Is the Goldman Prosecution a Show Trial ?

[gunDriller]

are the Jews putting on anther Broadway show ?

$1 Billion for charges for a company that was involved in many $Trillions worth of bad derivatives.

big deal !

comparatively, that's like me getting a $25 parking ticket.

it looks to me like this is the "Get Tough on Wall Street" part of the Rahm & Obama show.

http://finance.yahoo.com/news/SEC-accuses-Goldman-Sachs-of-apf-20142808.html?x=0

"The SEC said Paulson paid Goldman roughly $15 million in 2007 to devise an investment tied to mortgage-related securities that the hedge fund viewed as likely to decline in value. Separately, Paulson took out a form of insurance that allowed it to make a huge profit when those securities' value plunged.

The fraud allegations focus on how Goldman sold the securities. Goldman told investors that a third party, ACA Management LLC, had selected the pools of subprime mortgages it used to create the securities. The securities are known as synthetic collateralized debt obligations.

The SEC alleges that Goldman misled investors by failing to disclose that Paulson & Co. also played a role in selecting the mortgage pools and stood to profit from their decline in value. Two European banks that bought the securities lost nearly $1 billion, the SEC said.

"Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party," SEC Enforcement Director Robert Khuzami said in a statement."


how cute. the criminals are going to regulate themselves.

this is all bread and circuses.


http://www.bloomberg.com/apps/news?pid=20601087&sid=aQUeUoTH.BmI&pos=1

http://www.bloomberg.com/apps/news?pid=20601087&sid=aSc0uzZCL36I&pos=2

http://www.bloomberg.com/apps/news?pid=20601087&sid=advwRCgo8WwI&pos=3

[JDRock]

Mark my words ; not one sh*enie will do a single day in jail.

[Ponce]

To me that's a signal for other investors to check their own stocks and or companies as to see how "well" they are doing.

Maybe that was the "finger out of the dike" moment?.

[cigarlover]

Agrreed, everyone walks and gets a big fat raise. Just like 9/11 and the madooff BS. Noone is ever held accountable in GOV.

[Brent]

Of course, the fox is in charge of the hen house and until that is changed we won't get true justice.

[gunDriller]

i wonder if they'll televise the hearings, like on C-SPAN.

so then they can say, "See ! America is a Democracy ! The US Government gets the bad guys" (.001% of the time)

this place needs a sarcasm emoticon. 8)

[EE_]

I still don't believe Bernie Madoff is in jail. ???

[sunshine05]

I agree 100% gunDriller. That was my first thought when I heard about this.

[Ponce]

EE? what I am really surprised at is that Madoff didn't follow the money back to the state of Israel where he would had been safe..... If I could give my country 65 billions stolen US dollars and then sent to a summer camp then I also would do it...........by the way, he will not be there for "life".

[1970 Silver Art]

The "not guilty" verdict was probably already determined well before any trial begins.

After all, this is Goldman that we are talking about here and they are NEVER guilty of anything. :sarc:

[gunDriller]

The "not guilty" verdict was probably already determined well before any trial begins.

After all, this is Goldman that we are talking about here and they are NEVER guilty of anything. :sarc:

hey ! a sarcasm emoticon !

yeah, my guess is they'll be playing this thing a lot, like a f*cking Wurlitzer. we'll be hearing about the f*cking "Goldman prosecution" all summer, through the election.

they might be able to find a manager who didn't have an Israeli flag in his office, to be a scapegoat. :sarc: generally these guys (SEC investigators) don't send "members of the club" to jail.

[Book]

I still don't believe Bernie Madoff is in jail. ???


Haven't found the missing $55 Billion either...lol.

:oo-->

[Shortstack]

Looks like a scapegoat show trial to me, but what do I know? ::)


you know nothing if you don't take the time to read the SEC complaint. The op's article was written by a PIKER or a shill, probably both. Go to the sec website and read the 23 page complaint. And that's double spaced, so it's really a short read. Anyone with a triple digit IQ and a little determination can read and comprehend it. Read it twice in one day. Sleep on it, then read it one more time the next day

I allways hear the posters here claim that they are amoung the smartest and the most critical on the Internet. I have been dealing with these esoteric derivatives for the past 16 years, so I know exactly what is going on here.

Trust me when I say that goldman is in big trouble here. As you read the complaint, focus on how Goldman mislead ACA about who Paulson was. ACA took most of the recommended names from the paulson reference portfolio because Goldman lied, and told ACA that paulson was the deal sponsor. Typically (actually, all the time) the deal sponsor gets to pick out the underlying portfolio because the sponsor is the investor who is purchasing the most risky tranch ( the equity tranch). So the manager, who is reponsible for making sure that the economic interests of the investors are protected (by ensuring that the underlying securities are as strong as possible), will only accept a suggested portfolio provided by the sponsor, as the sponsors economic interests are aligned with the other investors. The manager's reputation is one the line here. The manager normally accepts the sponsors suggestions because the sponsor, who ownes the risky stuff, is INCENTED to select the stongest securities

So paulson intended to go short, and Goldman lied to ACA by saying that paulson was the sponsor. Oh, and without the good name of the impartial ACA behind the deal, none of the investors would have agreed to participate. When Paulson approached Goldman with the product, Goldman knew that without a reputable and respected manager like ACA, none of the long investors would have come on board.

This is good news for holders of PM's. Goldman will go down here, and the herd will rush to safety, accept this time, safety will be defined as everything NOT sold by Wall Street. And this is only the tip of the iceberg here, there are many deals like this, from many others besides goldman.

I look forward to absolutely trashing anyone here who dares to disagree :)

[keehah]

Globe And Mail: Britain's PM seeks Goldman probe
Germany also says it ask for details from the SEC after civil charges filed (http://www.theglobeandmail.com/report-on-business/britains-pm-seeks-goldman-probe/article1538539/)

Germany and Britain will seek details from the U.S. Securities and Exchange Commission about the activities of Goldman Sachs Group Inc. 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, who is fighting an election campaign, piled pressure on Wall Street's most powerful bank, accusing it of “moral bankruptcy” over reported plans to pay big bonuses.

Goldman Sachs was charged with fraud by the SEC on Friday over its marketing of a subprime mortgage product. Goldman has called the U.S. lawsuit “completely unfounded” and has vowed to defend itself.

“I want a special investigation done into the entanglement of Goldman Sachs and the companies there with other banks and what happened,” Mr. Brown told BBC television.

“We will work with the Securities and Exchange Commission in the United States,” he said.

[Twisted Titan]

Goldman just paid out 5 billion dollars in bounses for the first 90 days of 2010

Think about that for a second....Really wrap your mind around that figure.

Everbody involed either bought and paid for or is of no consequence to the predetermined outcome.

5 Billion Dollars can deliver that type of peace of mind.


T

[keehah]

WSJ: A Backlash in Europe Has Politicians Calling for a Goldman Ban (http://online.wsj.com/article/SB10001424052748703763904575196230749352148.html?m od=rss_whats_news_us)
By MARCUS WALKER in Berlin and DAVID ENRICH in London

Goldman Sachs Group Inc. is in danger of losing business with a key group of clients as a result of the fraud allegations it faces: governments in Europe and the U.S.

Politicians in the U.K. and Germany are starting to call on their governments to cut ties with Goldman, which has long been one of the top financial advisers to European policy makers.

U.K. Liberal Democrat leader Nick Clegg, riding high in opinion polls less than three weeks before national elections, said on Tuesday that Goldman "should now be suspended in its role as one of the advisers to the government until these allegations are properly looked into." His comments follow Prime Minister Gordon Brown's recent characterization of Goldman's alleged behavior as "morally bankrupt."

"We should let the business relationship with [Goldman] rest until the allegations are cleared up," lawmaker Frank Schäffler of Germany's Free Democratic Party, part of Chancellor Angela Merkel's governing coalition, told German newspaper Handelsblatt on Tuesday. Mr. Schäffler's office confirmed the comment...

'[Goldman] should now be suspended in its role as one of the advisers to the government until these allegations are properly looked into,' said Nick Clegg, leader of Britain's Liberal Democrats.

But the political backlash in Europe and the U.S. threatens to damage the network of political ties with policy makers that the bank has carefully built up on both sides of the Atlantic over two decades.

Goldman declined to comment on the European politicians' remarks. In a message to employees on Sunday, Lloyd C. Blankfein, Goldman's chairman and chief executive, said the bank was "taking all appropriate steps to defend the firm and its reputation."

Fair or not, the growing perception in Europe that Goldman used cutthroat tactics to turn a profit could make it an unpalatable partner for politicians who are facing voter pressure to clamp down on risk-taking by the financial sector, analysts say.

The firm is among the leading arrangers of government bond issues in Britain, Germany and many other European countries, and has a played a prominent role in privatizations in both countries.

In the U.S., the poisonous atmosphere surrounding Goldman Sachs has done more than just provide fodder for "Saturday Night Live." Anger toward Goldman was at play when the Treasury Department selected a manager to oversee the sale of the government's $32 billion stake in Citigroup Inc.

Career officials at the Treasury chose Morgan Stanley to manage the account, and said the decision was based on the firm's ability to do the work. But at the time of the decision, an administration official said there was recognition inside the government that choosing Goldman, which has similar expertise, could trigger a firestorm...

[gunDriller]

Looks like a scapegoat show trial to me, but what do I know? ::)


you know nothing if you don't take the time to read the SEC complaint. The op's article was written by a PIKER or a shill, probably both. Go to the sec website and read the 23 page complaint. And that's double spaced, so it's really a short read. Anyone with a triple digit IQ and a little determination can read and comprehend it. Read it twice in one day. Sleep on it, then read it one more time the next day
...

I look forward to absolutely trashing anyone here who dares to disagree :)


it is true - 1% - or .1% - or .01% - of the time, the government does its job.

and it might be more than a show trial, in the sense of having a cost to Goldman that is higher, in proportion, than me getting a parking ticket.

but in terms of the banksters in and around the government, do you think this is any more than when a lizard loses its tail ? (you know, the predator gets a squirming tail, the tail grows back).

Goldman Sachs is a corporation - a group of people with a legal entity attached. Should the legal entity become inconvenient for the criminal Jews at the heart of Goldman, they will move on, to Wells Fargo or Israel, who knows.

of course, if Justice were done, we would see Greenspan, Rubin, and Summers behind bars with a hundred thousand other bankers. they would be selected because they were found to have participated in similar frauds as GS/ACA/Paulson, not because they were Jewish.

however i think no such unusual prison demographic is about to arise.

[keehah]

Goldman Sachs Eats Its Young (http://revoltoftheplebs.wordpress.com/2010/04/20/goldman-sachs-eats-its-young/)

Paulson had presented a roster of sub-prime mortgage deals that he was betting would fail in the housing market. He paid Goldman Sachs $15 million to find clients that would bet the other way. The scheme was packaged into what has come to be known as an ‘Abacus Deal’.

Tourre is alledged to have taken this portfolio to potential investors and sell them as favorable risks while hiding the fact that he was working with Paulson, who was betting against them.

To help with pitching these toxic investments, they employed the services of ACA Capital Holdings, Inc. and convinced them that Paulson was actually investing in these mortgages. Tourre and Paulson then used ACA’s endorsement of the mortgages as a credible and sound investment. Everything went as planned and Paulson cashed in on a cool $1 billion while the Goldman Sachs investors took it in the shorts.

Now the SEC has been called in to restore their tarnished image with the public by bringing suit against the investment giant and taking aim, in particular, at the novice Tourre. So far, the SEC has conducted five interviews including one with the now notorious ‘Fabulous Fab’. They have not elected to interview any one of the top Goldman Sachs executives, including Tourre’s manager Jonathan Egol. They’ve also apparently found no need to trouble Mr. Paulson with any of their inquiries. Goes to show you that only the little minnows get swallowed up in the cesspool of Wall Street.

Tourre is said to have been well liked and popular at Goldman Sachs. He is known for his impeccable charm and biting sense of humor. Up through and including 2008, he has reportedly been pulling in over $2 million a year. He has since moved to an office on Fleet street in London and has been “living it up” and throwing loud, lavish parties out of his luxurious bachealor flat. Apparently, Tourre has been laying low and ducking media interviews. But you can bet that the boys at Sachs have already sent their best attorneys to drape an arm around his back and rub his shoulders. You can probably imagine the scene: The poor kid (boo hoo) is probably cradling his face in his hands and shaking his head as the Sachs lawyers whisper in his ear that everything is going to be O.K. “Just keep quiet” they’re telling him—“We’ll do all the talking. You’re probably going to have to take the fall on this one, but we’ll do everything within our power to make sure you’re well taken care of when this thing blows over.”

Meanwhile, back in the States, his bosses are laying the groundwork for pinning all of the blame on this minor player.