Goldman Sachs charged with fraud by SEC

Comments (84)
leekhat wrote:

Use capital letters when writing about captialism

Apr 16, 2010 11:04am EDT  --  Report as abuse
Gotthardbahn wrote:

Goldie takes the hit! CDOs are the devil’s handiwork, invented by Drexel Burnham (remember them?) back in the 1980s. Does anyone really understand how CDOs work? Be honest now.

Apr 16, 2010 11:09am EDT  --  Report as abuse
danhux wrote:

So now the government spends millions of dollars we don’t have sueing Goldman Sachs, making them pay a fine, this all will finish up in about 4 or 5 years, meanwhile the high ranking guys at GS still make millions and millions a year.

Apr 16, 2010 11:11am EDT  --  Report as abuse

WOW – This is interesting .. Do we really need anything like Investment Bank..

Apr 16, 2010 11:13am EDT  --  Report as abuse
pearceh wrote:

The chickens are coming home to roost. There will be more.

Apr 16, 2010 11:13am EDT  --  Report as abuse
fred5407 wrote:

Seems like locking the barn door after somebody stole all the livestock. The people who should have known better just did it anyhow. I expect we will see many more law suits and maybe we better build another prison.

Apr 16, 2010 11:16am EDT  --  Report as abuse
lumina wrote:

How did the SEC find this out? I assume this is a form of insider trading. How would/will it be possible to prevent this form of trading in the future? – these CDO’s can get repackaged and spiral around causing eventual havoc – anyone any thoughts on this?

Apr 16, 2010 11:23am EDT  --  Report as abuse
LosGatosGuy wrote:

The world melts down and Goldman Sachs has its best year ever? Follow the money–throw the bums in jail with Madoff. They got away with Penn Central, with Robert Maxwell–throw the book at the whole corrupt, criminal enterprise.

Apr 16, 2010 11:24am EDT  --  Report as abuse
Johnny99 wrote:

Why aren’t Blankfein and his cohorts facing criminal charges and being hauled off to jail? This looks like outright criminal fraud, not a lame civil action. It sounds like Goldman has designated one VP to “take the hit” rather than giving up the dozens who actually committed these crimes. Blaming one guy for all this and letting Blankfein walk sounds like a cover-up. Then again, Goldman does have friends in high places in Washington, doesn’t it, like it’s ex-employee, Treasury Sec. Geithner?

Apr 16, 2010 11:25am EDT  --  Report as abuse
saporito3 wrote:

NOW THAT’S what I like our government do!

Long time in coming – however, the SEC must take charge over these huge financial institutions that claim they are doing “God’s Work” but in reality, they are doing the DEVIL’s work!!!!!!!!!!!

Thomas Saporito
Jupiter, Florida

Apr 16, 2010 11:27am EDT  --  Report as abuse
beglad wrote:

These guys, corporate and individual, had a fiduciary responsibility to disclose all material information about these investments. They breached that responsibility, big time, and if a handful of these greedy b___ards end up with their a__es in jail maybe it will be a deterrent to this kind of behavior in the future.

Apr 16, 2010 11:30am EDT  --  Report as abuse
Easynet23 wrote:

And for this the US Government took down AIG so they could funnel cash to GS? Basically the US did not want GS to lose any money so they force AIG to take money that was immediately given to GS to keep them whole. On the other side of the trade GS was screwing everybody else. The US should have just let AIG file chapter 11. We’d still be in a mess but the infrastructure would have been rebuild on solid ground not on the artificial turf of government favoritism and a complex mosaic of regulatory loopholes for the politician’s friends and contributors. What the heck we elected ‘em.

Apr 16, 2010 11:31am EDT  --  Report as abuse
davidirby wrote:

About time! This is one reason why I worked for and voted Obama/Democratic. But a lot more on Wall Street should go to jail and “real politics” says most won’t, just as War Criminal Bush and his minions probably won’t. But at least this is a step in the right direction. Go Eric Holder! Go Obama!

P.S. And go to work for the Dems in November everybody! We need to protect the gains we made in 2008 from the Teabaggers and the “Party of No”.

Apr 16, 2010 11:32am EDT  --  Report as abuse
hoodypls wrote:

With all the money they “earned” last year due to their “performance”, they will be able to hire the best legal minds, and we all know what that means. Also, see Propublica article “The Magnetar Trade”. This is what can happen when free enterprise runs rampant.

Apr 16, 2010 11:36am EDT  --  Report as abuse
seamus603 wrote:

Put a $1.00 tax on every stock and financial instrument traded in the US….Use that money exclusively to lover the deficit and i will gladly forgive and forget!

Apr 16, 2010 11:36am EDT  --  Report as abuse
dailynews0727 wrote:

What’s Warren think about this!? When is someone going to charge the US Gov’t for frauding the People of it’s country out of the many billions of dollars it countinues to waste daily?? Better yet, when are We the People going to stand up to our selfish Gov’t.??? Tea party!

Apr 16, 2010 11:39am EDT  --  Report as abuse
lumina wrote:

Futther to my last comment I see that Former Paulson Fund mgr Pelligrini was SEC source but who will blow the needed whistles whilst in the job the next time out, – small investors out there remember to spead your chickens – and take profits – before the insiders eat your money….

Apr 16, 2010 11:41am EDT  --  Report as abuse
duane.k.dunn wrote:

Both parties enabled this mess over decades. In their minds it is more important to get re-elected than to do the right thing so the chances of real reform that really fixes this is not great. Wall Street is anything but capitalism and is anti American.

Apr 16, 2010 11:42am EDT  --  Report as abuse
happel wrote:

Guys,
wow, ppl are really jealous of goldman sachs making billions and its employees making millions… so why should they go to jail? what does this “looks like fraud” mean? do you guys understand what happened?
i would imagine on a professional site like reuters there will be a more educated crowd that would have something more educated to say then “throw them all in jail”… you guys sound like rednecks from us today. sorry for offense but you do.

Apr 16, 2010 11:42am EDT  --  Report as abuse
GetpIaning wrote:

People in the financial profession have known about Goldman’s unethical methods for years. What surprises me now is that another fraud investigation into this bunch of parasites is actually news.

Apr 16, 2010 11:43am EDT  --  Report as abuse
feudi wrote:

Blankfein, Dimon, Rubin, Greenspan – they should all be wearing stripes like Bernie Madoff. They did the same crime as Madoff, only a world-wide scale.

Apr 16, 2010 11:43am EDT  --  Report as abuse
madest wrote:

We can all breathe a sigh of relief at the eventual demise of this awful company. One can only hope the principal owners will end up bankrupt and in jail.

Apr 16, 2010 11:45am EDT  --  Report as abuse
madest wrote:

We can all breathe a sigh of relief at the eventual demise of this awful company. One can only hope the principal owners will end up bankrupt and in jail.

Apr 16, 2010 11:45am EDT  --  Report as abuse
KNA180 wrote:

A Cockroach! Whew! I’m sure that the SEC has determined that there’s only ONE cockroach on Wall Street and that very soon we will be able to put this all behind us.

Apr 16, 2010 11:47am EDT  --  Report as abuse
AlephNaught wrote:

It hurts to see how people fail to understand the importance of investment banks and structured products such as CDO’s. While much blame is placed on the complexity seemingly mysterious workings of such products, it is by financial innovation that the world is what it has been. It is also critical to note that structurers of products do so in isolation from clients such as hedge funds who may have gone short on the underlying instrument. It is understandable, but not forgivable that the regulators, journalists and general public view investment banks and investment bankers as criminals without having as much as a grain of knowledge in the inner working of a bank.

Apr 16, 2010 11:51am EDT  --  Report as abuse
Zeeke wrote:

Here we go again the SEC reaches to a new low. They are so desperate to wash by the Madoff errors, they will now fabricate criminal causes to get their names back in the news. Remember RICO, the SEC accused everyone at that time of securities racketeering, why because that made headlines.

Apr 16, 2010 11:54am EDT  --  Report as abuse
QuizmasterAu wrote:

Is it government being evil and vindictive toward Paulson?

Apr 16, 2010 11:57am EDT  --  Report as abuse
feudi wrote:

AlephNaught: I haven’t read such nonsense in all my life! “Financial innovation” does not mean a license to set up a worldwide pyramid scheme deliberately designed to hide true risk levels. How exactly do investment schemes ala CDO’s, off balance sheet transactions, etc. add anything but air to a nation’s economy?

Apr 16, 2010 12:01pm EDT  --  Report as abuse
Astonished wrote:

If I were Jeff Skilling I would be back in court trying to get my sentence reduced. He brought one company down not the whole economy! Goldman Sachs executives will probably never see the inside of a jail.

Apr 16, 2010 12:01pm EDT  --  Report as abuse
kaching0363 wrote:

While everyone is having fun kicking Golman while they’re down, I’d like to know where the SEC was at the time.
It was their job to protect people from this type of fraud, and they just closed ther eyes and pretended that they knew nothing.
The SEC is just as responsible as Goldman, yet they are portyaying themselves as the White Knight coming in to save the day.
Yeah Right!

Apr 16, 2010 12:07pm EDT  --  Report as abuse
Fishrl wrote:

Bad Goldman! Time Out! Go sit on the naughty rug for 5 minutes and say you’re sorry.

Apr 16, 2010 12:07pm EDT  --  Report as abuse
eeriemoon wrote:

The SEC is doing Gods work.

Apr 16, 2010 12:08pm EDT  --  Report as abuse
QuizmasterAu wrote:

Cheap political theatre from The Marxist administration in front of the vote on regulations next week. Thugacracy in action. Don’t forget Trumpka and his planned march on Wall Street all Marxist inspired activities. Market not governments.

Apr 16, 2010 12:09pm EDT  --  Report as abuse
MrNowick wrote:

Thieves are thieves, whether they rob a store, mug an old lady, or mis-represent an investment opportunity to pension funds that represent the hard-earned savings of tens of thousands of hard-working American families. If Goldmans, subject to due judicial process, are shown to be guilty, then they too are a bunch thieves, but far more efficient than a street mugger. If they are proved innocent, then god bless them.

Apr 16, 2010 12:11pm EDT  --  Report as abuse
WEREFEAT wrote:

The only reason the US isn’t up in arms about the FED and their link to world government is because the people don’t know what’s going on.
You are taught from a young age that the only thing there is to do in life is to get a job and work in a career.
It is becoming increasingly apparent that this idea really WAS slavery all the time.

Apr 16, 2010 12:12pm EDT  --  Report as abuse

I like that, Fishrl. You must have kids. lol

Apr 16, 2010 12:23pm EDT  --  Report as abuse
billyray1976 wrote:

This is good to see, but don’t over-estimate this compared to the rest of the financial companies. GS will probably pay a record fine which is chump cahnge to them and move on. I doubt one person will spend anytime in jail;.

Apr 16, 2010 12:25pm EDT  --  Report as abuse
freespazz wrote:

Goldman is a highly protected corporate entity. They are above the law. This “infraction” is actually a BIG deal but since Goldman is Goldman and the SEC have been basically ridiculed at in the past 2 years for ineptitude, they have to do “something”. This is a slap on the wrist and that VP, Fabrice Tourre, just takes the rap (maybe a few years in jail).

Time for the people to stand united against such corrupt entities. Goldman was behind much of the falling of the system. They bet against the securities they originally backed/sold to other institutional investors then privately bet against them. They will fall like any corrupt to the core empire.

Apr 16, 2010 12:26pm EDT  --  Report as abuse
allanm051 wrote:

There is actually no way to prevent this from happening again. What Goldman did is already illegal, so new laws would not help. The best outcome will be a conviction for fraud and a large fine. But how will that do any good? Goldman made billions on this deal. A large fine will only hurt stockholders who are already suffering.

Outlawing CDOs altogether is probably the best way to avoid problems like this. But will Congress have the temerity to do this?

Apr 16, 2010 12:28pm EDT  --  Report as abuse
fireturtler wrote:

I find this very interesting after listening to this radio show on “This American Life” last weekend: http://www.thisamericanlife.org/radio-archives/episode/405/inside-job
It describes exactly what Goldman was doing with the CDOs but with another company as the perp.
This show explains how this scheme worked and how the intruments were set up to fail and then sold to unsuspecting customers of the investment banks while the short traders raked in billions (yes billions) by betting agains their own investment instruments.
We need new laws to provide regulator the authority to get at these schemes.
Go Obama! Don’t let these greedy b@$t@rds fleece their customers. That is not what business is supposed to be about.
Free markets only allow the thieves to hide in the market place. We need honest merchants and cops to make it work.

Apr 16, 2010 12:36pm EDT  --  Report as abuse
Voteoutincumb wrote:

lol, GS says they didn’t do amything wrong. I think we should believe them and drop it. LMAO. Didn’t profit? Where did those 10’s of billions come from then? All GS execs should be stipped of all assets, including those of all immediate family members. Includeing the ones who now run the Fed……$$ should be retured to taxpayers. Tar & feather them as well and make them walk down every main street in the US…..

Apr 16, 2010 12:45pm EDT  --  Report as abuse
MhD wrote:

A new algorithm for Wall Street. Improving society = value. Capital = realization. realization + value = profit.

True business leaders, it’s time to emerge!

Apr 16, 2010 12:48pm EDT  --  Report as abuse
willjones wrote:

Couple of weeks ago you had a story about hedge fund managers. They had a record breaking year for earnings. Tepper made 4 billion, Soros made 3.3 billion. This seems like a vicious circle, where these banks fail, we bail them out, and then the banks are fined for stealing. No wealth is created, it is the same money leaving the taxpayers hands, to the gov, to the bank, and then back to the gov.

Apr 16, 2010 12:48pm EDT  --  Report as abuse
Noobist_2612 wrote:

In no way was this solely responsible for so few, to conduct this fraud requires many strings to be pulled, and usually those at the top (who have the authority to call the shots). I have yet to see the full story of this news yet, hopefully more information will be exposed in the coming weeks.

Apr 16, 2010 12:59pm EDT  --  Report as abuse
moderaterisk wrote:

Regarding earlier comments:

The Paulson in the article is John Paulson, unrelated to the former Treasury Secretary Hank Paulson. See http://en.wikipedia.org/wiki/John_Paulson

Also, Geithner was never an employee of Goldman. http://en.wikipedia.org/wiki/Geithner

Apr 16, 2010 1:08pm EDT  --  Report as abuse
whtjoy34 wrote:

It is sad…,everybody knows during Bush era the Destruction of Financial and we are bullying by this rich and powerful people,it’s awful that we ordinary,especially individual investor’s have no control and the people that live in retirement funds are the victim.
I woke up this morning and praying that smart people with a good heart will be more successful and the rich spoiled brat will be punish.

Apr 16, 2010 1:12pm EDT  --  Report as abuse
danhux wrote:

Do we really need to let this bit of bad news wreck the whole weekend? Come on folks, buy some stock, make some money, borrow some money for a renovation, hire a contractor, put someone to work

Apr 16, 2010 1:14pm EDT  --  Report as abuse
sumnerg wrote:

Innocent until proven guilty. Equating Goldman (or JP Morgan) to Madoff sure is a stretch. Guess people crave simple hero/villain explanations for complex situations. Blame rather than think.

Apr 16, 2010 1:19pm EDT  --  Report as abuse
tdebat wrote:

About time ! They better see prison time a fine is not going to make me happy!

Apr 16, 2010 1:25pm EDT  --  Report as abuse
Popham wrote:

Gosh, Wall Street donated over $35 million
to the Obama campaign and now the strong
arm SEC, a division of the regime, is
stabbing them in the back?
This doesn’t look good Tim. What are you
going to do?

Apr 16, 2010 1:27pm EDT  --  Report as abuse
brea wrote:

here’s a copy of the complaint

http://sec.gov/litigation/complaints/2010/comp-pr2010-59.pdf

this CRIMINAL activity isn’t and wasn’t a “new” way to do business. it’s the condoned method of generating cash flow from new “vehicles”. one small example of the collusion and conspirital behavior that DEFINES these institutions.
have any doubts do some research on the secret meetings between george soros and other hedge funds, regarding shorting the euro, relative to the greek bond debacle!. these people are NOTHING BUT PARASITES ON THE FACE OF HUMANITY!
they contribute NOTHING to the welfare of society in general.
there’s not a pit deep enough to put all of them in! look at JPM now and the ever illustrious ceo jamie dimon. there’s a piece of work for you.

read john paulsons book “the greatest trade ever”, he was a nobody, total obscurity, till he engineered his trade w/ conspiracy aforethought! back to obscurity for that man.

GS=FED=SEC look at the list of employees,
spinoffs, collusion, conspiracy, outright theft! tell me you can’t see that sequence! you can do just a little dd on your own in 4 hours and put the mess together. you owe it to yourself, your neighbors and the entire country. put these people DOWN, their similar to rabid dogs!

Apr 16, 2010 1:29pm EDT  --  Report as abuse
barbhop wrote:

Funny how this was discovered and in the main street media at the right time Congress is trying to pass stiff regulations with the ability to close any company they feel is unstatinable. I think it is to fool the American people again!!!!!!!!

Apr 16, 2010 1:50pm EDT  --  Report as abuse
Raspo wrote:

So when are they going to go after Magnetar?? If any company and it’s officers deserve to go down in this it is them.

Apr 16, 2010 1:52pm EDT  --  Report as abuse
psy17 wrote:

this is sounding like GS acted as market maker for paulson and co.

Its just like when a trader calls up goldman or any other bank to buy an OTC option on a number of companies basically creating a synthetic index option. The bank after selling it to the original buyer would then try to sell it to other traders to hedge their trading position with original trader.

So i find it hard for the SEC to get a conviction. Secondly, if they do, then the entire OTC derivatives or OTC in general will need to close down. Because in OTC trades, its always one buyer who picks the equity, bond, commodity, etc. buys from the bank and if the bank wants to reduce risk will sell it to another.

Now I haven’t read the SEC complaint yet so I’m assuming the SEC is basing this charge on GS not having revealed that the person on the other side of the trade is Paulson and CO.

Apr 16, 2010 2:48pm EDT  --  Report as abuse
brea wrote:

this is just to rich. who ends up being charged? a 31 year old kid, who was 28 when he comitted the fraud ALL BY HIMSELF, w/ no supervision or guidance from upper management. yeah right!!

burn these criminals to the GROUND!!!

http://money.cnn.com/2010/04/16/news/companies/goldman_fabrice_tourre_sec/index.htm

Apr 16, 2010 2:56pm EDT  --  Report as abuse
QuizmasterAu wrote:

What about Fannie & Freddie.

Apr 16, 2010 2:59pm EDT  --  Report as abuse
Anonmucker wrote:

I can’t wait to hear the complaints by the tea paryiers and their ilk about government intrusion and abuse of the poor investment banks.

Apr 16, 2010 3:00pm EDT  --  Report as abuse
Zendo wrote:

Kiss my ass Goldman Sachs. That’s what you get for deceiving the easily deceivable people of America. I hope you go down. It’s nice to know that huge corporations like that are being held accountable for their fraudulent actions. Thanks to the SEC.

Apr 16, 2010 3:26pm EDT  --  Report as abuse
Zendo wrote:

Kiss my ass Goldman Sachs. That’s what you get for deceiving the easily deceivable people of America. I hope you go down. It’s nice to know that huge corporations like that are being held accountable for their fraudulent actions. Thanks to the SEC.

Apr 16, 2010 3:27pm EDT  --  Report as abuse
HBC wrote:

This is just the beginning.

Apr 16, 2010 3:33pm EDT  --  Report as abuse
Mediaman wrote:

Think of leveraged leverage, and you have the conceptual foundation for CDO’s.
CDO’s are a way to mutiply leverage to increase ROI.
If you really want nosebleed, think about Derivatives.

Apr 16, 2010 3:53pm EDT  --  Report as abuse
MrComments wrote:

To LosGatosGuy:

Geithner never worked for Goldman Sachs. You must be thinking of Bush’s Treasury Secretary, Hank Paulson, who was CEO of Goldman Sachs until he became Treasury Secretary….and it was under his watch that all this happened. It is also noted that Bush’s first Treasury Secretary, O’Neill, was fired by Bush when he said the enormous Bush Tax Cuts to the wealthy coupled with the upcoming Iraq War would bankrupt the country. He was fired for being honest and correct, and Bush hired Paulson….who “supervised” the mess……

Apr 16, 2010 4:27pm EDT  --  Report as abuse
breezinthru wrote:

Henry “Hank” Paulson is not related to the short-seller Paulson, however, he was the CEO of GS and later went on to be the beneficiary of tax payer bailouts in the auto industry and auto credit industry.

I’d like to see Reuters do some in depth reporting on that.

Maybe we can get Lloyd Blankfein and Henry Paulson in the same room at the same time on camera and get to the bottom of who is actually responsible.

I expect we would find out that they both are culpable and I expect we would find out a few things that they would like to keep quiet about if it got to be a tit for tat disclosure session.

Apr 16, 2010 4:33pm EDT  --  Report as abuse
Benny_Acosta wrote:

I noticed some comments defending Goldman. They say that most people don’t understand the complexity of the banking system and that it’s not fair to call them criminals.

I don’t agree. We live in the real world. And the net result of an action is the net result. It doesn’t matter what the explanation is, if the conduct causes the suffering of many on a large scale.

It should be evident to any professional in their field, when things look to be taking a turn for the worst. At these times it is incumbent upon the individual to make quality decisions with regards to their business practices. The banking industry’s defense is that “everybody’s doing it so we have to too.” It doesn’t work like that for the rest of us, so why should that work for the investment banking industry?

If the complexity is to blame then outlaw the complexity. But I rather suspect that it’s the behavior and intentions of these individuals that is to blame. And these things are already accounted for under the law.

Apr 16, 2010 4:57pm EDT  --  Report as abuse
terets wrote:

The problem with CDOs isn’t that they are evil. They are just a financial instrument, like a hammer is an instrument. A hammer is not evil, but when used improperly – that changes everything. CDOs need to be tranparent, investors need to know what went into them. The above is an example of what happens when they don’t.

But truth be told, it is not just Goldman and Paulson who are to blame. The buyers of these securities need to perform more due diligence. Reuters has another article about how the Europeans won’t be happy as RBS and IKB were the biggest investors in this security. They should be mad at themselves for not doing proper due diligence.

Apr 16, 2010 5:07pm EDT  --  Report as abuse
hsvkitty wrote:

If the complexities of the investment banks is such that no one can interpret the results (other then those profiting from bad trades like Paulson) then is anyone truly an informed investor? Even one who says they will take risks?

How is it possible that biggies who were “floundering” suddenly make billions and yet investors lose out? The wool is either being pulled over or the rug is pulled out from under… sounds like both and strict regulation should be in place.

(As long as the righteous right doesn’t come along and say that the governement is too involved/babying the public, etc)

Aren’t known bad trades for an investment firm simply illegal? And if so, why not? Why are heads not rolling rather then one scapegoat and tons of papers being boxed for investigation before they are ‘lost.’

Tch tch if they all walk away unscathed when a poor bank robber gets years for stealing a few measly bucks! (Even Martha took her hit for goodness sakes!)

Apr 16, 2010 5:30pm EDT  --  Report as abuse
lross wrote:

I suggest that the SEC use the services of Lizbeth Salander to take on this corporation.

Apr 16, 2010 5:37pm EDT  --  Report as abuse
Nuvolari wrote:

Uh, hello, Goldman? Is Pete Rose there?

Apr 16, 2010 5:56pm EDT  --  Report as abuse
JAW746 wrote:

OK. Worst case scenario – Executives are charged, tried, and found guilty. Their punishment? Bonus is cut to only $50 Million and they have to spend 2 weeks of Public Service at their favorite Tropical Vaction Spa Resort.

Apr 16, 2010 6:24pm EDT  --  Report as abuse
Hardcase.45 wrote:

Goldman Sachs should remember what the Bible tells us..Matt 19:24, ” AND AGAIN I SAY TO YOU, IT IS EASIER FOR A CAMEL TO GO THROUGH THE EYE OF A NEEDLE THAN FOR A RICH MAN TO ENTER THE KINGDOM OF GOD “

Apr 16, 2010 6:28pm EDT  --  Report as abuse
yeahyeahyeah wrote:

surprise! surprise!and all the rightious indignation that GS will now eschew. It dont take a genius to fathom out that downright ******* was going on. GB Wall Street and all who sail in her

Apr 16, 2010 6:34pm EDT  --  Report as abuse
Hardcase.45 wrote:

It’s no wonder real Americans are slowly amassing organized Militias..

Apr 16, 2010 6:36pm EDT  --  Report as abuse
Easynet23 wrote:

Goldman got a bail out via the Fed’s AIG conduit but yet when it comes to the investors that bought into ABACUS they are just collateral damage. Sounds like the market makers were chumming to me.

Apr 16, 2010 7:38pm EDT  --  Report as abuse
wrote:

Canada and other countries with highly regulated financial markets survived the market crash that the US created with relative ease; people should take that as an example. The US Banks and Financial Markets are a lawless bunch of criminals, making money for doing nothing, at the expense of the hard working Americans who put their trust in investments. It’s like the Old West, with fast shooters taking huge amount of control because there’s no sheriff to keep them from breaking the law. All the American regulatory agencies are either owned or controlled by the very banks and financial firms they’re supposed to police, so how can that not lead to corruption? Sure, profit potentials will fall, but only because regulation will stop those lawless hotshots from taking money out of the pockets of hard-working Americans. Let them make money legally and ethically for a change!

Apr 16, 2010 8:00pm EDT  --  Report as abuse

good. if it wasn’t for goldman sachs our economy would be in pretty good shape. why the hell did they need gov. cash? They’re an investment bank for rich peoples hedge funds. just shows who’s important in washington.

Apr 16, 2010 9:11pm EDT  --  Report as abuse
gramps wrote:

well,well,well..the great “vampire squid” is in the news again..how about that..

Apr 16, 2010 10:15pm EDT  --  Report as abuse
pwrbkg4 wrote:

It’s funny reading these comments, because none of you know what you’re talking about. Can someone tell me exactly what Goldman did that was fraudulent in this SEC case?

This is the way I see it, let me know if I’m wrong, but explain to me why you think I’m wrong!

1. Paulson wanted to bet against a pool of really crappy bonds 2. Goldman created these pool of bonds 3. IKB and ABN decided to take the other side of Paulson’s bet.

The bonds are rated BBB, so everyone knows that they are crappy. If anything, IKB and ABN are at fault for being idiots in taking the $1 billion exposure on these crappy bonds. If not, then it’s the rating agencies fault for rating the pools so high. Either way, I don’t see why Goldman should be blamed for anything… can you?

Apr 16, 2010 12:12am EDT  --  Report as abuse
hsvkitty wrote:

pwrbkg4, an investment firm is ’supposed’ to be making money for the investors by analyzing the market and being the best at doing so. At least that’s what mine does…

Where a firm knowingly makes bad trades, knowingingly loses money for an investor, knowingly misuses tax payers money, knowingly takes kickbacks, knowingly uses insider trading, knowingly offers bonuses that are outrageous when the investors are losing money, knowingly takes from Peter to pay Paul, or in this case… knowingly makes a portfolio of mortgage bonds which were a greater risk then they advised investors…. then it is being fraudulent.

Oh wait, they got away with it in the past and everybody was doing it? Or that’s the way it works now so it’s ok to keep doing it? Not only major players are hurt. Hopefully someone will have the backbone to whistleblow so the nightmare ends.

Right now it looks like a lot of investment firms are making a lot of money blowing smoke up the arses of investors. And without regulations it is going to continue.

Apr 17, 2010 1:20am EDT  --  Report as abuse
Kina wrote:

There will be a class action against GS regardless of the outcome of the SEC charges.

Their evidence is enough for a class action to be made. This would force GS to come to an out of court settlement or have it dragged through the mud for years.

Apr 17, 2010 3:07am EDT  --  Report as abuse
Demgar wrote:

“Does anyone really understand how CDOs work? Be honest now.” The people that do, are more scared of them than the people that don’t, quite frankly.

Most “Over The Counter” products are straight up, unmitigated bets. Most boil down to A pays B or B pays A as the result of some market observation. In a bet, someone always loses. You think Goldie is going to market you a bet they are likely to lose?

Goldman Sachs is a bookie first and foremost, remember that if you do business with them.

Apr 17, 2010 4:50am EDT  --  Report as abuse
SamClam wrote:

Goldman is about as corrupt as they come. Definitely a criminal action across many individuals. Put them all in jail and confiscate the company’s assets to return to the American tax payer.

They not only bet against their own clients, they bet against entire nations. They sold dodgy securities to Greece in 2000 and are now betting against them to allow an IMF take over. IMF already collecting Greek Lottery and Greek Airport Taxes.

Goldman Sachs, the FED & IMF all stink to hell.

Apr 17, 2010 7:27am EDT  --  Report as abuse
Thebedhead wrote:

This is only well-expected continuum to what has been disclosed earlier by the authors from the sector (take ‘How I Caused Credit Crunch’ by Tetsuya Ishikawa for instance where the material is well-evidenced and reader able to recognize characters involved. It takes time from SEC to react, albeit they do have what it takes. There must be limits in abusing individual and institutional investors, init?

Apr 17, 2010 8:45am EDT  --  Report as abuse
AlexZ83 wrote:

Oh how interesting! First the Obamanation administration forces the healthcare bill down the Americans’ throats and handsomely loses public rating because of it. Now faced with the popular backlash they decide to go off on a gamble publicity stunt of suing Goldman-Sachs for nothing less than causing the financial crisis in the first place. Well good luck with that comrades! Just so you know, the people are not stupid. We’ve seen and read this through and through and you’ll hear from us come November 2nd.

Apr 17, 2010 12:36pm EDT  --  Report as abuse
hsvkitty wrote:

What a dumb comment Alex Z83. Do people pay you to bring this propaganda crap here or did you just swallow more stuff to regurgitate from watching FOX news? (Before you call me Republican leftie know I am a centrist from Canada)

If you truly can’t see that the banks require an upheaval and regulation and that this was necessary you need to read more and have a voice that is your own, rather then ‘Rush told you so!’

From where I sit, the tea party looks like an angry mob of hate who are so partisan that they couldn’t/can’t fathom Bush was the problem and can’t see past their noses to see Obama is working for the people and give him a chance to do his job.

Apr 17, 2010 5:29pm EDT  --  Report as abuse
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