GoldmanSachs666 Message Board

According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage".[1] In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain
*As defined in Wikipedia

Friday, April 16, 2010

Goldman Sachs charged with FRAUD

US charges Goldman Sachs with fraud

The Securities and Exchange Commission has charged investment banking titan Goldman Sachs with civil fraud over a pre-packaged mortgage instrument they say was designed to fail.Goldman Sachs created the derivative -- called Abacus 2007-AC1 -- in response to a request from a hedge fund manager who predicted that the housing market would collapse and wanted to bet against it. The trader, John Paulson, later earned $3.7 billion for his wager.
According to the New York Times, which first revealed details of the Abacus case, the instrument was among 25 Goldman created so that clients could bet against the housing market


Read the rest here

...more later

I think it's important for people to realize how big a deal derivatives are. Here's a good article.
The One Market the Fed Hopes You Won't Find Out About

Update: SEC says Goldman defrauded investors of $1 billion

Comments from fUny1: 


There is one pertinent question that must be asked not only of the SEC but of Goldman Sachs?

Why today? Why on an options expiration day?

Is the SEC in collusion why Goldman Sachs? It is beyond suspicion that this happened on an options expiration day. Had this occurred next Monday it would have been suspicious also.

Did the SEC staff not know that today was expiration day? Hardly!

Someone must have known about these proceedings and guess #1 is Goldman Sachs.

Who's going to investigate Goldman's traders and their purchasing of puts on their own securities to bet against themselves in effect and win big.

How big?

If a gambler( aka Government Sachs Casino Services, Inc) had put down 1 grand on their $170 April put options in the morning when they were trading for pennies, by high noon that 1k bet(plus 1k commissions) would be worth at least a cool million if not 1.45 million.

Does the SEC care to find out who else was betting on Goldman to fall this much on options expiration day?

This would be a loop feedback type of investigation where the SEC would be investigating its own leaks on this case.

A slap of the hand indictment was bound to happen, but there's a reason why you don't indict on options expiration days, unless you have the need to make 110,000 % on your money in one day.

That means you Ben's Bernanke's Brigade of bribed primary dealers. Who's going to investigate you?


Anonymous said...

Watch Obama and crew come to the rescue of Goldman !!

fUny1 said...

How much you want to be that Goldman's traders were betting against their own stock via put options this morning in collusion with the SEC's decision to release the civil charges against Goldman on options expiration day?

Who else benefited from this?

Anonymous said...

Goldman is not worried about this suit yet...let's see where it goes...their just throwing a bone to the public to quell the charges of cronyism.

Anonymous said...

Incredible break or not credible?

Cramer "Breaks" News About Goldman Being Long Abacus, No Disclosure On Goldman's Short Exposure In The Structured Product

Anonymous said...

Who is Sylvain Raynes and How Did He Make it on CNBC?
Out of the blue in the last hour comes Mr. Sylvain Raynes - never heard of him. According to his Linkedin page - he is owner of R&R Consulting, and formerly an analyst at Moody's. A quick google search shows this story on the backdoor bailout of firms like Golman via AIG in March 2009 (NYT) in which he is quoted:

The system was undermined by asking the American people, under the veil of secrecy, to bail out one company when in fact they wanted to bail out someone else,” said Sylvain R. Raynes, an authority in structured finance and a founder of R & R Consulting, a firm that helps investors gauge debt risks. “The prospectus for the bailout was not delivered to the people. And it was not delivered because if it had been, the deal would not have gone through.

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