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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

Tuesday, August 2, 2011

Goldman Sachs--Wreaking Havoc in Government

According to an article in DealBook by Andrew Ross Sorkin, Mr. Adam Glass, who is known as an honest, hard-working and ethical man and who is now a senior lawyer at the SEC, was also connected with the Abacus deal that John Paulson cooked up with Goldman Sachs, a deal which lead to the civil fraud suit that brought charges against GS. In other words, Mr. Glass helped create securities which brought about the financial meltdown in 2008. Now he is a member of the SEC organization that has been given the job of writing new rules for derivatives!

There is, at the very least, a conflict of interest on Glass's part and because of what we know about other people's conflicts of interest, namely, Rubin, H. Paulson, Summers, Gensler, etc., we should all be very wary of having people who believe in the deregulation of derivatives and who support the shadow banking system; and make sure not to put them in positions of power where the welfare of the citizens of the US should be the main concern, not the ginormous wealth of the bankers.

As for the fox being in the henhouse to improve and correct the system, I say: No, No, NO, you misunderstand: the fox is in the henhouse not to guard the interests of the hens; he eats them, destroys them, annihilates them. And that is what the revolving door has done for the financial system of the USA. There should be no appearance of conflict as well as no actual conflict of interest.

Also consider, as one commenter has, that there have been no convictions brought by the SEC against bank executives that caused the financial meltdown. One reason for no criminal convictions could be the conflicts of interest at the SEC.

Revolving Door at S.E.C. Is Hurdle to Crisis Cleanup
By Andrew Ross Sorkin - DealBook

A senior lawyer for the Securities and Exchange Commission recently took center stage in a major case involving a controversial mortgage security sold by Goldman Sachs.

There was just one slight twist in the legal proceedings. The S.E.C. lawyer was not the prosecutor taking the deposition. He was the witness.

This summer, Adam Glass — who joined the agency two years ago and is now co-chief counsel in charge of helping write the rules for the complex financial instruments known as derivatives — testified in a deposition about Goldman’s Abacus, a mortgage investment that the government argues was designed to fail.

It turns out that Mr. Glass has a unique perspective on Wall Street exotica. Before working on the financial crisis cleanup, he helped create the opaque securities that contributed to the mess.

For many years, Mr. Glass served as the outside counsel to Paulson & Company, the giant New York hedge fund firm run by John Paulson, who made billions betting against the housing market. And yes, Mr. Glass, in that role, signed off on Abacus, which was created specifically for the hedge fund to short subprime mortgages. Mr. Paulson handpicked some of the underlying investments in the derivative.

The government, in its complaint, claimed that Goldman had “misstated and omitted key facts regarding” Abacus, including disclosing Mr. Paulson’s role in its creation. The firm paid $550 million to settle the case, without admitting or denying guilt. Mr. Paulson was never accused of any wrongdoing.

Mr. Glass’s recent deposition was for a separate S.E.C. case against Fabrice Tourre, the young Goldman trader who had developed and marketed Abacus to investors. Mr. Tourre, 31, has denied the accusations.

The revelation of Mr. Glass’s involvement in the Abacus deal could undermine the S.E.C.’s case — or at least prove to be a distracting embarrassment.

Perhaps more important, his role once again raises questions about the revolving door between Washington and Wall Street at a time when public distrust about the agency and its lack of enforcement action against the culprits of the crisis is running high.

“There are a lot of talented people out there you could hire who weren’t necessarily part of the problem,” said Mary Kreiner Ramirez, a professor at Washburn University School of Law. “If he was involved in Abacus, how is he supposed to police it?”

It is a common question as the government increasingly looks to fill its ranks with regulatory officials proficient in the language of Wall Street. Robert S. Khuzami, the S.E.C.’s director of enforcement, was previously the general counsel of Deutsche Bank. The agency tapped Eileen Rominger, the former global chief investment officer at Goldman Sachs Asset Management, as its director of investment management.

“The revolving door is such a dominant fact about the S.E.C.’s culture,” said John C. Coffee Jr., a Columbia Law School professor. “You get people who go to Washington for one to three years and then go back to Wall Street.”

Read the entire article here

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Warning: the following video uses violent images and coarse language:

You can view the video here


Anonymous said...


You Want to Create Jobs? Here's How (August 2, 2011)

It's a great place to be a global corporation or billionaire, because they can buy special favors that exempt them from the same burdens imposed on small business.

The U.S. economy is hobbled by two systemic burdens: sickcare and the insolvent "too big to fail" banking system. Both act as enormous taxes on the productive citizenry.

You want to create jobs? Then stop diddling around with cargo-cult Keynesian "stimulus" which just props up the least efficient and most parasitic elements of the economy: the banking sector, Wall Street, cartels and fiefdoms. Keynesian stimulus is simply another facet of the Wall Street/bank/corporatocracy Status Quo: we've already squandered trillions in "stimulus" government spending, and very little has trickled down to the businesses which might actually hire someone in the U.S. It is a failed policy precisely because it is entirely Status Quo.
A. It will wipe out the 6 "too big to fail" banks which are acting as a dead weight on the economy and on its political governance. It's too bad the Keynesians are too busy painting radio dials on rocks and chanting tired incantations to realize that the only step that will make a difference in jobs is destroying the "too big to fail" banks, and thus destroying their grip on the nation's throat.

Replace them with 50 smaller banks which are precluded from buying each other--or 250 banks. Re-enact Glass-Steagal to separate depository and investment banks--recall the bill was less than 10 pages long. Once the TBTF banks are gone, there won't be enough concentrated wealth and capital to so easily subvert the political system.

Anonymous said...

Takes two to tango aka (see no evil, hear no evil, speak no evil)...more the merrier..for them!

Obama Still Wall Street's Honey ... Raises More (As Both Raw Amount And Percentage) From Wall Street Than In 2008

Obama has even added new Wall Streeters who did not work for him in 2008, including former Goldman Sachs CEO Jon Corzine, Evercore Partners executive Charles Myers, Greenstreet Real Estate Partners CEO Steven Green, and Azita Raji, a former investment banker for JPMorgan.

Anonymous said...

Ron Paul Sounds Alarm on “Disturbing” Super Congress

Congressman Ron Paul warns that the all-powerful new “Super Congress” created by the vote on the debt ceiling will be used to fast-track tax increases while concentrating more power over the nation’s purse strings in the hands of the Washington elite.

Anonymous said...

Their cash is stacked high..we have some distance from when the actual crime occurred timewise...and now the rest of us can deal with carnage...

Today Was Ugly For The Stock Market

These indicators are potentially symptomatic of the onset of an
economic depression and an imminent acceleration in inflation. To be
sure, I have always believed that the second great depression started
in 2008 and the trillions thrown at the system (with most of it
gushing into the pockets of the banking and political elite) created
the brief illusion of economic stability and growth. But really all
that occurred was the massive transfer of banking system debt onto the
public via people like Hank Paulson, Tim Geithner, Ben Bernanke and,
likely unwittingly, Obama.

Anonymous said...

Miss a mortgage payment and you're the scourge of the dries up..etc etc...have a part in a corrupt process where people lose billions and you're ready to play

Ex-Directors of Failed Firms Have Little to Fear

Do the former directors of the institutions that collapsed during the financial crisis have anything to worry about? If the experience of Enron is any example, the answer is a resounding no.

A look back at the career paths of onetime Enron directors indicates that the former directors of Bear Stearns and Lehman Brothers will continue their prominent careers.

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