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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

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Wednesday, January 9, 2013

Goldman Sachs Re-Writes Its History

There has been a lot of forgetting and re-writing of Goldman Sachs history.  A real gem can be found here.  The following three paragraphs excerpted below is a case in point.  These three paragraphs have been  re-written the way it should read if Goldman's true worth were stated.  All the re-written parts are bracketed and in red.

Stock Picks:  Goldman Sachs is in a class above the rest
By Ian Shaffer - The Gazette

Following the 2008 financial crisis and the bankruptcy of Lehman Brothers, Goldman converted from an investment bank into a bank holding company in order to gain access to capital from the U.S. Federal Reserve. As a result, the company was required to limit the amount of leverage used on its balance sheet. This provision helped reduce the company’s risk profile, especially during the severe economic recession.

Shortly thereafter, Goldman received an important vote of confidence from famed investor Warren Buffett. Buffett’s company, Berkshire Hathaway (NYSE: BRK.A/BRK.B), invested $5 billion in Goldman at a critical moment in time. By taking a stake in the company while many of its competitors were struggling to survive, Buffett helped bolster investment sentiment regarding Goldman’s long-term prospects.

Today, Goldman Sachs is once again a leading financial services institution. The firm generates revenue and income from four main divisions, including Investment Banking, Institutional Client Services, Investing and Lending, and Investment Management. Institutional Client Services accounted for 55 per cent of the company’s earnings in 2012 and is the company’s largest division.
Read the entire article here

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Revised edition to include some truths:  that, indeed, Goldman Sachs is Above the Law
Following the 2008 financial crisis (in which Goldman Sachs played a key role in creating toxic assets and selling them to unsuspecting pension and savings funds) and the bankruptcy of Lehman Brothers, Goldman converted from an investment bank into a bank holding company in order to gain access to capital from the U.S. Federal Reserve (and in order to gain capital and access to borrowing billions from the Fed discount window, estimated at $800 billion, and in order to obtain from the government the implicit guarantee that it would always be bailed out whenever it got into trouble). As a result, the company was required to limit the amount of leverage used on its balance sheet (When did Goldman ever have to limit any leverage? Sometimes it borrowed in a 25 to 1 ratio). This provision helped reduce the company’s risk profile, especially during the severe economic recession. (The real risk was put onto the American taxpayer who bailed Goldman out and onto the public which bought its toxic MBS assets. The only reason that risk was reduced was because Goldman was rescued by the Federal Reserve. Since then, risk is no longer a concern as the government will always bail the banks out. Goldman still uses its money to hedge or bet whenever such hedging and gambling assures them good returns.)

Shortly thereafter, Goldman received an important vote of confidence from famed investor Warren Buffett. Buffett’s company, Berkshire Hathaway (NYSE: BRK.A/BRK.B), invested $5 billion in Goldman at a critical moment (Yes, Goldman was a zombie bank just before Buffett lent it $5 billion.  Buffet received a good 10% return on his investment;  the public did not.). By taking a stake in the company while many of its competitors were struggling to survive, Buffett helped bolster investment sentiment (Buffett was worried about his own skin what with his Moody's agency having rated the toxic assets of banks as AAA when they were junk) regarding Goldman’s long-term prospects. (Goldman's long-term prospects look great—it has renewed its proprietary trading, it has enough people in government to control the making of rules under Dodd-Frank and it has millions with which to lobby politicians to get any rules or regulations watered down to its satisfaction).

Today, Goldman Sachs is once again a leading financial services institution. (With all that help from the Federal Reserve, the Treasury, the Buffetts of the world and the politicians, of course, Goldman is doing just fine now that all the laws regarding fraud have been erased from the DoJ rule book.) The firm generates revenue and income from four main divisions, including Investment Banking, Institutional Client Services, Investing and Lending, and Investment Management. Institutional Client Services accounted for 55 per cent of the company’s earnings in 2012 and is the company’s largest division. (Don't forget that Goldman has a new proprietary trading arm that used to return billions in salaries, bonuses and stock. Goldman treats its clients as muppets—with little or no regard. If Goldman can make a profit on clients, it will do so. During the crisis, Goldman Sachs used Accounting Control Fraud to bolster its balance sheet so that the executives could use the profits to pay themselves huge bonuses. All it had to do was pay fines for all its frauds.  What a scam!)

You can read the original article here but I wouldn't bother to do so 
You may want to read some background information on Goldman here

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