WASHINGTON — In 2006 and 2007, Goldman Sachs Group peddled more than $40 billion in securities backed by at least 200,000 risky home mortgages, but never told the buyers it was secretly betting that a sharp drop in U.S. housing prices would send the value of those securities plummeting. Goldman's sales and its clandestine wagers, completed at the brink of the housing market meltdown, enabled the nation's premier investment bank to pass most of its potential losses to others before a flood of mortgage defaults staggered the U.S. and global economies. Only later did investors discover that what Goldman had promoted as triple-A rated investments were closer to junk. Now, pension funds, insurance companies, labor unions and foreign financial institutions that bought those dicey mortgage securities are facing large losses, and a five-month McClatchy investigation has found that Goldman's failure to disclose that it made secret, exotic bets on an imminent housing crash may have violated securities laws. (Excerpt) Read more at mcclatchydc.com ...
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Goldman Sachs Will Be Sitting Pretty With Emanuel in the Obama White House
By Timothy P. Carney, Examiner Columnist, Nov 21, 2008
EXCERPT Today, in these tumultuous times of bailouts and meltdowns when the investment banking leviathan needs Washington more than ever before, Goldman Sachs can leverage its most valuable asset yet White House chief of staff Rahm Emanuel.
Traditionally a Democratic booster, and one of Barack Obama’s top sources of funds in this past election, Goldman has always had particularly strong allies in government.
Rahm Emanuel is one such ally. An interesting early chapter in the Goldman-Emanuel relationship took place in the setting of Bill Clinton’s 1992 campaign for the White House. Clinton hired Emanuel as his chief fundraiser.At the same time, however, Emanuel was on the payroll of Goldman Sachs, receiving $3,000 per month from the firm to “introduce us to people,” in the words of one Goldman partner at the time. This is certainly a noteworthy relationship, but it’s one that has almost entirely escaped scrutiny. (snip)
In his four terms in Congress, Emanuel raised $74,750 from Goldman, making the firm his number four source of funds. Goldman has helped Emanuel. How has Emanuel helped Goldman? The most obvious answer, as mentioned in this column two weeks ago, is in Emanuel’s lead role in shepherding the “$700 billion” bailout—first proposed by former a Goldman CEO, Bush Treasury Secretary Henry Paulson—through the skeptical House.
Of course, back in the Clinton days, Goldman benefited from NAFTA and the bailout of the Mexican currency, with Emanuel pushing NAFTA through Congress, and Rubin hammering out the peso bailout.
Did Goldman improperly funnel money to the Clinton campaign by subsidizing Emanuel’s salary in 1992? Did Goldman’s help to Clinton spur the Democratic president to push NAFTA and the Mexican bailout?
The answers to these questions are opaque, and with Emanuel burrowed deep within the Obama White House, the continued relationship between Goldman Sachs and Obama’s right hand man won’t be easy to follow.
Watch which regulations of Wall Street Obama fights for. Watch where the bailout money goes.
SOURCE http://www.washingtonexaminer.com/opinion/columns/TimothyCarney/ Goldman_Sach_Will_Be_Sitting_Pretty_With_Emanuel_in_the_Obama_White_House_112108.html
THINGS WE DO NOT KNOW ABOUT RAHM EMANUEL Did Rahm reveal all of his ties to financial institutions involved in Obama's trillion dollar federal bailout of financials?
These financial “geniuses” (like Rahm) are “licensed.” Financial licenses can be lifted for any number of reasons. For instance:
If licensees fail to disclose ownership in investment vehicles.
If licensees fail to file proper documentation with govt agencies.
If licensees fail to file reports with The Treasury.
If licensees fail to file state and federal tax returns (stolen money is taxable).
If licensees fail to pay state and federal taxes on hidden profits.
If licensees fail to account for investment proceeds.
HERE’S HOW JUDGES PREDICATE SENTENCING GUIDELINES:
Amount licensee lost to the the Treasury, the taxpayers and others. What role a licensee had in conspiracy schemes to defraud. Whether a licensee obstructed justice in the course of investigations or, later, during trial.
AND LOOK FOR THIS Orchestrating votes for funding schemes——while holding idden equity positions in companies doing business with the govt.
Audits might uncover questionable banking activities, and fraudulent accounting practices. An audit might show two sets of books-—with off-the-books bank accounts accessed solely by govt looters. Illegal schemes might involve:
(1) money laundering,
(2) tax evasion (stolen money is taxable),
(3) violations of US banking and currency laws,
(4) conspiracy to commit wire fraud,
(5) commercial bribery in real estate schemes,
(6) establishing secret offshore bank accounts outside the purview of the IRS,
(7) fraudulent and casual accounting practices,
(8) non-existent financial oversight,
(9) computer trespass, computer tampering,
(10) grand larceny.
ACTION
(1) EMAIL enforcement@SEC.gov
(2) IRS toll free 1-800-829-0433 You may stay anonymous.
(Stolen money is taxable)
(3) Govt officials mishandling tax-exempt revenue are subject to fiduciary negligence laws. EMAILaskDOJ@USDOJ.gov.
(4) Banks holding govt monies should be audited (or be subject to federal regulators).