum or other marketing materials......

PDF of the actual complaint

Oh how I love a good read before the weekend.....