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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

Thursday, January 17, 2013

Want to Know What Corruption Looks Like?--Goldman Sachs

We on this blog know that the Department of Justice has been absent in prosecuting criminal cases that arose from the fraud committed by banks like Goldman Sachs who brought us the Great Recession.  Goldman made billions by securitizing sub-prime mortgages and selling them to pension funds and savings funds.  Goldman knew that those CDOs were bunkum and that they would help crash the mortgage market so they bet against the mortgage market and made billions more.

Goldman did not treat their Litton Servicing customers very kindly.  After the housing bubble burst, homeowners found themselves foreclosed on (sometimes illegally), or under water on their payments and not able to get loan modifications in order to stay in their homes.  There are hundreds and hundreds of complaints online written by Litton customers.

Before Goldman Sachs sold Litton, they had to promise not to forge any more documents (robo-signing) in order to bring about foreclosures .  They paid numerous small penalties that never even emptied petty cash.

Now Goldman has another deal going--another small cash payment to homeowners they mistreated and defrauded.  Goldman "agrees" to pay $135 million to borrowers and offers to pay $195 million of "relief" payments--a pittance when compared to the monumental damage they created.

Get this though:  because the investigation of foreclosure fraud "abuses" was so expensive and "slow-going", they abandoned that step and just paid a fine. 

The bank is so in bed with the regulators that they just "agree" to settle with money.  If the investigation is too hard and too expensive, they just pay another small fine.

That, folks, is the definition of corruption and you can see it whenever Goldman opens its wallet to pay.  The regulator and the regulated are one and the same.  The regulator agrees to let Goldman scrap what it does not like and Goldman just pays.  How cozy is that?

There should be criminal prosecutions for all the grief and horror that Goldman Sachs executives have visited upon homeowners and for the ruination of the mortgage business that made them billions in the process.  Shame!  Shame! and More Shame! to the predators and corrupters of the 21st Century:  Goldman Sachs.
Goldman Sachs, Morgan Stanley in $557 million foreclosure settlement
By James O'Toole - CNNMoney

NEW YORK (CNNMoney)  Goldman Sachs and Morgan Stanley have agreed to a $557 million settlement over alleged loan servicing and foreclosure abuses, the Federal Reserve announced Wednesday.
Under the deal, Morgan Stanley (MS, Fortune 500) will offer $97 million in direct cash payments to borrowers and $130 million worth of other relief, including loan modifications and the forgiveness of deficiency judgments. Goldman (GS, Fortune 500) will pay $135 million to borrowers and offer $195 million worth of relief.

The agreement covers more than 220,000 borrowers whose homes were in foreclosure in 2009 and 2010 and whose mortgages were serviced by the two banks' former subsidiaries: Goldman's Litton Loan Servicing and Morgan's Saxon Mortgage Services. It follows the $8.5 billion settlement announced last week by the Federal Reserve and the Office of the Comptroller of the Currency with 10 other banks over foreclosure issues. 

Read the article here


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