Goldman Sachs, ACA, John Paulson and Abacus

Business Insider has an article written by Courtney Comstock that relates the main items of the fraud committed by Goldman Sachs that required Goldman to pay the SEC $550 million in fines.  We believe that Goldman Sachs should have faced an in-depth investigation for criminal wrongdoing but the DoJ and the President decided not to pursue any criminal bankers.  Instead, they chose to prop up the predatory banks with a bailout and to pursue only civil charges against banks rather than bankers and to pretend nothing criminal took place.

The financial crisis was caused by criminal behavior that resulted in an extreme transfer of wealth from pensions and savings of ordinary people into the already full coffers of the bankers and other elites who brought us the financial crisis in 2008.

The article includes illustrative photos and links to original documents.  A sample frame is shown below:

The Complete Story of What Really Happened Between Goldman, Paulson, ACA, IKB, and ABN
By Courtney Comstock - Business Insider
. . . .
 A Paulson employee explained the trade in an email in January 2007. 

Paolo Pelligrini, formerly of Paulson & Co

 “It is true that the market is not pricing the subprime RMBS wipeout scenario. In my opinion this situation is due to the fact that rating agencies, CDO managers and underwriters have all the incentives to keep the game going, while ‘real money’ investors have neither the analytical tools nor the institutional framework to take action before the losses that one could anticipate based [on] the ‘news’ available everywhere are actually realized.” 

Pg. 6 of the SEC filing against Goldman.

Read the whole article here