Sharing confidential information within a company about clients is surely a form of insider trading. But somehow Goldman Sachs doesn't pay the penalty of a Rajat Gupta, for instance. We need a definition of fraud that excludes the words now used to describe Goldman activity like huddling, tipping clients, fleecing, spinning, violating, taking risks, sharing asymmetrical information, etc.
Such useless euphemisms now serve to define the justice system and make a mockery of justice and government power.
The words we want to see are subpoenas, indictments, prosecutions and jail time for fraud and felony committed by Goldman Sachs.
You can read the Administrative Proceeding here and the SEC memo regarding Goldman Sachs's latest fraud here.
Richard (RJ) Eskow tells it best at HuffPost Business:
The Latest SEC/Goldman Sachs Sweetheart Deal Is the Worst One YetRead the complete article here
By Richard (RJ) Eskow - HuffPost Business
The sweetheart deals just keep coming. Lawbreakers at one bank after another are let off the hook as their shareholders write a check. And then they go out and repeat the illegal behavior they promised not to do in the last settlement.
It shouldn't be surprising that this keeps happening over at the SEC -- especially as long as Robert Khuzami continues to serve as Director of the Commission's Division of Enforcement.
But while each of these deals has been shameful, destructive, and outrageous, the $22 million agreement with Goldman Sachs which the SEC announced today -- another one in which the guilty party "neither confirms nor denies wrongdoing" -- looks like the worst one yet.
The SEC has the power to shut Goldman Sachs down for what it did, and the offenses it describes are felonies. But they just gave out another slap on the wrist -- no, make that a pat on the wrist -- with today's announcement.
The Worst Thing
It's not just the fact that the SEC continues to ignore the public's outrage by letting bankers off scot-free. And it's not just that this kind of irresponsible behavior ensures that the lawbreaking will continue. Its not just that crooked bank executives are allowed to "neither admit nor deny wrongdoing."
It's not even the fact that this time around the SEC has worded its announcement in a clumsy attempt to obscure the criminal behavior of Goldman's employees -- although that's one of this agreement's worst features.