The New York Times' Timely Whitewash of Goldman SachsRead the rest here
At this critical moment, while the House and Senate are merging the final measure of the most significant changes to financial regulation since the Great Depression, Goldman Sachs is fighting tooth and nail to water down Congress' Financial Regulatory Reform Bill before it comes to a vote in the next days. It is a moment for the 'old boy' network to go into high gear.
Goldman's objective is to protect its massive proprietary trading desks, the source of much of its profits and the focus of the new bill. The bill reportedly incorporates a tough 'Volcker Rule' prohibiting banks engaged in commercial lending -- and thereby having access to federally insured deposits, access to myriad federal programs and bountiful Federal Reserve funds at the Fed window -- to engage in naked trading (placing bets on commodities and financial instruments in which they or their clients have no business interest, i.e. taking out fire insurance on someone elses house, as a grim hypothetical).
It is what Goldman, once having been a classic investment bank helping to finance businesses and grow the economy, now does most profitably. In other realms it's known as playing casino with the house's money, and the Volcker Rule would bring it to a stop. It would cause them to move their 'proprietary' trading activities to other entities where they no longer have preferred access to the banking system and implied federal guarantees, thereby placing the entire system at risk, as was the case with much of Wall Street during the recent meltdown.
So just this week, along comes a great whitewash orchestrated by the New York Times and their star financial reporter, Andrew Ross Sorkin.....
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". 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, June 18, 2010
It's going to take more than Dawn dish soap and a scrub brush to scrape the stench off of Goldman Sachs. It would be easier for a leopard to change its spots than it would be for Goldman to stop being an economic cannibal.