Fraud* 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
The following video from the Faith and Finance (cordei) website is followed by their statement about the SEC who is investigating firms, including Goldman Sachs, concerning the subprime mortgage meltdown. In the video, Blankfein maintains that the collapse in the housing market surprised Goldman Sachs. GS shorted sub-primes so they must have suspected the market was going to melt down. Not only that, but GS bundled up the sub-primes into CDOs that became junk over a short period of time. In any case, my trust in GS is zero--I permanently shut down my Facebook account.
Goldman Sachs Subprime Mortgage Meltdown and Financial Crisis on Faith and Finance website
Goldman Sachs Subprime Mortgage Meltdown and Financial Crisis The investigation, being conducted with the Securities and Exchange Commission, comes as Wall Street and major banks around the world are attracting scrutiny from regulators who are looking at transactions that occurred in the run-up to the subprime mortgage meltdown and financial crisis. The source said the investigation includes mortgage-bond deals, that it is in an early stage, and that it might not necessarily lead to criminal charges against all of the firms. The person spoke anonymously because the probe is ongoing. Separately, New York authorities opened an investigation into whether eight banks, including Citigroup, Goldman Sachs and Morgan Stanley, misled rating agencies with regard to mortgage-derivative deals, a separate source familiar with the matter said on Thursday. New York Attorney General Andrew Cuomo’s office served subpoenas on Wednesday to four US banks and four European lenders, the source said. Cuomo is also targeting Credit Agricole SA, Credit Suisse Groupe AG, Deutsche Bank, UBS and Merrill Lynch, now owned by Bank of America Corp, the second source said.
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