This should put a smile on Fluffy's face...

[Glaucus]

SEC charges Goldman Sachs with fraud

The U.S. government is accusing Wall Street powerhouse Goldman Sachs Group Inc. (GS-N160.86-23.41-12.70%) of defrauding investors in its disclosures about securities it sold tied to subprime mortgage securities as the housing market was faltering.

The Securities and Exchange Commission announced Friday civil fraud charges against the Wall Street powerhouse and one of its vice presidents. The agency alleges Goldman failed to disclose that one of its clients helped create — and then bet against — subprime mortgage securities that Goldman sold to investors.

Investors in the mortgage securities are alleged to have lost more than $1-billion (U.S.), the SEC noted.

The Goldman client implicated in the fraud is one of the world's largest hedge funds, Paulson & Co., which paid Goldman roughly $15-million for structuring the deals in 2007.

 

[redrumloa]

Mine too!!!!!!!!

So why isn't Paulson indicted? Hmmm...

 

[FluffyMcDeath]

@Glaucus


Ow. I have a cramp in my grin muscles.

I particularly like the stock chart!
They're so big they seem to have pushed down indexes all over the place.

Hope the government has a plan in place after they stab this beast in the heart. It needs to be received and cut up into about 100 pieces and sold back out to new players. These finance clowns in charge couldn't get humble after what they did and if they can't learn a lesson on their own it needs to get taught to them with steel toed boots.

 

[Glaucus]

I particularly like the stock chart!

Here you go:

:mrgreen:

 

[redrumloa]

Hope the government has a plan in place after they stab this beast in the heart. It needs to be received and cut up into about 100 pieces and sold back out to new players. These finance clowns in charge couldn't get humble after what they did and if they can't learn a lesson on their own it needs to get taught to them with steel toed boots.

I wonder how far this will go, considering half our gov have some sort of relationship with GS. Either heads will start rolling in gov, including in the administration, or GS will be slapped with a few million $ fine and go on business as usual?

 

[FluffyMcDeath]

's funny how it seems to have slammed metals as well. Wonder if that was a coordinated sell-off to protect the USD, or investors just getting skittish about paper gold - or it could be gold holders needing to cover other positions all of a sudden.

Wonder if we will hear about big short positions in Goldman Sachs. Quite a few people in the SEC must have known this was coming soon. It would be a good test of their discipline to see if anything leaked.

 

[Wayne]

There's something about a man discussing "putting a smile on Fluffy's face" that I find vaguely disturbing..

Wayne

 

[Glaucus]

Well, I guess now Speel has a reason to enter the thread... :mrgreen:

 

[metalman]

Goldman Sachs is one of the top Democratic Contributors

2008 Election Campaign Contributions:
total =$5,934,089 D=$4,463,788 R=$1,459,961 75% Democratic

The Only Contributors who gave more to the Donkeys than Goldman, were the Unions


Obama is pushing for financial regulatory reforms because thats the only popular issue that Dems have a trust edge leading up to congressional elections in November, so the Dems have to sacrifice Goldman Sachs, to have a chance in November. Bankers are universally disliked, so Goldmans now has to take a dive for the Donkeys.

:roflmao:

 

[metalman]

In related News:

Warren Buffett lost $950 million in Goldman Sachs (GSI) options today as the bank's stock tanked as a result of the SEC filing fraud charges against the firm.

Democratic Contributor Warren Buffett

Case against Goldman Sachs appears to be very weak

Seems the charges were more likely timed to the arouse the public ahead of a financial reform vote in Congress.

Looks like it's a Democratic witch hunt to ginn up some Democratic enthusiasm before the November election.

So when are Congressman Henry Waxman's "show trials" scheduled? For the companies that dared to follow legal requirements and take millions in losses, do to the passage of ObamaCare.

 

[redrumloa]

In related News:
Seems the charges were more likely timed to the arouse the public ahead of a financial reform vote in Congress.

Looks like it's a Democratic witch hunt to ginn up some Democratic enthusiasm before the November election.

While I question the motives and the timing, I don't see how the case could be weak. Goldman$achs is as dirty as they come.

 

[FluffyMcDeath]

@metalman

Banker lover.

 

[metalman]

In related News:
Seems the charges were more likely timed to the arouse the public ahead of a financial reform vote in Congress.

Looks like it's a Democratic witch hunt to ginn up some Democratic enthusiasm before the November election.

While I question the motives and the timing, I don't see how the case could be weak. Goldman$achs is as dirty as they come.

Its going to be a well orchestrated Kabuki theater by the Obama administration. A symbolic political act to "Main Street" to show he's being "tough" on "Wall Street". Goldman Sachs’s role is to be the lightning rod for political outrage. The play ends on election day in November.

At most, Goldman Sachs will get light slap on the wrist with a token fine. If it goes to trial, the odds are it will be dismissed in a summary judgement. Failure to disclose cases are very hard to prove, and Goldmans lawyers are paid a lot to keep them from crossing the line of illegalities. The securities were sold in a private placement, only available to "sophisticated investors", not to the general public.

The question at this point is, who in his right mind would want to be a Goldman Sachs client? Since this case shows, Goldman will play their "sophisticated clients" for suckers too. The good thing is no one on "Main Street" has enough money to be a Goldman client.

 

[FluffyMcDeath]

Funny how the Dems are trying to kill all their biggest backers. Don't they remember how political payoffs are supposed to work? Is it time for the Republicans to show them again?

Case against Goldman Sachs appears to be very weak

Interesting and Blodget should know a thing or two about fraud. He was a Merrill Lynch man and he paid $4million and was barred from the securities industry for his part in a fraud. He may just be trying to shore up some Goldman stock he has

However, if the suit goes even a bit well it could open the flood gates

---edit---

Lehman may have grounds to sue Goldman.

 

[metalman]

Funny how the Dems are trying to kill all their biggest backers. Don't they remember how political payoffs are supposed to work?

:roflmao:
Maybe they should hire Andy Stern (SEIU) as a consultant, and wear a purple bracelet.

Case against Goldman Sachs appears to be very weak

Interesting and Blodget should know a thing or two about fraud. He was a Merrill Lynch man and he paid $4million and was barred from the securities industry for his part in a fraud.

Of the hundreds of civil lawsuits that were filed against Blodget, the vast majority of these lawsuits were dismissed by summary judgement. The remaining few that went to trial resulted in no judgements against Blodget.

In June of 2009, the SEC announced that the $4 million Blodget had payed to compensate those he had allegedly defrauded, would be turned over to the Treasury instead, since there were no civil judgements against Blodget.

 

[Glaucus]

Well this is way bigger then just the Democrats now...

Britain's PM seeks Goldman probe

Germany and Britain will seek details from the U.S. Securities and Exchange Commission about the activities of Goldman Sachs Group Inc. (GS-N160.70-23.57-12.79%) as a prelude to potential legal steps following a U.S.-led fraud investigation.

Prime Minister Gordon Brown said Sunday he wanted Britain's financial watchdog to investigate the Wall Street giant after U.S. regulators filed civil charges against it.

 

[metalman]

Well this is way bigger then just the Democrats now...

Britain's PM seeks Goldman probe

Germany and Britain will seek details from the U.S. Securities and Exchange Commission about the activities of Goldman Sachs Group Inc. (GS-N160.70-23.57-12.79%) as a prelude to potential legal steps following a U.S.-led fraud investigation.

Prime Minister Gordon Brown said Sunday he wanted Britain's financial watchdog to investigate the Wall Street giant after U.S. regulators filed civil charges against it.

"Mr. Brown's Labour Party lags in the polls before the May 6 election and a tough stance against bankers is popular with voters angry about high bonuses paid by banks, particularly those that received state bailouts during the financial crisis."

This Kabuki theater will be playing in more than one venue now its so popular!

:roflmao:

Goldman Sachs!

 

[redrumloa]

Well this is way bigger then just the Democrats now...

Britain's PM seeks Goldman probe

Germany and Britain will seek details from the U.S. Securities and Exchange Commission about the activities of Goldman Sachs Group Inc. (GS-N160.70-23.57-12.79%) as a prelude to potential legal steps following a U.S.-led fraud investigation.

Prime Minister Gordon Brown said Sunday he wanted Britain's financial watchdog to investigate the Wall Street giant after U.S. regulators filed civil charges against it.

They need to be going after another (more obvious?) target in Goldman Sachs. They need to go after their "proprietary trading software" and "high frequency trading techniques". "Pump & dump" is illegal, "wash trades" are illegal, "insider trading" is illegal, "bear raids" are illegal etc. Why is it illegal for everyone except a handful of extremely well connected banks? All of which are done under the guise of "proprietary trading software" and "high frequency trading techniques".

I will say again I am very surprised, but pleased, to see any action taken. I'd usually tend to agree with Metalman on the point that this being used for political leverage by the dems, with a minor wrist slap later, but putting the spotlight on such an obvious target such as GS opens the door for other countries to take real action. If GS is really a sacrificial lamb for the democratic party, it is a biggy!!!

 

[metalman]

I will say again I am very surprised, but pleased, to see any action taken. I'd usually tend to agree with Metalman on the point that this being used for political leverage by the dems, with a minor wrist slap later, but putting the spotlight on such an obvious target such as GS opens the door for other countries to take real action. If GS is really a sacrificial lamb for the democratic party, it is a biggy!!!

The GS Time Line

"the Democratic National Committee had Google Word Ads for “Goldman Sachs SEC” working by 4 pm on Friday"

I think the donkeys forgot to include "other countries" in their political calculations, GS could die a death of a Million paper cuts as others pile on.

Finance Reform is the only issue Dems poll favorable, so sacrificing GS, to get re-elected in November is the trade off for them.

 

[FluffyMcDeath]

They need to be going after another (more obvious?) target in Goldman Sachs. They need to go after their "proprietary trading software" and "high frequency trading techniques". "Pump & dump" is illegal, "wash trades" are illegal, "insider trading" is illegal, "bear raids" are illegal etc.

Obama seems to be playing two sides. He tried to tell the bankers what to do - which had some public support. The bankers told him to take a hike - which lost him face. On the legislative side he seems to have people talking with the banks to soften any new regulations which may have been a feint to distract from what appears to be a relatively new team (a la "untouchables") put together at the SEC. I can't say for sure it comes from the administration but they got dissed and it may just be a tit for tat - not a death blow but a little heat.

On the other hand, discovery might be the real purpose. Might be able to wheedle some documents out of them (or force them to shred).