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« Perspective | Main | A lie that makes us realize truth »

Apr 17, 2010

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Steve

Well, I guess one thing we have learned is that some people did see the bubble coming and were willing to bet against the wisdom of the day. I wonder if the real estate crash had not happened and the hedge fund lost the money it invested betting against the market, would the SEC be involved. The facts of the case would be the same, just different winners and losers.

Ray Charles Ponzi Peckinpah

the people with the pitchforks and torches and the ones who have ordered the kit know that GS is the pond from where the past 3 administrations plucked their toadies. GS has more than a century old history of guaranteeing that everyone in the scam at inception gets paid and everyone else gets a lecture and chart on risk.

Jim Caserta

I once thought like Steve, but Paulson's bet further inflated the bubble by providing funding for some of the worst mortgages. Want a security to blow up - find the loans most likely to blow up and stuff them in said security.

Are there people out there who really trust Goldman Sachs? Would you be more or less wary dealing with them than with another bank?

Fred Gregory

Please excuse me for includinvg thr entire text The link hasn been doing weird things and I am unable to link it.

" Gangster Government and Goldman Sachs
Examiner Editorial
April 22, 2010

The Securities and Exchange Commission’s complaint against Goldman Sachs (New York headquarters pictured) is just another case of gangster government in action. (Mark Lennihan/AP)

In the case of the Securities and Exchanges Commission complaint against Wall Street's top investment bank, Goldman Sachs, it's hard not to wonder if this isn't a classic case of Gangster Government in action. There is a truly remarkable confluence of factors that indicate that the whole thing stinks to high heaven.

There is the obvious question of the timing of the SEC complaint. Goldman has known of the federal probe for months, but said nothing publicly about it. The SEC enforcement division, which conducted the investigation and brought the charges, is the same bunch that couldn't be bothered to investigate Bernie Madoff despite solid evidence that he was up to no good. This is also the same enforcement division that repeatedly ignored appeals by others within the agency and without to probe Robert Allen Stanford, then saw its own Fort Worth, Texas, enforcement office chief go to work for Sanford. And this is the same SEC that traditionally does not file complaints without a unanimous vote of the five commissioners. In this case, the three Democratic commissioners voted to file the charges, the two Republicans opposed doing so.

Not surprisingly, Republicans on the House Oversight and Government Reform Committee -- led by Rep. Darrell Issa, R-Calif., the ranking minority member -- have asked the SEC for records of all communication concerning the Goldman complaint between its commissioners and staff with White House aides, Democratic members of Congress and their staffs, and staff of the Democratic Senate and House campaign committees. Nobody will be surprised in the weeks ahead when the requested documents are either said not to exist, or are provided in dribs and drabs, thus delaying the process just long enough for congressional Democrats to ram the Obama-Dodd financial reform bill to passage and, with President Obama, to head into the 2010 midterm campaign claiming to have successful challenged Wall Street's biggest target.

Then there is the fact that even under the worst case scenario, Goldman isn't exactly fighting for its life. For one thing, as the Washington Examiner's Michael Barone pointed out, the SEC complaint looks flimsy, at best. Odds are that Goldman, which just announced a first-quarter profit of $3.5 billion, will make a token settlement payment and be on its way. As Wall Street's biggest investment bank, whose executives invested nearly a million bucks in Obama, and with its alumni filling multiple key financial policy and regulatory jobs in the White House and elsewhere in the executive branch, Goldman will then demonstrate the truth of what one of its unnamed executives told Politico: "We're for regulation. We partner with regulators."

-- Mark Tapscott

bubba

"Nobody will be surprised in the weeks ahead when the requested documents are either said not to exist, or are provided in dribs and drabs, thus delaying the process just long enough for congressional Democrats to ram the Obama-Dodd financial reform bill to passage and, with President Obama, to head into the 2010 midterm campaign claiming to have successful challenged Wall Street's biggest target."

Imagine that!


Fred Gregory

Sen. Collins pledges to block Democratic Wall Street bill

I think she has a point.

"Collins opposes the creation of a $50 billion orderly liquidation fund to wind down financial institutions that pose a threat to the financial system. She said the creation of such a fund would create a “moral hazard,” emboldening banks to engage in risky trading practices.

Geithner told Collins that the administration does not support the fund, which Senate Banking Committee Chairman Chris Dodd (D-Conn.) added to the legislation.

The Maine lawmaker believes the best way to reduce the systemic risk posed by large financial institutions is to raise their capital requirements, so that financial bets could not be as leveraged as in the past."

What say, Ed ?

Fred Gregory

Goldman's White House connections raise eyebrows

"WASHINGTON — While Goldman Sachs' lawyers negotiated with the Securities and Exchange Commission over potentially explosive civil fraud charges, Goldman's chief executive visited the White House at least four times.

White House logs show that Chief Executive Lloyd Blankfein traveled to Washington for at least two events with President Barack Obama, whose 2008 presidential campaign received $994,795 in donations from Goldman's employees and their relatives. He also met twice with Obama's top economic adviser, Larry Summers"

Hmmmmm....

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