Goldman Sachs charged with fraud

[ilovedomains]

http://www.reuters.com/article/idUSN...pe=marketsNews
The case has also ensnared John Paulson, a hedge fund investor whose firm Paulson & Co made billions of dollars by betting the nation's housing market would crash. This included an estimated $1 billion from the transaction detailed in the SEC lawsuit, which the agency said cost other investors more than $1 billion.

Now... why isnt this front page news?
Greenspan to Join Hedge Fund Paulson & Co. as Adviser
http://www.nakedcapitalism.com/2008/...aulson-co.html

[Nathan King]

Now... why isnt this front page news?

Not surprising but thanks for the info.

[Gerry]

I've been following the Goldman news since it broke this morning.

Right now, this is nothing more than a "civil" matter. That actually sucks.

What we need to happen is for Federal Investigators to get involved and bring Criminal Charges against these people.

I have also heard that action may be pending against more firms (some now defunct) and more CEO's, etc (former CountryWide Mortgage was mentioned by name).

This shows how the financial companies and Wall Street are Rotten To The Core!

Take JP Morgan. Given $25Billion in bailout money. What did they do to it? Nothing. Absolutely nothing. Even the CEO is on record saying they were not likely to use it to modify mortgages. What they did do is invest OUR MONEY to the point that they made money. Then, when they were told they MUST USE TARP money for loan modification, they suddenly paid it back. WTF??????????

If they could pay the $25B back in no time flat, then they really did not need it. Not only did they not need it, they sat on OUR money for more than a year and made money that way - as interest.

And, now JP Morgan has recently reported record quarterly profits? Over $3B in one quarter - in profits.

[Acro]

Goldman Sachs is behind the artificial inflation of Greece's debt.

[bobovia]

I need a bailout! Send me your insider information!

[18493]

This isn't even a noteworthy story. Goldman Sachs is on both sides of trades within their hedge funds and money management. They have internal trading strategies; paired-trades; different vehicles to net long & net short the market/bonds.

Blaming Goldman for this mess is ridiculous. Madoff was a criminal action. Not Goldman's actions.

Goldman probably advised the government for the civil suit just so their is an appearance of "equitable" treatment against Goldman.

Goldman has the "banking" FDIC backing now - as does Morgan Stanley.

This headline makes Joe Sixpack feel good, but it's an immaterial suit.

[Seraphim]

Wall Street™
Hey Beavis, I just leveraged modern civilization.

[Gerry]

Blaming Goldman for this mess is ridiculous.

I think this is just the cusp of the hearings and probable indictments.

[18493]

I think this is just the cusp of the hearings and probable indictments.

DocCom - what did Goldman do that was wrong? Almost every cabinet position in every administration has had prominent Goldman Sach's retirees, ex-management. Paulson worked with Goldman, and visa-versa. Goldman is the primary counter-party on many trades. They have the MIT PhDers working for them that the US Government couldn't even attract for a lunch. Goldman, JP Morgan, Morgan Stanley are the bloodline for IPO's; trading T-Bills, T-Bonds. If Goldman goes under, everyone suffers.

The government has taken out to much debt. Individuals took out mortgage loans that they couldn't afford to pay.

Any suit against Goldman has Goldman's blessings. Being on the wrong side of a Goldman suit is not a pleasant situation. You have the entire US Federal Government against you. Check any Federal administration (democrat or republican), and you'll see Goldman contacts influence every major decision.

Just how things are. Having smart folks from the private sector makes sense. Whether they are overly compensated, have to much power - well everyone ha a view of that issue.

Regarding your question, is Goldman entitled to be deemed innocent until proven guility? Or are they guilty because they are Goldman?

[bigboydog_0]

I've been following the Goldman news since it broke this morning.

Right now, this is nothing more than a "civil" matter. That actually sucks.

What we need to happen is for Federal Investigators to get involved and bring Criminal Charges against these people.

I have also heard that action may be pending against more firms (some now defunct) and more CEO's, etc (former CountryWide Mortgage was mentioned by name).

This shows how the financial companies and Wall Street are Rotten To The Core!

Take JP Morgan. Given $25Billion in bailout money. What did they do to it? Nothing. Absolutely nothing. Even the CEO is on record saying they were not likely to use it to modify mortgages. What they did do is invest OUR MONEY to the point that they made money. Then, when they were told they MUST USE TARP money for loan modification, they suddenly paid it back. WTF??????????

If they could pay the $25B back in no time flat, then they really did not need it. Not only did they not need it, they sat on OUR money for more than a year and made money that way - as interest.

And, now JP Morgan has recently reported record quarterly profits? Over $3B in one quarter - in profits.

goldman needs to give back all there bonuses!!!!

[Gerry]

I want to see people in handcuffs.

I want fines.

I want convictions.

I want to see these people and institutions bleed money.

[500,000]

...

[Gerry]

Don't for get... It all stated when, Yes, the US government forced banks to loan big money to a person that could not pay it back.

The US Gov did not "force" banks to give money. A law passed in 2005 made it more difficult to file personal bankruptcy. This was lobbied very heavily by banks and credit card companies.

http://coverttruth.com/index.php?opt...d=16&Itemid=35

[H2FC]

Free business trade without lawful controls always lead to greedy corruption. History has proven this to be true.

Big business run by the rich and greedy can never be trusted to police themselves and any who believe otherwise are badly mistaken. Big government with lawful controls is the only power on earth that can keep the rich and greedy from destroying the free world.

[500,000]

...

[18493]

Irrelevant if Money is Paid Back - Based Upon the Current US Debt Structure:
If Goldman, JP Morgan, General Electric, Morgan Stanley, Citi all gave back every dime they took; repaid every bonus (who would work for a company that did not offer a bonus..but that's besides the point) -- can anyone explain to me how it would impact the US National Debt and the US National annual budget deficiit every year? It simply wouldn't make any difference. The size of the debt is so outrageous tha we don't even come close to paying the interest charge on your outstanding obligations each year: http://www.usdebtclock.org

The problem is nobody at any point in time has wanted to pay higher taxes for a balanced budget. Most people want more from the government as entitlements but don't want to pay the appropriate share of taxes to cover these benefits. It's a never ending cycle. It's why we end up with the politicians that we have in office. They tell voters what they want to hear (eg. lower taxes, tax the wealthy, get out of Iraq, free healthcare, etc) - and then when they are elected, it's the same old business-as-usual.

Currency Hedge:
It's pretty easy to go long the Aussie/Canada/China currencies and short the US dollar. There are many ways to protect oneself from a currency default. When gold starts getting on page 1 of the magazines, it's probably a better time to put some limit orders in to get ready to exit their position. Every trade becomes overbought.

One idea: The Gabelli Global Gold, Natural Resources & Income Trust: Monthly Dividend and Gold-Focused (inflation/currency protection):
A closed-end fund, GGN=symbol, does offer the investment in publicly traded gold/mining companies. http://www.cefconnect.com/Details/Su...spx?ticker=GGN for an overview. GGN does pay a monthly dividend.

The direct site for info (Mario Gabelli's firm runs the CEF): http://www.gabelli.com/funds/products/-116.html

[500,000]

...

[Gerry]

There is only one event that coincides with the debacle we are on the edge of emerging from.

A bill passed.

Land of the Free...money!

circa2005...bought, paid for, and endorsed by the GOP, banks, and CC issuers.



You know, I really have no idea how old you are. But I lived through the 1970's, and 80's, and 90's, and the first decade of 2000 as an adult.

Yes, all of those decades. As an adult, as someone tuned into national politics, as a patriot, as a registered republican. But always was open minded to seeing the entire picture.

And if you or anyone wants to blame what happened in 2005 and 2007 on something that transpired in the 1990's or even the 1970's, then there are bigger fools around that I thought I would never see in my lifetime.

Yeah, the dems set this recession up and blamed Bush...shit, you must be the ****in busdriver for that tea bagging bunch.

[500,000]

...

[Gerry]

You are so up in the clouds with this Jimmy Carter bullshit being the cause of what transpired in 2005 and 2007.

Why stop there.

Blame the Brits for being a bunch of pussies by laying down their arms and surrendering the colonies.