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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

Thursday, October 28, 2010

The Revolving Half-Door of Goldman Sachs in Canada

The tentacles of Goldman Sachs reach far and near. Of all the people that Governor Mark Carney of the Bank of Canada could have chosen to assist him in making policy, it had to be a GS man! That's the loyalty that GS brags about and which creates all those revolving doors from government to finance and back again. Of course, it would be a Conservative government that would not see any harm in building such a monstrosity. After all, Flaherty has given Canada its biggest deficit ever--$545 Billion--and that's the debt we have been given even when Flaherty tells us that our banks and economy weathered the recession better than almost any other country! Sometimes it takes more than just following "guidelines" to make good decisions.

Goldman Sachs Hire at Bank of Canada Followed Guidelines, Flaherty Says


Canadian Finance Minister Jim Flaherty said the country’s central bank followed conflict of interest guidelines when it hired an adviser from Goldman Sachs Group Inc.

Bloc Quebecois lawmaker Daniel Paille and Thomas Mulcair of the New Democratic Party both asked about the hiring of Timothy Hodgson for an 18-month term. Flaherty said in response that the bank makes its own staffing decisions and that Hodgson has “severed” his ties to the private sector.

Governor Mark Carney and Hodgson worked together at Goldman Sachs in New York from 1998-2000, and Hodgson was hired by the central bank this year to work on developing rules for trading repurchase agreements and over-the-counter derivatives, and regulations to ensure banks have enough capital. Carney told opposition lawmakers during committee testimony yesterday employees are bound by a code of conduct and a conflict of interest policy.

“It’s a question of the revolving door back to the private sector,” Mulcair said today while asking questions of Flaherty, adding that Hodgson’s contract has no “cooling-off period.”

“Any appearance of conflict of interest in our democratic institutions undermines the public’s trust,” Mulcair said.

Flaherty replied by saying “the person in question has severed his ties with the private sector” and “the Bank of Canada makes its own hiring decisions.”

Bank of Canada spokesman Jeremy Harrison said that Hodgson “has resigned from Goldman Sachs, severed all ties, divested himself of all his holdings of Goldman Sachs stock and placed his other investments in a blind trust.”

“The bank’s conflict-of-interest policy will appropriately limit his activities upon his departure,” Harrison said.

Read the article here


Anonymous said...

President Obama's appointment of Summers as his chief economic advisor made the administration's overall response to the crisis predictable. (Robert Kuttner gives a detailed explanation of the policies that Rubin's protégés championed in his new book, A Presidency in Peril.) The response would follow the disastrous Japanese model that has harmed their economy and damaged their integrity. The dominant characteristics can be summarized quickly: (1) the government would act for the benefit of the largest financial firms and their CEOs, even when they directed massive frauds, by (2) engineering a cover up of the banks' losses and the CEO's misconduct; (3) the administration would use the fictional reports generated to conduct the cover up to declare victory (due to their brilliance); and (4) the same strategy would impair the recovery. (For more on the cover up, see here and here.)

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