SEC Charges Goldman Sachs and Executive With Fraud

[sixmile]

http://www.truth-out.org/goldman-sachs-and-executive-charged-fraud/1302937200

'The Securities and Exchange Commission Friday charged Goldman Sachs & Co. and one of its executives with fraud in a risky offshore deal backed by subprime mortgages that cost investors more than $1 billion.

The SEC also contends that Goldman allowed a client, Wall Street hedge fund Paulson & Co., to help select the securities to be sold. Paulson in turn bought insurance against the deal and when the securities tanked, losing almost all their value, Paulson made a $1 billion profit.

The civil fraud charges were the first to be filed against Goldman, the prestigious Wall Street investment-banking titan that's at the center of multiple inquiries into the causes of the global financial meltdown.

Paulson has acknowledged that it reaped a $3.7 billion profit by betting against the housing market as it nose-dived in 2006 and 2007.'

more at link

Thank you, Matt Taibbi!

[HowHasItComeToThis]

1. MAKE MONEY IS THE ONLY THING...... GO STRAIGHT TO HEAVEN

[aquart]

2. What? WHAT? Wait.

What is the difference between civil and criminal fraud?

[Rex]

5. No jailtime, just have to pay money for damages?

Good question, that is my only guess.

[dixiegrrrrl]

12. You got it.

Pay a fine equal to 1% or less of what you stole, ( just consider that a whitewash tax)
sign a piece of paper admitting no wrong doing.
and
Viola!!!!
You get to go do it again.

No Just Us Dept involvement.( they do criminal fraud. Theoretically.)

And the head of the SEC?
Obama chose her. Almost as soon as he took the oath of office.


After she investigated Madoff and gave him a clean bill of health.

January 23, 2009

"Mary Schapiro, the regulator who once cleared part of Bernard Madoff's $50 billion investment business from fraud, was last night approved by the US Senate as head of the Securities and Exchange Commission.
.....Ms Schapiro was chief executive of the Financial Industry Regulatory Authority which gave Mr Madoff a clean bill of health when they investigated his business."

http://www.timesonline.co.uk/tol/news/world/us_and_americas/us_elections/article5571183.ece

She has been a financial regulator under Reagan, Clinton and Shrub.
Most famously, she went on record AGAINST regulation of derivative markets.
http://en.wikipedia.org/wiki/Mary_Schapiro

the wiki article gives a lot of examples of exactly who Shapiro is protecting.

[blondeatlast]

13. Civil fraud is easier to prove. Preponderance of the evidence vs. reasonable doubt. nt

[notadmblnd]

3. So I can assume that 3.7 billion will be hitting the Treasury's steps soon?

yeah, I know- when pigs fly.

[democracy1st]

4. K & R

[WhiteTara]

6. good. n/t

[spanone]

7. k&r...

[RUMMYisFROSTED]

8. "...one of its executives ...

:eyes:

[Donnachaidh]

9. I want to see bodies in prison jumpsuits -- no *fines and a slapped hand*

And this had better be the first of MANY wall street banksters being charged.

[cutlassmama]

10. maybe the population is starting to wake up. Good news

[RagAss]

11. "My Heart Svims in Bluud"

[loudsue]

14. Again: TWO systems of justice in the USA...one for the rich & powerful, and one for the commoners

This country officially SUCKS. These should be CRIMINAL charges. Those assholes FUCKED this country, and investors all over the world.

[AllyCat]

15. Only a billion dollars on this one? Small change.

But I'll take anything if this will stick.

[Octafish]

16. Case Closed.

Time to look forward.

[xchrom]

17. +1