Senate probe: Goldman misled clients and nation — and made billions

[kpete]

Source: McClatchy


Senate probe: Goldman misled clients and nation — and made billions
By Greg Gordon and Chris Adams | McClatchy Newspapers

WASHINGTON — Goldman Sachs reaped "billions and billions of dollars" in profits by secretly betting in 2006 and 2007 that the U.S. housing market would crash, a strategy that conflicted with the interests of its clients who were still buying the firm's risky mortgage securities, Senate investigators said Monday.

"The evidence shows that Goldman repeatedly put its own interests and profits ahead of the interests of its clients," Sen. Carl Levin, D-Mich, the chairman of the Permanent Investigations Subcommittee, told a news briefing. "I think they've been misleading to the country."

The panel provided the first detailed glimpse of its findings from an 18-month investigation into the world's most prestigious investment bank, setting the stage for a hearing Tuesday at which Goldman's chief executive, Lloyd Blankfein, and six other company executives will give sworn testimony.

Blankfein, in testimony prepared for delivery Tuesday, denied that Goldman orchestrated a "massive short," or a series of negative bets that enabled it to ring up huge profits when the housing bubble burst and sank the nation's economy.




Read more: http://www.mcclatchydc.com/2010/04/26/92914/goldman-secretly-made-billions.html#ixzz0mFfMEVv4

[sandnsea]

1. So sick of this "secret" bullshit

It was no damn secret. They all knew they were doing it. They wrote about it. This is just a big orchestration against Goldman to satisfy the hounds, while they let the rest of Wall Street off the hook.

http://www.realestatejournal.com/buysell/mortgages/20061031-whitehouse.html

[AlbertCat]

5. Who are "they"?

And poor put upon Goldman is being used? They're the victim here? So the "rest" of Wall Street can get away with everything?


What are you smoking?



Just a reminder folks.... the entire GOP in the Senate just voted to help these guys. (So don't worry "sandnsea"... the GOP will save Goldmans from this "unjust" scrutiny!)

:eyes:

[sandnsea]

7. Did you click the link? They are ALL of Wall Street

You want to let them pretend it's just Goldman, so there's no need to change the laws?? That's their plan. Tell everybody they caught and punished the bad guys so there's no need for stricter regulations, everything is working just fine.

I've been harping on this "secret" for a couple of years so don't tell me I'm the one smoking something. I knew all along they concocted these mortgages so they could create the derivative market.

[JackRiddler]

9. New laws won't be followed if frauds on this scale are never punished.

There is no conflict between nailing GS for fraud (and this qualifies - they didn't inform about the criteria for putting together the fund and they went and got AAA ratings for junk) and changing the laws. In fact, a big showy case is necessary to mobilize the political will.

We can only hope a few thousand convictions will follow, as was the case during the S&L fraud wave. We can only hope it encompasses the rest of the banksters who engaged in fraud on investors.

And don't be so dramatic - a lot of us saw this coming, since 2005 at least.

[sandnsea]

11. If we let them pretend it's only Goldman

And nobody knew what they were up to, that it was all a big secret, then there won't be thousands of convictions following. That's my point.

And if you saw the derivative crash coming since 2005, then why aren't you outraged that they're pretending it's all a big secret that nobody knew?

[JackRiddler]

15. I may have outrage exhaustion...

Hell, I've been outraged since the 1980s S&L plunder in which the biggest fish of all went unpunished - but at least there were 1,000 convictions back then.

Again, I don't consider myself the least special for knowing where the derivatives bubble was headed back in 2005. Wiser observers than I explained it to me, I was merely smart enough to understand the logic and the parameters and why it was inevitable.

I assure you, I'm outraged over the fixes and frauds that set up this crash, from the issuance of guaranteed to fail loans at the bottom through securitization all the way up to the CDOs and CDSs and the repo and ratings agency and bailout and account-keeping frauds. And it won't be enough to punish Goldman only - if Goldman even gets punished. We probably agree.

[closeupready]

14. That's what I think, as well.

n/t

[ozymandius]

2. No one still uses the "F" word.

So I will use it for them. Goldman's activities amount to fraud. "Misleading" does not come even close to the matter.

[xchrom]

3. Recommend

[defendandprotect]

4. Break them up and put them out of business . . .

[Dyedinthewoolliberal]

6. Tar and Feather the bastards,

and bar them from going anywhere near their former profession again..... :mad:
Oh, and seize their assets to repay the taxpayer.

[WillyT]

8. + 1,000,000,000... What You Said...

:kick:

[Roland99]

10. You "think", Carl? You "think"?!?!?!?!

[ShortnFiery]

12. This should be on CSPAN 1 and 2 as well. eom

[ShortnFiery]

13. Stephanie Miller's "Esmeralda from Bewitched" is talking now.

a.k.a. Senator Susan Collins (R-Maine)

[Uncle Joe]

16. Kicked and recommended.

Thanks for the thread, kpete.

[chill_wind]

17. K & R. n/t