Why a Criminal Case Against Goldman Sachs Matters and Why Charges Could Stick
Goldman Sachs used to be the firm that pursued top government posts; now government is in hot pursuit of it, and not in a good way. The SEC has charged the firm and an employee, Fabrice Tourre, with securities fraud and the Justice Department has commenced a criminal investigation, according to news reports.
Change appears to be swallowing Goldman Sachs. It began quietly moving out of its storied and staid headquarters at 85 Broad last Fall to flashy new multi-billion dollar digs at 200 West Street, including a 54,000 square foot gym (roughly the size of 20 homes for average Americans; those who can still afford one after the Wall Street pillage). And after the release of internal emails by the SEC and Senate, Goldman looks more like a sleazy boiler room pump and dump operation in drag than an investment bank (in drag as a bank holding company). Comedy talk show hosts are having a field day (Jon Stewart calls them “those f*!*!ing guys”) and Goldmanfreude (pleasure in watching Goldman shamed for the pain it inflicted on others) is in full swing.
It all sounds eerily familiar to the wealth transfer maneuver by Goldman Sachs Trading Company in the asset bubble of 1928.
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2 COMMENTS:
Just in case you did not notice that Buffett spoke out of 2 sides of his mouth this weekend.....makes you wonder why he's always on cnbc..they can relate.
Buffett's Omaha Show Just Another Corporate Bubble: Alice Schroeder
He touted one quarter’s earnings of NetJets as if they were meaningful, defended Berkshire’s lobbying in Washington, justified the firm’s use of “financial weapons of mass destruction” (derivatives), trashed the actions of the CEO of Kraft Foods Inc. while defending those of the CEO of Goldman Sachs, and talked of a future of higher inflation rates and lingering unemployment on the heels of a year of cheerleading investors to buy U.S. stocks at high valuations.
http://tinyurl.com/2anvpc9
It seems to me that Buffet the Buffoon is talking his book. He's full of it like the rest of them. Derivatives that aren't a legitimate hedge are unregulated gambling as far as I'm concerned and should be treated as such- unenforceable and illegal.
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