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Goldman Sachs charged with fraud.

46 durable postsStarted 2010-04-16Latest 2010-05-11

#82523Post 1 of 462010-04-16

[URL]http://www.sec.gov/news/press/2010/2010-59.htm[/URL]

Wowee.

     [FONT=Verdana,Arial,Helvetica][SIZE=2]
[/SIZE][/FONT][B][FONT=Verdana,Arial,Helvetica][SIZE=2]SEC Charges  Goldman Sachs With Fraud in Structuring and Marketing of CDO Tied to  Subprime Mortgages[/SIZE][/FONT][/B]

[B][FONT=Verdana,Arial,Helvetica][SIZE=2]FOR IMMEDIATE RELEASE

2010-59[/SIZE][/FONT][/B]

[FONT=Verdana,Arial,Helvetica][SIZE=2][I]Washington, D.C., April 16, 2010[/I] — 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.[/SIZE][/FONT] [B][FONT=Verdana,Arial,Helvetica][SIZE=2]Additional Materials[/SIZE][/FONT][/B]

[LIST] [][FONT=Verdana,Arial,Helvetica][SIZE=2][/SIZE][/FONT][FONT=Verdana,Arial,Helvetica][SIZE=2] [][URL="http://www.sec.gov/litigation/litreleases/2010/lr21489.htm"]Litigation Release No. 21489[/URL] [*][URL="http://www.sec.gov/litigation/complaints/2010/comp21489.pdf"]SEC Complaint[/URL][/SIZE][/FONT] [/LIST]

[FONT=Verdana,Arial,Helvetica][SIZE=2]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.[/SIZE][/FONT]

[FONT=Verdana,Arial,Helvetica][SIZE=2]Good...someone needs a foot in the ass for this. [/SIZE][/FONT]

#1361918Post 2 of 462010-04-16

Re: Goldman Sachs charged with fraud.

About fecking time. Wow I feel a little bit better after reading this.

#1361926Post 3 of 462010-04-16

Re: Goldman Sachs charged with fraud.

Let' save the celebration for when someone is convicted and goes to jail. If they get a fine I will lose my mind.

It's a start I guess.

#1361929Post 4 of 462010-04-16

Re: Goldman Sachs charged with fraud.

^My only "Canadian" cousin worked for GS btw...

...just say'n

#1361930Post 5 of 462010-04-16

Re: Goldman Sachs charged with fraud.

:lol:

#1361936Post 6 of 462010-04-16

Re: Goldman Sachs charged with fraud.

:lol::lol:

A lot of people from all different corners of the earth work for GS. I knew there was a little "corrupt" in your blood.:p

#1361938Post 7 of 462010-04-17

Re: Goldman Sachs charged with fraud.

^Cousin-in-law! I should have specified.

p.s. "you don't know sh*t Lebowski" :lol:

#1361941Post 8 of 462010-04-17

Re: Goldman Sachs charged with fraud.

Yes, it's about time that Goldman got charged with something. I also think the SEC should have charged the hedge fund manager that made billions off shorting against the mortgages he selected.

#1361952Post 9 of 462010-04-17

Re: Goldman Sachs charged with fraud.

Even if they don't get a conviction, something like this could damage their reputation badly enough to cause their client portfolio to jump ship.

#1361978Post 10 of 462010-04-17

Re: Goldman Sachs charged with fraud.

^that is totally possible. im sure they will lose some stature and not be the gold standard firm now at least, which is good imo, fuck em. i hope people bail on their ass and they reap the consequences. jail time though? i doubt it which is a travesty, i would love to see some fat ass cats going to federal pound me ass prison. damnit i wish i was a judge, i would be a total dick.

#1361980Post 11 of 462010-04-17

Re: Goldman Sachs charged with fraud.

Nah, you're right; up here in Canada Bank of Montreal execs were caught pulling some stock chicanery (buying their own stock at the end of the day to inflate their standing at the end of the day) back in 1999-2000. Most got temporary reprieves that wouldn't allow them to trade for a year or two from the Canadian Securities Board and maybe a few fines.

I'm thinking they'll probably issue a few fines, but I seriously doubt any jail time will come out of it - with maybe the VP resigning.

#1362140Post 12 of 462010-04-17

Re: Goldman Sachs charged with fraud.

From what I read, it appears to be a civil trial so no jail time will come out of this only fines. The timing for this lawsuit appears to not be coincidental too since the Congress is debating a financial legislation bill.

#1362380Post 13 of 462010-04-19

Re: Goldman Sachs charged with fraud.

This is a very interesting take on this:

[url]http://whitecollarfraud.blogspot.com/2010/04/did-clever-sec-bait-goldman-sachs-into.html[/url]

#1362415Post 14 of 462010-04-19

Re: Goldman Sachs charged with fraud.

[QUOTE=superdave;853958]From what I read, it appears to be a civil trial so no jail time will come out of this only fines. The timing for this lawsuit appears to not be coincidental too since the Congress is debating a financial legislation bill.[/QUOTE]

Plus elections are coming and they have to look like they are tough on the issue. What a joke it is so obvious it makes me want to throw up.

#1362418Post 15 of 462010-04-19

Re: Goldman Sachs charged with fraud.

The above article is suggesting that the SEC filed the complaint late on Friday to get a reaction from the company w/o a lot of time to think and oversight by their lawyers. Since they made statements over the weekend that could be knee jerk reactions and lies, they can be held accountable in the future for more possible lawsuits and also from investors who were misled from these very press releases stating that these SEC complains are false. Pretty interesting.

#1362419Post 16 of 462010-04-19

Re: Goldman Sachs charged with fraud.

And what happened when these Goldman complaints came out? The stock market went down 100 points. .They are doing it again. Max Keiser is right. They are financial terrorists and they are now holding a gun to the head of the economy.. They are saying "go ahead, try to take us to court, we will blow the head off the economy because we are now WAY to big to fail." They are bigger now then before.. TBTF's are all bigger.. The problem is bigger.

#1362428Post 17 of 462010-04-19

Re: Goldman Sachs charged with fraud.

The problem is that they come up with these fucked up financial products which they claim are hedged against some fucked up market no one follows which is in turn hedged against the rate of a currency not traded on the currency market which is hedged against the chance of snowfall in Zaire and then they expect somebody to evaluate the rate of this product and tell them if the model is correct....then when no one can evaluate it their model is accepted and at the end of the year they report earnings which no one can investigate or confirm and they receive huge bonuses. Finally when an audit is done and they realize that those earnings are false they just turn around and say our model was incorrect. This is unfortunately the reality of trading as i have discovered over the past 6 months. Blind leading the blind.

#1362494Post 18 of 462010-04-19

Re: Goldman Sachs charged with fraud.

Two good posts Shpira. I like your style.. Except for the Obama stuff.:lol:

Goldman Sachs to pay out $5 Billion in MORE bonuses!!!! OMFG!! Now I know why the gov't came out with this story a few days before this one came out. It all makes sense now.

[URL]http://rawstory.com/rs/2010/0419/goldman-sachs-pays-5-billion-bonuses-fraud-charges-loom/[/URL]

Watch out the Americans are going to start shooting soon. This is too outrageous to even comprehend. People are losing their homes at an unprecidented rate and these guys are giving a second round of bonuses worth $5 Bil? WOW..

#1362833Post 19 of 462010-04-20

Re: Goldman Sachs charged with fraud.

This is an interesting take on the current situation:

[URL]http://www.huffingtonpost.com/tyler-cowen/you-think-the-government_b_542475.html[/URL]

You Think The Government Doesn't Want Big Banks? Think Again

#1363046Post 20 of 462010-04-21

Re: Goldman Sachs charged with fraud.

I don't see anything really coming from this, GS reported record earning this quarter (big surprise) and although today they're stock was down and Morgan Stanley's was up, I seriously doubt this one indictment is going to tarnish their reputation very much to their investors... If value is being created, we humans tend to forgive and forget rather quickly.

#1363183Post 21 of 462010-04-21

Re: Goldman Sachs charged with fraud.

If they slide a cool $500k into my account I will have no problem asking Kamal to delete this thread. :)

#1363338Post 22 of 462010-04-22

Re: Goldman Sachs charged with fraud.

[IMG]http://www.charlierose.com/view/interview/10973[/IMG][URL]http://www.charlierose.com/view/interview/10973[/URL]

#1363353Post 23 of 462010-04-22

Re: Goldman Sachs charged with fraud.

[QUOTE]Dem vs. Rep. you all need to get over it. The wealthy control everything. Any business or investor that doesn't have enough money to carry them through several bad years shouldn't be investing.

Derivatives are gambling and nothing less. How is permitted that Billions of dollars were placed as a "derivative" bet as to whether or not Greece would be able to pay back their debt. Then low and behold someone was there to help them out. If Americans don't wake up and realize that the longer we get stuck on Dems vs. Rep. we will continue to stay right where we are at.

We get caught up in the propaganda and don't search for the truth ourselves. We don't hold anyone accountable for ANYTHING. Nothing has ever come out of governmental hearings...why would that change.

We are the country that spent a trillion dollars because we were so concerned about the Iraqi people. When the truth is we could care less about those people. Millions are still in tent camps are not allowed to leave. We are all talk. - even the Tea Party. They demand the same things that people have been demanding for years. I do give them credit for getting together (although the average Tea Party member is white, well-off, older, and can take the time to make this their current hobby). But if I was in the service I would be greatly offended that no one banded together to stop the war yet was getting together over taxes.

When you buy into the propaganda you already lost the game. This game hasn't changed throughout history - the mega wealthy pull the strings and it doesn't matter what political party you belong to but rather whom you know.

War, human trafficking, child molestation, Americans living in poverty, public education compared to private (not charter but boarding schools)...these are issues we should be talking about each and every day.

We need to hold people accountable and not let our government put medals on their friends that fail us. Why can’t I gamble on the NFL game but millionaires can gamble on Greece? There is no difference. And until we demand that this practice stops we will see pensions drop, benefits cut, and more bailouts.

Derivatives are illegal gambling. Take this toy away from the big dealers.[/QUOTE] not a bad argument

#1363449Post 24 of 462010-04-22

Re: Goldman Sachs charged with fraud.

it is a good argument.

#1364872Post 25 of 462010-04-27

Re: Goldman Sachs charged with fraud.

[url]http://www.kpbs.org/news/2010/apr/27/senators-press-goldman-officials-about-practices/[/url]

                                                              [B]Senators To Press Goldman Officials  About Practices[/B]

                   
                                                                                                         By                  Associated Press     
                                                  April 27, 2010                                  

          The CEO of Goldman Sachs and other executives from the Wall  Street powerhouse are coming before Congress 10 days after the  government accused the firm of fraud. The Senate panel hearing their  testimony Tuesday alleges that Goldman used a strategy that allowed it  to profit from the housing meltdown and reap billions at the expense of  clients.
                           [URL="http://kpbs.media.clients.ellingtoncms.com/img/photos/2010/04/27/goldman_tx700.jpg?8e0a8887e886a6ff6e13ee030987b3616fc57cd3"][IMG]http://kpbs.media.clients.ellingtoncms.com/img/photos/2010/04/27/goldman_t250.jpg?2fda506767b58ed02cfc53b8db969377bec8c5c0[/IMG][/URL]               
              [URL="http://kpbs.media.clients.ellingtoncms.com/img/photos/2010/04/27/goldman_t700.jpg?f40c0e74b997dbb01ce524758e0d04a31382c8af"]Enlarge this image[/URL]                      Win McNamee / Getty Images                  
          Above: Holding a stack of evidentiary papers,  Sen. Carl Levin (D-MI) answers questions relating to the disclosure of  Goldman Sachs internal emails April 26, 2010 in Washington, DC. 

Goldman executives misled investors in complex mortgage securities  that turned toxic, investigators for the Senate subcommittee say. They  point to a trove of some 2 million e-mails and other Goldman documents  obtained in an 18-month investigation. Excerpts from the documents were  released Monday, a day before the hearing bringing CEO Lloyd Blankfein  and the others before the Senate Permanent Subcommittee on  Investigations.

Blankfein says in his prepared testimony that Goldman didn't bet against its clients and can't survive without their trust.

[URL="http://www.kpbs.org/news/2010/apr/27/senators-press-goldman-officials-about-practices/"]more from this article here[/URL]

#1364881Post 26 of 462010-04-27

Re: Goldman Sachs charged with fraud.

cough cough bullshit

#1364973Post 27 of 462010-04-27

Re: Goldman Sachs charged with fraud.

These clips from the hearing today speak for themselves.

[video=youtube;QO9UGQtmuus]http://www.youtube.com/watch?v=QO9UGQtmuus[/video]

[video=youtube;ghIAiHvyMVg]http://www.youtube.com/watch?v=ghIAiHvyMVg[/video]

[video=youtube;q31vz-T1QX4]http://www.youtube.com/watch?v=q31vz-T1QX4[/video]

#1364993Post 28 of 462010-04-27

Re: Goldman Sachs charged with fraud.

Good overview:

[video=youtube;R7TU5rZvegA]http://www.youtube.com/watch?v=R7TU5rZvegA[/video]

#1365127Post 29 of 462010-04-28

Re: Goldman Sachs charged with fraud.

[QUOTE] Even as Goldman Sachs (GS) is grappling with a congressional inquiry and the Securities and Exchange Commission's civil suit accusing it of securities fraud, Wall Street is almost unanimous in its support of the largest and, at least recently, the most profitable investment bank. None of the 29 Street analysts who track Goldman recommend selling the stock. In fact, 22 continue to rate it a buy, and seven others peg it a hold, or neutral.

See full article from DailyFinance: [url]http://srph.it/b6B4Wj[/url][/QUOTE]

as expected

#1368950Post 30 of 462010-05-02

Re: Goldman Sachs charged with fraud.

[B]Buffett Defends Goldman; Berkshire Posts Profit [/B]

[url]http://online.wsj.com/article/SB10001424052748704608104575218071029226354.html?mod=WSJ_hpp_LEADSecondNewsCollection[/url]

#1368957Post 31 of 462010-05-02

Re: Goldman Sachs charged with fraud.

Here. I can prove the case in THREE FUCKING LINES.

the Feds arrested and are presently detaining sergei aleinikoff (sp?) for 'stealing' code that GS had hired him to write/maintain.
Sergei claims that the code he was working on enabled GS to manipulate the markets in great magnitudes, but in a way that was virtually undetectable (we're talking thousands of dollars on thousands-of-a-second differences.....think 'Office Space" but not actually fucking the plan up).
Give him immunity (or hell, drop those rediculous charges), and have him testify against GS.

#1368975Post 32 of 462010-05-02

Re: Goldman Sachs charged with fraud.

[QUOTE=res0nat0r;858366][B]Buffett Defends Goldman; Berkshire Posts Profit [/B] [URL]http://online.wsj.com/article/SB10001424052748704608104575218071029226354.html?mod=WSJ_hpp_LEADSecondNewsCollection[/URL][/QUOTE]

Thanks Res, good article.

[quote] In a twist, Mr. Buffett said the SEC charges against Goldman have helped Berkshire Hathaway. He noted that Goldman could redeem Berkshire's $5 billion investment at any time, and that Goldman has an economic incentive to do so. The reason: Goldman is paying a 10% rate on the investment, coming to $500 million a year, or, as Mr. Buffett said at the meeting, $15 a second.

He held up a hand and counted up the profit to illustrate the point. "Tick, tick, tick," said Mr. Buffett. "Goldman would love to get rid of that."[/quote]

^but regardless, it would make sense that someone like Buffett would defend Goldman...and not because of any grandiose conspiracy, rather because they have had a good working relationship over the years.

Buffett knows he can sit up stage eating See's Candy and drinking Coke and defend Goldman and it's not as if common every day people are going to stop drinking Coke :lol: Kind of laughable in a f*cked up way really. [URL="http://online.wsj.com/article/SB10001424052748704608104575218071029226354.html?mod=WSJ_hpp_LEADSecondNewsCollection#"] [/URL]

#1369408Post 33 of 462010-05-03

Re: Goldman Sachs charged with fraud.

This is a good read too:

[url]http://www.vanityfair.com/business/features/2010/04/wall-street-excerpt-201004?printable=true[/url]

#1369480Post 34 of 462010-05-04

Re: Goldman Sachs charged with fraud.

video (interview): [URL]http://www.charlierose.com/view/interview/10989[/URL]

[IMG]http://i42.tinypic.com/facths.png[/IMG]

#1369481Post 35 of 462010-05-04

Re: Goldman Sachs charged with fraud.

^oh nice. that should be interesting.

#1369490Post 36 of 462010-05-04

Re: Goldman Sachs charged with fraud.

anyone catch that GS shorted Gulf Oil drilling about a day before the rig exploded?

#1369651Post 37 of 462010-05-04

Re: Goldman Sachs charged with fraud.

[QUOTE=res0nat0r;858976]^oh nice. that should be interesting.[/QUOTE]

Try to watch all of it, it get's a bit stale near the middle, but the last 15 minutes are really interesting, Charlie Rose is just great at what he does.

#1369707Post 38 of 462010-05-04

Re: Goldman Sachs charged with fraud.

I don't believe any article with Buffet in it. The guy is a crook.

#1369729Post 39 of 462010-05-04

Re: Goldman Sachs charged with fraud.

^dude you gotta tone it back a bit, you cant keep trolling with obviously trollish statements like that. ;)

#1369816Post 40 of 462010-05-05

Re: Goldman Sachs charged with fraud.

[QUOTE=res0nat0r;859250]^dude you gotta tone it back a bit, you cant keep trolling with obviously trollish statements like that. ;)[/QUOTE]

buffet is a bit of a crook though.