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More Than Goldman Sachs In SEC Gun Sight (Others should be worried, too, and they know who they are)
Forbes ^ | 04/17/2010 | Robert Lenzner

Posted on 04/17/2010 10:23:07 AM PDT by SeekAndFind

The chickens may have come home to roost for Goldman Sachs and perhaps for a host of other purveyors of rotten mortgage-backed securities that were fobbed off on unsuspecting investors.

The Securities and Exchange Commission's enforcement chief revealed Friday that his investigators were looking at "other products and practices" on Wall Street that might also lead to eventual fraud charges for others. In the meantime, be aware that the government is seeking the disgorgement of illegal profits Goldman Sachs ( GS - news - people ) obtained as a "result of fraudulent misconduct."

Last but not least, the U.S. Attorney in New York, had "no comment' when asked if the Justice Department had in the works a criminal investigation of this civil fraud action by the SEC. In the present climate of anger toward Wall Street you can probably count on a criminal investigation. Justice recently divulged it was looking into accusations that Lehman Bros. hid massive debts from investors just before it went bankrupt.

Truthfully, any indictment is unlikely as it would threaten Goldman's charter as a dealer of Treasury securities and throw the financial community back into panic.

Goldman is adamantly protesting its innocence, as it did in a Bloomberg Business Week cover story recently and in Lloyd Blankfein's letter to shareholders as chairman. Goldman apparently did not wish to settle this matter even though it only received a fee of $15 million for issuing the securities in 2007.

Let's go to the videotape. Where Goldman is most at fault is in not informing its innocent investors in mortgage-backed securities that a masterful hedge fund operator, John Paulson, played a key role in choosing the soon-to-evaporate-in-value mortgages. Nor did Goldman reveal in its documents Paulson was making massive short bets on housing prices against buyers of the securities.

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: fraud; goldmansachs; sec

1 posted on 04/17/2010 10:23:07 AM PDT by SeekAndFind
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To: SeekAndFind
With “friends” like Obama, who needs enemies? - see http://canadafreepress.com/index.php/article/22067
2 posted on 04/17/2010 10:25:36 AM PDT by K-oneTexas (I'm not a judge and there ain't enough of me to be a jury. (Zell Miller, A National Party No More))
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To: SeekAndFind
"Unsuspecting investors"

ROFL, these people should have known better, their GREED, was their downfall, not Wall St. They are no better than WELFARE RECIPIENTS.

3 posted on 04/17/2010 10:30:39 AM PDT by VRWC For Truth (Throw the bums out who vote yes on the bail out)
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To: SeekAndFind

For the more “Sesame Street” explanation of the Goldman/Paulson deal, Dylan Ratigan had a segment on PMSNBC that runs it down pretty well. I must say, I am shocked to see this on semi-mainstream TV.

http://www.youtube.com/watch?v=MMSa1WYUFJc&feature=player_embedded

{part 1 of 2]


4 posted on 04/17/2010 10:31:45 AM PDT by Attention Surplus Disorder (Voters who thought their ship came in with 0bama are on their own Titanic.)
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To: SeekAndFind
Others, with experience in how the market acts in alleged scandals, say, "Next week, I'm going to back my truck up and start loading up on Goldman Sachs stock."

The SEC knows this too. GS will not be hurt. This is strong evidence that what is happening now is a political PR stunt.

5 posted on 04/17/2010 10:33:58 AM PDT by mlocher (USA is a sovereign nation)
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To: mlocher
This is strong evidence that what is happening now is a political PR stunt.

If this is so, who is benefiting from the stunt and how ?
6 posted on 04/17/2010 10:37:04 AM PDT by SeekAndFind
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To: SeekAndFind

Since most of Obama’s stock portfolio is Goldman Sachs, they will not go down. Bet on that.


7 posted on 04/17/2010 10:37:58 AM PDT by OafOfOffice (W.C:Socialism:Philosophy of failure,creed of ignorance,gospel of envy,the equal sharing of misery)
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To: OafOfOffice

RE: Since most of Obama’s stock portfolio is Goldman Sachs, they will not go down. Bet on that.

Did Obummer disclose this somewhere ? How do you know that ?


8 posted on 04/17/2010 10:39:26 AM PDT by SeekAndFind
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To: SeekAndFind

There’s a local investment “guru” on Saturday morning radio here in Syracuse NY who gave a pretty precise explanation of what happened.

He predicts that the government won’t do anything to Goldman. He says that they will set up for a trial, there’ll be a big to-do about how GS is going to get creamed by a jury, and then, at the last minute, they’ll settle with the SEC for between $1B and $2B, it’ll be “hailed as the biggest fine against a financial giant since last Tuesday,” and life will go on.

He also said that, for GS, paying a $1.5B fine is like for an ordinary person to go without an extra cup of coffee at lunch.


9 posted on 04/17/2010 10:41:21 AM PDT by Steely Tom (Obama goes on long after the thrill of Obama is gone)
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To: SeekAndFind

Did Soros get dinged on the deal?.


10 posted on 04/17/2010 10:43:54 AM PDT by Vaduz
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To: SeekAndFind
If this is so, who is benefiting from the stunt and how?

Obama and the dems want to get the financial reform bill passed. (I will not get into the disgusting merits of the bill here). The dems know that America does not trust its leaders, but they also know that many Americans do not trust Wall Street. They are getting the GS story out NOW to gin up America agains GS, and use it as propaganda to get more of America behind the financial reform bill.

11 posted on 04/17/2010 10:46:48 AM PDT by mlocher (USA is a sovereign nation)
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To: SeekAndFind

I have it in my posts somewhere. Hold on.


12 posted on 04/17/2010 11:05:36 AM PDT by OafOfOffice (W.C:Socialism:Philosophy of failure,creed of ignorance,gospel of envy,the equal sharing of misery)
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To: mlocher

They are establilshing precedent for CIVIL fraud thru Goldman so that the potential thousands of suits and charges in the future involving others will also be civil fraud. No one will go to jail....”Too Big to Fail means Too Big for Jail”.


13 posted on 04/17/2010 11:29:31 AM PDT by givemELL (Does Taiwan Meet the Criteria to Qualify as an "Overseas Territory of the United States"? by Richar)
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To: SeekAndFind

There is more, but here is one post. We all found this information researching Obama’s scam for swine flu vaccine he also was invested in.

Barack Obama has shares in Baxter

Friday, November 27, 2009 5:54:43 PM · 56 of 56

Just thought I would add this information here. It goes along with Obama’s shares in Goldman sachs. Geithner’s buddies and Paulson former CEO of Goldman sachs who ran to Bush and said immediate funds needed to bailout banks.

Obama buys shares in Goldman sachs in years prior. Then he gets into office,hires Geithner who proceeds to rape taxpayers and hand billions to Goldman Sachs with no ties.

Ratigan on Goldman Sachs: “Legalized Theft” with a little help from Paulson, Geithner and Obama

http://www.wealthdaily.com/articles/ratigan-on-goldman-sachs-legalized-theft/2136

The Goldman Sachs Oligarchy The nexus between power and money. Taxpayers bailed out Corleone mafia.

http://www.wealthdaily.com/articles/the-goldman-sachs-oligarchy/1899


14 posted on 04/17/2010 11:49:13 AM PDT by OafOfOffice (W.C:Socialism:Philosophy of failure,creed of ignorance,gospel of envy,the equal sharing of misery)
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To: OafOfOffice

Obama 2005 financial filings.

http://www.washingtonpost.com/wp-srv/politics/congress/fin_dis/2005/o000167.pdf

stocks;
AVI biopharma
Sky Terra

mutual fund;
Vanguard

http://www.washingtonpost.com/wp-srv/politics/congress/fin_dis/2006/o000167.pdf
Obama 2006 financial filings;

STOCKS
Purchase GOLDMAN SACHS

Mutual funds,
Vanguard
Nuveen
Marshall prime money
PIMCO

http://www.washingtonpost.com/wp-srv/politics/congress/fin_dis/2007/o000167.pdf
2007 FINANCIAL FILINGS

Pretty much the same as 2006.


15 posted on 04/17/2010 11:54:54 AM PDT by OafOfOffice (W.C:Socialism:Philosophy of failure,creed of ignorance,gospel of envy,the equal sharing of misery)
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To: OafOfOffice

Goldman sachs and obama has a couple of Vanguard accounts.

http://www.abovetopsecret.com/forum/thread482681/pg1

Top Shareholders of Baxter International Inc

As we all know by now, Baxter International is the maker of Tamiflu, the so-called vaccine against AHN1 Virus otherwise know as Swine flu.

Here is a list of the major stock holders of Baxter (Company, Shares):
Barclays Global Investors UK Holdings Ltd 29,957,962
STATE STREET CORPORATION 24,740,249
FMR LLC 21,991,429 3
VANGUARD GROUP, INC. (THE) 20,649,171
AXA 19,281,506
GOLDMAN SACHS GROUP INC 15,187,865
JANUS CAPITAL MANAGEMENT, LLC 14,979,783
JENNISON ASSOCIATES LLC 14,504,345
PRICE (T.ROWE) ASSOCIATES INC 13,792,483
STATE FARM MUTUAL AUTOMOBILE INSURANCE CO 12,975,694

An investigation into these companies reveal a tale of corruption, crime and swindles:

Janus Capital Management has been implicated in market swindles before:

The Securities and Exchange Commission has accused three former executives of Janus Capital Management of improperly allowing market-timing trades in the company’s mutual funds. SEC documents released Monday said the agency is seeking unspecified fines and sanctions against Warren Lammert, Lars Soderberg and Lance Newcomb for allegedly allowing rapid trading in Janus funds despite company rules that discouraged it. All three have left the company.

Janus Controversy

Goldman Sachs is in bed with the US government:

In July 2009, Rolling Stone contributer Matt Taibbi published an article on Goldman Sachs titled, ‘The Great American Bubble Machine’, where he condemns the company as “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money,” and going on to assert that Goldman Sachs and similar companies have come out ahead in every economic recession and bubble since The Great Depression. The piece generated much media attention and controversy, evoking a response by a Goldman Sachs spokesman describing it as “an hysterical compilation of conspiracy theories”. He added, “we reject the assertion that we are inflators of bubbles and profiteers in busts, and we are painfully conscious of the importance in being a force for good.” Taibbi rebutted, “Goldman has its alumni pushing its views from the pulpit of the U.S. Treasury, the NYSE, the World Bank, and numerous other important posts; it also has former players fronting major TV shows. They have the ear of the president if they want it.”


16 posted on 04/17/2010 11:56:12 AM PDT by OafOfOffice (W.C:Socialism:Philosophy of failure,creed of ignorance,gospel of envy,the equal sharing of misery)
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To: OafOfOffice
Good post.

How much TARP money did Goldman get?

5.56mm

17 posted on 04/17/2010 12:00:54 PM PDT by M Kehoe
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To: mlocher

“The SEC knows this too. GS will not be hurt. This is strong evidence that what is happening now is a political PR stunt.”

True. If this were serious it would be a criminal case, not a civil case. This is a good old fashioned shakedown to send Wall Street a lesson about where to send its campaign contributions this year. Goldman will pay a few hundred million in fines to the Treasury in an out of court settlement and will up its payments to the DNC and Democrat candidates. Other Wall Street banks will fall in line.


18 posted on 04/17/2010 12:06:15 PM PDT by Soul of the South (When times are tough the tough get going.)
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To: M Kehoe

http://www.usatoday.com/money/economy/2009-04-14-tarp-repay-bank-bailout_N.htm

Goldman Sachs takes $12B Bailout, Hands out $14B Bonuses

I am not sure this is all they received.


19 posted on 04/17/2010 12:32:22 PM PDT by OafOfOffice (W.C:Socialism:Philosophy of failure,creed of ignorance,gospel of envy,the equal sharing of misery)
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To: mlocher

Exactly. Only a means of fining/ collecting money from the firms. No ones going to jail


20 posted on 04/17/2010 1:21:02 PM PDT by captbarney
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To: SeekAndFind

Some background articles.

It was unclear whether the govt let Lehman fall“to teach Wall Street a lesson” It was to save Paulsons Goldman Sachs http://tinyurl.com/n2ebof

Hank Paulson’s Former Co Goldman Sachs Admits Its Software Can “Manipulate Markets in Unfair Ways” http://tinyurl.com/kjea5l

In order to shift funds to his former company Goldman Sachs, Hank Paulson got a “Waiver of ethics disclosure” for conflict of interest.


21 posted on 04/17/2010 1:32:33 PM PDT by OafOfOffice (W.C:Socialism:Philosophy of failure,creed of ignorance,gospel of envy,the equal sharing of misery)
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To: OafOfOffice

DNC and Obama using Goldman Sachs SEC problems to push their goal of power. How hypocritical of Obama and his thugs.

http://ow.ly/1762N7

Rep. Darrell Issa of California, the top Republican on the House Committee on Oversight and Government, said in an e-mail: “It must be nice for the Democrats that the SEC’s filing against Goldman Sachs so conveniently fits into their political agenda. But at the end of the day, all the theatrics and tactics in the world will not successfully divert the American people’s attention away from the inescapable fact that the very people the Democrats are trying to blame for main street’s problems are the same people that they gave a blank check to when they bailed them out with hundreds of billions of taxpayers’ dollars.”


22 posted on 04/17/2010 2:57:28 PM PDT by OafOfOffice (W.C:Socialism:Philosophy of failure,creed of ignorance,gospel of envy,the equal sharing of misery)
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To: SeekAndFind
>>"result of fraudulent misconduct."

FICO FICO who gots da FICO?



Got SQL?
23 posted on 04/18/2010 5:11:33 AM PDT by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
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To: OafOfOffice
[...But at the end of the day, all the theatrics and tactics in the world will not successfully divert the American people?s attention away from the inescapable fact that the very people the Democrats are trying to blame for main street?s problems are the same people that they gave a blank check to when they bailed them out with hundreds of billions of taxpayers? dollars.?]
R.I.N.O.
 
 
A Republic is a system, of governance characterized by the Rule of Law.
When the Law fails, the Republic fails.

24 posted on 04/18/2010 5:16:09 AM PDT by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
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To: LomanBill

Are you saying both parties are culpable?


25 posted on 04/18/2010 3:12:12 PM PDT by OafOfOffice (W.C:Socialism:Philosophy of failure,creed of ignorance,gospel of envy,the equal sharing of misery)
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To: OafOfOffice
Roland Arnall
Bush Ambassador to the Netherlands
and Godfather of Subprime


26 posted on 04/18/2010 5:21:48 PM PDT by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
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To: LomanBill

I agree. Did you happen to see porker of the year is a republican?

$29,992,000 by Senate Appropriations Committee Ranking Member Thad Cochran (R-Miss.) for 27 projects, including: $4,000,000 for the Jamie Whitten Delta States Research Center, Stoneville; $1,500,000 for Berryman Institute, Jack Berryman Institute, Utah and Mississippi Agriculture and Forestry Experiment Station; $1,002,000 for Mississippi Valley State University, curriculum development; $939,000 for the Agricultural Wildlife Conservation Center; and $231,000 for e-commerce research, because no one knows how to go online.

With Republicans in charge earmarks hit their peak at $29 billion in 2006. Now down to $19.6 billion in fiscal year 2009.


27 posted on 04/19/2010 7:17:39 AM PDT by OafOfOffice (W.C:Socialism:Philosophy of failure,creed of ignorance,gospel of envy,the equal sharing of misery)
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