Late last week a second indictment hit the goldman sachs.. Yes, that's right. All our favorite trading company is finally getting some come-up-in's. in this whole global economy destruction that they created. Maybe you heard of this?
I'll be sure to keep you all updated on how precisely they completely avoid tangible punishment. Nothing will come of this and that's so sad. I really can't wait to read what they come up with as punishment. What ineffectual slap on the wrist they are sure to receive for these crimes.
SAN FRANCISCO (MarketWatch) -- The Securities and Exchange Commission on Friday charged Goldman Sachs & Co. and one of its vice presidents for defrauding investors by misstating and omitting key facts about a financial product related to subprime mortgages. The SEC alleges that Goldman Sachs structured and marketed a collateralized debt obligation that hinged on the performance of subprime residential mortgage-backed securities. However, it failed to disclose the role that a major hedge fund, Paulson & Co., played in the portfolio selection process as well as the fact that the hedge fund had taken a short position against the CDO. "Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party," said Robert Khuzami, director of the division of enforcement, in a statement.
It's not like really matters anyway. They own the government and probably received prior knowledge of the indictment and just shorted their own stock to make a couple of bucks on the drop. They're assholes like that.
In reaction to this news their stock dropped 20 bucks (10%). My advice? You should probably buy some because it's going to make all that back and more. Goldman Sachs is the best of the best of the best when it comes to making more money than anyone on Earth could ever conceivably need and they will not get in trouble at all for this. They could push a button and destroy the world economy. They're more powerful than any military on this Earth.
Then again, Goldman stock is like 200 bucks. Poor people don't buy that shit. They don't have the money to play in the big leagues like that. That's what Citigroup is for. They're so scummy. They even use the term betting. Wall Street is just a big casino where they gamble with poor people as currency. Think about it for a second. The entire market is manipulated. If everyone on Wall Street, most investors in general really, actually were punished for the crimes they committed there would be no one left to invest except for a few geriatrics buying penny stocks and Wal-Mart.
It's gotten to the point where I don't even believe there is any accountability in our financial system. Right now the rich are shorting goldman. They'll pick it up on the up swing and make more money all on this news of trying to get justice.
More than anything, it's a lot of poor assholes that are poorer today. These guys have mansions, yachts, gold, and stock options that the average stock investor couldn't dream of owning. 12.5% down on their own stock is pittance compared to their total wealth and the abundance of inside information they have to continue building wealth. Also, if Goldman Sachs collapses, then the world economy collapses. So there's that. They really already won this war.
It's really comically evil how they did all this. Basically the hedge fund was influencing the inclusion of sub prime mortgages into the CDO and then betting that the mortgage takers would default -- all while saying that a neutral party was choosing which mortgages were going into the CDO, and no admission that the fund was betting on defaults.
Then there's this creepy banker dude crying for help to the outside world;
I love this guy. If Sept. 15, 2008, the day Lehman Brothers was allowed to fail, marks the Pearl Harbor or widely acknowledged onset of the present Great Recession (in Franklin Roosevelt’s words “a date which shall live in infamy”), April 16, 2010 may be deemed the equivalent of the U.S. victory in the crucial Battle of Midway in 1942 or the day the U.S. neutralized the Japanese fleet.
By now you have heard that the SEC charged Goldman with defrauding investors in its conflict of interest and lack of disclosure regarding the sale of complex CDOs. This could be a strengthen the hand of reformers on Capitol Hill and in the White House. Perhaps the days of open cheating and self dealing are drawing to a close.
Why is Goldman still a bank anyway? Clearly they can make enormous sums and the market believes they are well capitalized. Why continue to have access to the Fed Discount Window? Answer: because they are Too Big to Fail.