At the MFI-Miami website, Steve Dibert (in an article entitled FDIC Sues Banks and Depositors Over MBS Fraud) has posted three Scribd. documents of the FDIC lawsuits against various companies including Goldman Sachs. The plaintiff is Guaranty Bank which collapsed in 2009. Reading the documents is like taking a fast trip through the financial system while it was hellbent on creating the worst financial crisis since the Great Depression.
Thank goodness for the Securities Act of 1933 under which some redress of grievances can be resolved. (The banks and government inadvertently left some laws on the books during their spasm of deregulation over the past few years.) We find the usual suspects: Bear Stearns, GMAC, Deutche Bank, JP Morgan Chase and, of course, Goldman Sachs.
The accusations include material and untrue or misleading statements about the security certificates, about LTVs and about other liens. Appraisals were biased; underwriting statements were untrue and misleading and underwriting guidelines were disregarded; ratings of certificates and statements of sale were untrue and misleading amongst other untruths and disregard for the law.
The plaintiffs request a jury trial; however, as with other lawsuits, Goldman Sachs will be fined and told to "sin no more." Goldman will not have to admit to wrongdoing and will carry on. Such is justice today.
See the lawsuit documents and article here
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