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

reply to post by GreenBicMan


That GS put action you posted from today is a real jaw dropper. I'm sure Goldman made a bundle since they would have already known this was in the works.

reply to post by Scalded Frog


Exactly. They will drag this kabuki out to November, blame the republicans for "derailing/ obstructing/ fill-in-the-blank" just to make people think something will be done or they're "trying" (that whole hopey-changey thing). IF the republicans happen to get elected back into a majority, we'll start the whole process over again. If they stay in power, it will be just as big a scam & a screw job as health insurance reform.

How many times does someone have to screw you over before you stop "giving them a chance" (to do it again)?

If that's cynical, fair enough. At least I came by it honestly.

remember when the goldman boys got gun permits last year to protect themselves from us? They should be shoving those guns in their mouths just about now....

[edit on 16-4-2010 by cmkxlives]

Originally posted by cmkxlives
doesn't uncle buffet have 5 Billion invested in this? Guess he's not such a great stock investor after all. No more top billionaire list for you! Who's next Jpig morgan or citi?

Yeah except he bought it $100 lower than it is now.

So...

reply to post by Scalded Frog


Well there is a poor side to that as well

Guess who was writing those puts?

Imagine writing those puts at $2000

Your $2000 you gained selling those puts in the beginning, now YOU OWE $100,000

Loss of $98,000 in 15 MINUTES!!!


This happens quite a bit, but for most examples you need to look at stuff like GOOG, BIDU, things like this.. of course implied volatility has a lot to do with it as well

You know the government could fix all these problems in a few months if they really wanted to do so. The problem is they don't because of their own selfish interests. I also see why people are so clingy with Obama too, it's because they are scared, they still think he is the hope and savior, it's just going to take "time" to "change", you know because he "inherited" such a pitiful economy, when he was a senator and was voting present while the everything was going on.

I hate to burst your bubble, but the only "change" we are going to get is the gas pedal pressed even harder to the floor.

I also agree with everybody else that says this is just a PR stunt, for "financial reform". I'm really ticked at the fact that, when the government tries to "fix" things they don't repeal anything they just add on top of what is already broken. We have been repeating this cycle for decades, and it only screws things up even worse.

SEC vs. Goldman Sachs, I don't even know what to say, reading some of these comments really makes me question if America is even going to make it.

I think it's just the release of a steam valve. MSM is already shifting blame to a 20 something banker inside GS.

The SEC said the fraud, a blow to the reputation of Wall Street's most powerful firm, was orchestrated in 2007 by a Goldman vice president then in his late 20's. The employee, Fabrice Tourre, has since been promoted to executive director of Goldman Sachs International in London.

Tourre, the SEC said, boasted to a friend that he was able to put such deals together as the mortgage market was unraveling in early 2007. In an email to the friend, he described himself as "the fabulous Fab standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstrosities!!!"

news.yahoo.com...

GS made BILLIONS on this fraud. They'll get a slap on the wrist fine and hope that it eases the anger towards bankers. Maybe they'll be able to get rid of their concealed carry. The number of ex GS execs in government positions convinces me that this is all sound and fury.

Sometimes I think that we need to review the difference between Capitalism and a Free Market Economy. Reagan touted a Free Market Economy and helped to enforce it by the break up of the Ma Bells into regional Company's.

We now live in a Capitalist System where everything has gotten too big to fail. Allowing large companies to fail would naturally spread the wealth around and promote a Free Market Economy.

Unfortunately the powers that be are trying to use what is happening to gain even more wealth and power.

When the fiat money collapses and we are forced to use a bartering system, the Free Market economy will naturally return, All those people that hoarded wealth for the sake of wealth will find themselves with lots of worthless paper and pretty yellow metal, yet they will still have to come back to us for food and water and survival.

The problem is that when all wealth is gone we will still remember what is was like to be rich and powerful.

I still can't find the words to describe or wrap my head around what that John Paulson character's role was in Goldman.

Made the subprime market rules he knew would fail and then bet the pentions and money of other investors while making money betting that the loans would fail.

And made a profit of 3.7 BILLION DOLLAR$ in one year! ONE MAN! 3.7 Billion Dollars!

Room spinning....
assuming fetal position......

MOMMY ??

One of these days im going to report Goldmann Sachs to the local police for fraud, whos going to do the same?
Could also report them to Interpol, enough is really enough

First you say that:

Originally posted by Light of Night
You know the government could fix all these problems in a few months if they really wanted to do so.

And later:

I'm really ticked at the fact that, when the government tries to "fix" things they don't repeal anything they just add on top of what is already broken.

So, i don't get it. Are you saying that government is intentionally trying to make the things worst??

Then you say:

I hate to burst your bubble, but the only "change" we are going to get is the gas pedal pressed even harder to the floor.

And then:

SEC vs. Goldman Sachs,

I don't even know what to say

So, can we say you did get surprised and still think there have been nothing new?? how is that??

Personally, when I read "Goldman Sachs charged with fraud" I though: wuau, the impossible is just happening. I mean, if the bad guys at wall street are enforced to comply the law, is a good thing for the economy... isn't it?

reply to post by oshdra

So, i don't get it. Are you saying that government is intentionally trying to make the things worst??

Yes, that is exactly what I am saying.

So, can we say you did get surprised and still think there have been nothing new?? how is that??

Personally, when I read "Goldman Sachs charged with fraud" I though: wuau, the impossible is just happening. I mean, if the bad guys at wall street are enforced to comply the law, is a good thing for the economy... isn't it?

Yea, it surprised me until I read it was a civil case. Then the nostalgia wore off really quickly. Civil case isn't anything. Then an article pops up on how they are going to try to bring the financial reform bill to the floor next week. Coincidence? Nope I don't think so.

This move is nothing more than politics. Just like when ever they propose to "fix" something. Just like a flat tire, you remove the old tire before putting on the new tire. You don't keep the old tire on and put another tire on top of it.

Congrats though, your reaction is exactly what they wanted from us.

Note that it is foreign banks that were the losers here, perhaps that is why charges are even being filed.
I was under the impression that both the Federal Reserve and the SEC were being secretly run by the IMF.
Somehow I doubt the case will actually produce any convictions, it seems that here in the US the bigger the crime the more help they get from the government. Them crooks gotta stick together ya know!

reply to post by time91



Here's an article relating to how currency swaps sold to the Greek Govt. by Goldman Sachs were used to hide the inevitable.

Goldman Sachs helped the Greek government to mask the true extent of its deficit with the help of a derivatives deal that legally circumvented the EU Maastricht deficit rules. At some point the so-called cross currency swaps will mature, and swell the country's already bloated deficit.

THIS is what I was referring to, as far as exchange rates.

Greece's debt managers agreed to a huge deal with the savvy bankers of US investment bank Goldman Sachs at the start of 2002. The deal involved so-called cross-currency swaps in which government debt issued in dollars and yen was swapped for euro debt for a certain period -- to be exchanged back into the original currencies at a later date.

The exchange back to the currency at a Goldman Sachs projected rate is where Goldman made out like bandits and the Greeks lost.


www.spiegel.de...

Originally posted by Light of Night
Yea, it surprised me until I read it was a civil case. Then the nostalgia wore off really quickly. Civil case isn't anything.

I agree. And I can even predict it's findings. They'll not pursue any further charges, and they will demand a settlement from Goldman. A few billion.

And an admission that there might have been some semi fraudulent activity but we're all friends and Goldman Sachs is still a reputable institution.

Just wanted to point out one thing.


This was released on a Friday, and I do not think by coincidence, as we saw the immediate effect this had on the market.

Following with the typical Friday news bombs of this administration, just as it has been every Friday since he took office.

By Monday, there is time for people to go back to their corners and lick their wounds, and by Monday the wounds have healed enough to stop and further serious effects to the market.

It was a blip.

We forget easily. Sometimes, too easily.

Expect more blips, but only after more false recovery.

I expect more blips, and one will be the straw that breaks the camels back. I can not warn people enough, stay clear of gold. Go silver if you can, if you need something to make you feel safe for trading "in case" the worst happens.

Who wants to drop gold on a loaf of bread? Think.

You saw the effect on gold. You saw the effect on oil. Gold will not stay at highs like this, it never does. Buy low, sell high, not the other way around.


[edit on 17-4-2010 by Libertygal]

Honestly, I think this is for real, and this civil suit is just the beginning.

If you support the idea of going after these Wall Street crooks, then write the Obama admin, and your congressional representatives. You can go to this link below, and voice your support right away.

my.barackobama.com...

Either that, or you can continue to sulk, and cry about how nothing can be done. IT is your choice.

reply to post by Libertygal


nah, if you want to trade to survive the belly up, you're better off to buy huge loads of toilet paper, whiskey, tobacco, flour, coffee or tea, and aspirin, stick 'em in a safe place and then you'll have something to trade with.

can't eat silver. and can't wipe your behind with it either.

Goldman Sachs will meet Blackman Sacks in prison! BHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!!

[edit on 17-4-2010 by cmkxlives]

www.marketwatch.com...

Goldman Sachs Group Inc. was warned nine months ago that Securities and Exchange Commission staff wanted to bring a civil case against it, but the investment bank didn't specifically disclose this to investors in regulatory filings

isnt that cute.... nothing is going to come of this lawsuit like ive said. its all a show for the common moron