Skip to comments.GOP Rep. Darrell Issa Initiates Investigation Into SEC's Goldman Suit
Posted on 04/20/2010 3:52:31 PM PDT by BP2
Congressman Darrell Issa, the ranking Republican on the House Oversight Committee, is initiating an investigation into the timing of the Security and Exchange Commission's fraud suit against Wall Street giant Goldman Sachs.
"The events of the past five days have fueled legitimate suspicion on the part of the American people that the Commission has attempted to assist the White House, the Democratic Party, and Congressional Democrats by timing this suit to coincide with the Senate's consideration of financial regulatory legislation," Issa says.
Issa's staff tells CBS News that they currently have no hard evidence that the SEC violated federal law by colluding with the White House. But they argue the timeline and the circumstances are fishy, and they point to two things in particular: the announcement of the fraud suit the week before Democrats planned to bring their financial reform bill to the Senate floor, and the amazing speed with which Organizing for America managed to purchase a Google ad directing people who typed "Goldman Sachs SEC" on Google to donate money at my.barackobama.com once the news broke on the New York Times website.
Issa's office is not going so far as to make an accusation of impropriety at this point. But they are requesting a raft of documents from the SEC - including "all known communications" between SEC employees and the Executive Office of the President, the Democratic National Committee, the DNC group Organizing for America, or the New York Times. They say if they don't get the documents they want from the SEC, there are "many avenues to pursue," including subpoenas.
This morning, CBS News caught up with SEC Chairman Mary Shapiro as she was departing a House Financial Services Committee hearing on Lehman Brothers' bankruptcy. We asked her if there was any political pressure put on the SEC to bring this suit against Goldman Sachs.
Her response, as she walked away: "Absolutely not."
They must have the goods on Obama to be this forceful at this point.
If so, it'll be interesting to see if the Dems running for re-election will stand by their man ... or run for the hills.
I can’t wait until we take over congress, the congressional hearings will be great TV.
Goldman Sachs has hired former White House counsel, Greg Craig, to advise it on litigation regarding the SEC suit.
They need to pound Obama on this just like the Dems did with Enron. This is bigger than Enron and the Democrats are counting on the Republicans going soft and taking a beating as they try to take the money and eat their wallstreet cake too. I’ve heard that by some estimates this bill will cost as much as 1/2 a trillion dollars to implement. Even Dem congressmen have said it would allow for unlimited bailouts. The RNC needs to run radio and TV ads. Hit Obama on his posturing. Play his blaming the Republicans and then play how much money he received from Wallstreet then post the white house phone number so people can tell the President to stop posturing and just get give the money back.
I just heard some cowardly Fox News commentators suggesting Republicans should just let this one go. Where do they not get the simple message that We the People have been sending them? We want them to stop this mad infantile third world style President. We don’t want them jumping on the bandwagon and pulling his arrogant flesh out of the fire.
Her response, as she walked away: "Absolutely not."
That is because they did not need any political pressure.
There is definitely a lot of smoke so maybe a hot fire is burning. Obama getting a million dollars from Sachs is enough in its own right to say we have a problem here.
I agree the hearings will be great. But -what can He do now?
The communications director of the DNC indicated yesterday that these ads had been in place at least two weeks.
[Brad Woodhouse, the DNC communications director, told POLITICO: We have all kinds of online advertising up to allow folks who are searching and reading online to get involved with Organizing for American and the president and make a difference on his agenda. We've been running online ads since early last year. We watch closely what terms folks are searching and set up our ads accordingly. . . .Woodhouse said the ad is part of an online campaign that began about two weeks ago , and has included such Google search terms as Goldman, Wall Street and Bank of America.]
Now THAT is good news! (Has Obama returned all those campaign donations from Goldman Sachs yet?)
“They need to pound Obama on this just like the Dems did with Enron.”
This needs to be shouted from the mountaintops, as Mark Levin did on his show tonite!
Make this stick and then lower the boom.
American Revolution 2.0 has started.
> They need to pound Obama on this just like the Dems did with Enron.
The American public occasionally gets “confused” about complex issues involving Wall Street.
This one is easy, especially with the current polling on Obama and the Dems.
This is GOOD! Glad to see the spine...............finally!
That’s not true. The SEC brings civil actions all the time, without Justice involvement.
Anything he damn well pleases.
Getting to the bottom of why the Obama administration is taking on Goldman and taking them on now is not a winning issue for Republicans.
I was listening to Mark. He did as usual a great job.
A waste of time and a distraction. Fascist dictatorship = companies and president teaming up together...that’s what we have. Paulson was head of GS, so this charge was purposed by Obama and GS to distract from GS’s real crimes which under this regime will never be uncovered.
Campaign donations, favors, accusations of fascism should be raised in front of a camera...not this.
Could be, but I wonder if it’s not the best idea for the GOP to be on Goldman Sachs side on this one. They are a pretty slimy bunch.
I don’t argue with you. There are a large number of folks here who have tried to defend GS as some sort of hero of the free market system.
Anyone think that the charges were not pre-screened by Goldman lawyers et al before release? Any bets that SEC presented a laundry list of charges and Goldman was able to pick which one to file? The whole thing is a charade to make it look like the SEC and the Administration in general is âdoing somethingâ after bailing out their counter-parties. Billions in bailouts for the counter-parties and this is the penalty they have to pay? Hearings would be rich if the Republican staffers had just a little bit of imagination.
Great point !!! Dems might get caught believing the hype of 2008: that they'd rule for another 40 years, like they did from the 50's until the '94 mid-terms. Could get ugly when we shine some light.
SEC brings actions against small investors all the time. Or unpopular people like Martha Stewart.
Madoff however they ignore.
Impeachment. Trial. Conviction.
Agreed, however, showing the insider trading relationships with Treasury and their constructed con of the American People, and then pinning it on BO and his thugs....priceless!
The bailouts were done in the last administration. The counter party payments to GS through AIG which were basically taxpayer funds were done in part during the Obama Administration but formulated in the previous administration. The financial industry has captured both sides of the aisle.
This is an unexpected shot across the bow. They will try to crush it with indignation but the TPP (Tea Party Patriots)will rally by the millions. This Goldman attack is an attack on you. It is an attack on freedom . It is an attack on our precious free enterprise and it will be crushed.
GP has done nothing wrong. Perhaps you can explain your conclusion with specific facts. You are just drinking the Kool Aid.
Wow! Talk about drinking cool aid. Ever hear about some company called AIG? Ever hear about some guy named Paulson who told the Congress give me a Trillion or I will destroy your economy? Ever hear about derivatives that allowed Greece to hide its debt from the purchasers of its bonds? No. GS did nothing wrong at all. Nothing to see here folks. Just move along.
What did they do wrong? Give us benefit of your detailed wisdom.
Goldman did something wrong with AIG? What was it? Be specific.
Ever hear about some guy named Paulson
A guy named Paulson? You mean the Treasury Secretary? I thought we were talking about Goldman?
who told the Congress give me a Trillion or I will destroy your economy?
Paulson said he would destroy the economy? You have a source or are you making stuff up again?
Ever hear about derivatives that allowed Greece to hide its debt
I didn't realize Goldman was in charge of the books of Greece. You have a source for that claim?
Next you'll blame Goldman for Obama lying about the cost of Obamacare.
GS did nothing wrong at all.
Nothing that you've shown at least.
“Goldman Sachs has hired former White House counsel, Greg Craig, to advise it on litigation regarding the SEC suit.”
> Getting to the bottom of why the Obama administration is taking on Goldman
> and taking them on now is not a winning issue for Republicans.
I disagree. The GOP, despite their MANY faults, is being seen by a majority of 2010's voting electorate as the Cavalry that can save America from the Obama horde.
Obama and the Dems are seen as CORRUPT INSIDERS after ObamaCare by a majority of Americans; deals cut with Goldman Sachs is yet another example of their corruption and influence for hire.
Almost seems like the movie tucker with the times prining the news before it happens.
I don’t think so, because:
a) Goldman’s response was so silly that it showed that they hadn’t had time to formulate a better one,
b) there isn’t any way that if word had come down that the SEC was going to slap this on Goldman on Friday that it would not have been reflected in stock or options movement. The move is so big, and Goldman’s shares are so liquid, that *someone* would have used this for their profit.
c) Goldman would have retained (quietly) the sort of lawyers they’re now retaining prior to Friday.
I don’t see any evidence at this time that Goldman was given a heads-up on this. And, more to the point, the SEC could have been nice (if they wanted to be) and delivered these charges on a Monday through Thursday, which would have been more to Goldman’s advantage. Instead, they delivered them cold-turkey on a Friday - disrupting weekend plans for Goldman execs - a nice little touch on a personal level.
While this might have started as a charade by the administration, the follow-on legal complaints that are now starting to flow in against Goldman (especially from Europe) are not dog-n-pony shows. They’re the real deal.
The GOP needs a different tune on this stuff, because they’re looking stupid. Issa’s complaint doubly so. The GOP should have been working up their own financial legislation without bail-outs and backstops, but instead they chose the current course of stupidity.
And it is obvious to anyone active in markets that Goldman is no hero of “free markets.” They’ve been able to get away with gaming the markets for more than a decade now, thanks to their political connections since Rubin was SecTreas.
Issa to the rescue again. The most hardworking and underestimated rep in the WH. I love this man.
Really!? That's scary. How can we make a coherant fight against the Obie Admin if we don't understand the issues?
THANK YOU FOR YOUR POST!!!!!!!
All of this is being done to keep Companies from giving to GOP in election. Remember Supreme Court over truned Campaign Finance Law. More LIE’S by Obama/Democrats/MSM without question.