Maybe William K. Black is right when he says that Holder should resign if he doesn't go after some criminal prosecutions for bankers that created toxic CDOs and fraudulently made billions of dollars at the expense of the pubic.
And so we have two stories:
Allstate Sues Goldman Sachs Over Residential Mortgage-Backed Securities
By Karen Freifeld - BloombergGoldman Sachs Group Inc. (GS) was sued by Allstate Insurance Co. over the sale of more than $100 million worth of residential mortgage-backed securities that the insurer claims the bank itself called “junk” and “lemons.”
Allstate asked for damages including the lost market value of the securities, plus principal and interest payments in the complaint filed today in New York state Supreme Court in Manhattan.
The insurer, based in Northbrook, Illinois, has filed similar suits against JPMorgan Chase & Co. over $700 million of mortgage-backed securities the bank sold the insurer; Credit Suisse Group AG (CSGN) units for more than $231 million of the securities; Bank of America Corp.’s Merrill Lynch unit over some $167 million; Citigroup Inc. (C), over more than $200 million; and Deutsche Bank AG (DBK), over about $185 million. Allstate said the banks misrepresented underwriting standards, owner occupancy data and loan-to-value ratios.
Goldman knew these types of securities were “junk,” “dogs,” “crap” and “lemons,” according to today’s suit, which claims the words are Goldman’s own, recently revealed in governmental investigations, to describe them.
Michael Duvally, a spokesman for Goldman Sachs, declined to comment on the suit.
Goldman Sachs said in a quarterly filing last week that Allstate was among entities that “threatened to assert claims against the firm in connection with various mortgage-related offerings.”
Allstate purchased more than $123 million of the securities from April 2006 to March 2007 in reliance on Goldman’s misrepresentations and omissions, according to the complaint.
Read the full story here
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UPDATE 1 - CIFG sues Goldman, M&T over mortgage bonds
By Ben Berkowitz and Jonathan Stempel - Reuters
NEW YORK, Aug 17 (Reuters) - Bond insurer CIFG Assurance North America [CADEGA.UL] has sued Goldman Sachs Group (GS.N) and M&T Bank Corp (MTB.N) in New York state court, claiming they fraudulently convinced CIFG to insure $275 million in mortgage-backed securities.
CIFG is the latest bond insurer to sue Goldman over mortgage-backed securities that went bad, and the latest to make a similar claim -- that Goldman knowingly sold shaky mortgage bonds to get the risk off its books. ACA Financial Guaranty [ACAFG.UL] sued Goldman in January for similar reasons. [ID:nN06139329]
The suit, filed Tuesday, relates to securities from a portfolio of 6,204 loans, most of which CIFG said were made by M&T. Goldman subsequently packaged them and sold the GSAA Home Equity Trust 2007-S1 in February 2007; CIFG insured the Class A-1 certificates from the securitization.
CIFG said in the suit that it has reviewed a sample of loans from the portfolio that are in default and that most of them violate Goldman's own guidelines and M&T's representations and warranties on the loans.
"Consistent with the findings from this sample, the loans in the asset pool -- most of which should never have been made in the first place, let alone sold and packaged into a securitization -- have been defaulting at staggering rates, with delinquencies beginning prior to closing of the securitization and increasing rapidly thereafter," the suit said.
CIFG asked the court to order Goldman and M&T to compensate it for claims it may have to pay out in the hundreds of millions of dollars, as well as to buy back the nonperforming loans from the portfolio.
Goldman Sachs declined to comment. An M&T spokesman was not immediately available to comment. CIFG is currently in run-off, managing existing policies but not writing any new business. It is in the process of transferring much of its public finance portfolio to Assured Guaranty (AGO.N).
Read the entire story here
15 COMMENTS:
There are no disinterested parties...real punitive damages will never be realized.
See...
Rolling Stone Alleges Official Corruption?
Matt goes on to detail actual cases - including Lehman and Madoff - where allegations were made, investigated and then the records intentionally destroyed in apparent contravention of the law.
Our government wants us to "invest"? To believe in the markets? To believe that there's a cop, and that when someone does a bad thing they will be punished? When, as alleged....
In at least one case, according to Flynn, investigators at the SEC found their desire to investigate an influential bank thwarted by senior officials in the enforcement division – whose director turned around and accepted a lucrative job from the very same bank they had been prevented from investigating.
Really? You want me to invest eh? To trust the "system", the "government" and "the rules."
http://market-ticker.org/akcs-www?singlepost=2672893
Bill Black on Keiser Report: Stop The Looting & Start Prosecuting
We here at FedUpUSA just love Mr. Black. If we have any hope of our economy recovering, those responsible for the massive fraud and the looting of Americans must be prosecuted. It really is that simple.
http://www.swarmusa.com/vb4/showthread.php/6873-Bill-Black-on-Keiser-Report-Stop-The-Looting-amp-Start-Prosecuting
Unbelievable...where's the media on this?
That, it now appears, is exactly how the Securities and Exchange Commission has been treating the Wall Street criminals who cratered the global economy a few years back. For the past two decades, according to a whistle-blower at the SEC who recently came forward to Congress, the agency has been systematically destroying records of its preliminary investigations once they are closed. By whitewashing the files of some of the nation's worst financial criminals, the SEC has kept an entire generation of federal investigators in the dark about past inquiries into insider trading, fraud and market manipulation against companies like Goldman Sachs, Deutsche Bank and AIG. With a few strokes of the keyboard, the evidence gathered during thousands of investigations – "18,000 ... including Madoff," as one high-ranking SEC official put it during a panicked meeting about the destruction – has apparently disappeared forever into the wormhole of history.
http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-street-crimes-20110817
Is the whole country brain dead?
Is the SEC Covering Up Wall Street Crimes?
Flynn discovered a directive on the enforcement division's internal website ordering staff to destroy "any records obtained in connection" with closed MUIs. The directive appeared to violate federal law, which gives responsibility for maintaining and destroying all records to the National Archives and Records Administration. Over a decade earlier, in fact, the SEC had struck a deal with NARA stipulating that investigative records were to be maintained for 25 years – and that if any files were to be destroyed after that, the shredding was to be done by NARA, not the SEC.
But Flynn soon learned that the records for thousands of preliminary investigations no longer existed. In his letter to Congress, Flynn estimates that the practice of destroying MUIs had begun as early as 1993, and has resulted in at least 9,000 case files being destroyed. For all the thousands of tips that had come in to the SEC, and the thousands of interviews that had been conducted by the agency's staff, all that remained were a few perfunctory lines for each case. The mountains of evidence gathered were no longer in existence.
hat request sparked a worried response from Paul Wester, NARA's director of modern records. On July 29th, 2010, Wester sent a letter to Barry Walters, who oversees document requests for the SEC. "We recently learned from Darcy Flynn... that for the past 17 years the SEC has been destroying closed Matters Under Inquiry files," Wester wrote. "If you confirm that federal records have been destroyed improperly, please ensure that no further such disposals take place and provide us with a written report within 30 days."
Wester copied the letter to Adam Storch, a former Goldman Sachs executive who less than a year earlier had been appointed as managing executive of the SEC's enforcement division. Storch's appointment was not without controversy. "I'm not sure what's scarier," Daniel Indiviglio of The Atlantic observed, "that this guy worked at an investment bank that many believe has questionable ethics and too cozy a Washington connection, or that he's just 29." In any case, Storch reacted to the NARA letter the way the SEC often does – by circling the wagons and straining to find a way to blow off the problem without admitting anything.
http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-street-crimes-20110817?page=4
There has been no follow through by anyone in government or the judiciary..this article gnaws on your insides.
Another tap dance or real thing?
these people at the sec in the years documents were destroyed should forfeit their pay with damages and go to jail...
Goodbye Mary Schapiro: Grassley Asks SEC To Account For Illegal Document Destruction
Flashing headlines:
GRASSLEY ASKS SEC TO ACCOUNT FOR ALLEGED DOCUMENT DESTRUCTION
SENATE'S GRASSLEY MAKES REQUEST IN LETTER TO SEC'S SCHAPIRO
GRASSLEY: WHISTLEBLOWER CITED `UNLAWFUL DESTRUCTION' OF RECORDS
GRASSLEY CITES ALLEGATIONS IN LETTER FROM SEC WHISTLEBLOWER
http://www.zerohedge.com/news/goodbye-mary-schapiro-grassley-asks-sec-account-illegal-document-destruction
All anyone needs to do to get information on which to base an investigation of any of the parties who participated in the financial meltdown is the same thing that Khuzami did: send a letter to the whole organization asking for whistle blowers. Those are the only people who will come forward, as everyone else, including the executives and the managers, is implicated by his actions (or inaction).
See what happens when your not on the right team...
Dick Fuld gave back squat..how many others on the tbtf team got anything clawed back?
UM players could face bankruptcy clawback suits for Ponzi gifts
http://www.sun-sentinel.com/sports/um-hurricanes/fl-university-miami-players-gifts-20110817,0,1740619.story
systems broke and a joke!!!!
Maybe the US should sub contract out the justice department,SEC,CFTC,FINRA to the Philippines instead of just call centers?..it might help catch tbtf and reduce unnecessary high end phony regulatory jobs,,,?
Aquino Invokes Eliot Ness in Corruption War
Philippine President Benigno Aquino has ordered his guards to protect officials hunting tax evaders in an anti-corruption drive aimed at drawing investors to his country, which he says offers a “far greater” return than its Southeast Asian neighbors.
“We’re going after very entrenched and very vested interests,” he said in an interview in the presidential palace in Manila. Al Capone “got caught on tax evasion, not murder, not corruption, by not paying his taxes, that amazed me,” said Aquino, who recalled being inspired by Capone’s nemesis Eliot Ness as portrayed in the 1959 series The Untouchables.
http://www.bloomberg.com/news/2011-08-17/aquino-invokes-eliot-ness-in-philippine-corruption-war-to-lure-investors.html
What Do You Think?
Do you think the SEC and the Government are covering up or ignoring massive Wall Street Crime?
scroll down on right
vote here: http://usawatchdog.com/zero-interest-rates-lock-in-inflation/
it doesn't matter how many lawsuits get filed, the fed will simply allow them as a bank holding company to borrow from the discount window and relend to the government at a spread. The result will be a collapse in the USD and in middle class savings purchasing power. GS by playing the yield curve with its co-conspirator the fed will use the profits to pay bonuses, legal fees and settlements. And so there goes what was once a great republic.
Yes..its like the structure is hollow and they skim the proceeds off the new credit from the top.
What else do they censor?
Corporate Media Admit They Censor Ron Paul
http://www.ritholtz.com/blog/2011/08/corporate-media-we-censor-candidates-who-challenge-status-quo/
The Empire Strikes Out
http://www.youtube.com/watch?v=2_OBBmc1iH4&feature=youtube_gdata
Goldman Sachs VP Changed His Name, Now Advances Goldman Lobbying Interests As A Top Staffer To Darrell Issa
Thursday 18 August 2011
Has Rep. Darrell Issa (R-CA) turned the House Oversight Committee into a bank lobbying firm with the power to subpoena and pressure government regulators? ThinkProgress has found that a Goldman Sachs vice president changed his name, then quietly went to work for Issa to coordinate his effort to thwart regulations that affect Goldman Sachs’ bottom line.
http://www.truth-out.org/goldman-sachs-vp-changed-his-name-now-advances-goldman-lobbying-interests-top-staffer-darrell-issa/1
Thank you for all the links!
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