Posted on 09/05/2002 3:12:02 AM PDT by Liz
Edited on 05/26/2004 5:08:23 PM PDT by Jim Robinson. [history]
Lawmakers have expanded their probe of Wall Street to encircle two more white-shoe investment banks. The House Financial Services Committee sent 10-page letters yesterday to Goldman Sachs and Swiss-owned Credit Suisse First Boston requesting documents regarding the firms' telecom and technology analysts and IPO allocations, among other things.
(Excerpt) Read more at nypost.com ...
Wash Times 7/17/02
Nicholas Maier, who was syndicate manager of the Wall Street firm Cramer & Co. from 1996 to 1998, told SEC investigators in the spring that Goldman Sachs routinely forced him to buy stocks at inflated prices if he wanted to purchase shares of an initial publicoffering (IPO).
"Goldman, from what I witnessed, they were the worst perpetrator," Mr. Maier said. "They totally fueled the [market] bubble. And it's specifically that kind of behavior thathas caused the market crash. They built these stocks upon an illegal foundation —manipulated up, and ultimately, it really was the small person who ended up buying in."
For example, Mr. Maier told the SEC that Goldman Sachs would offer him shares of anew company's IPO at the initial, low price of $20 per share only if he agreed to purchase"aftermarket" shares of the same company at $100 each. In turn, he would sell the sharesof the higher-priced stock to small investors.
"None of these aftermarket orders had anything to do with what I honestly valued acompany to be worth," Mr. Maier said. "Goldman created the convincing appearance of awinner, and the trick worked so well that they seduced further interest from otherspeculators hoping to participate in the gold rush.
The general public had no idea that these stocks were actually brought into the world at unnaturally high levels through illegal manipulation."
Asked whether he knew about an SEC investigation (of the company he once headed), Mr. Corzine tried the amnesia defense: he said, (Duh.) "That could very possibly be; (duh) I'm not aware of it. I'm divorced from [Goldman] since 1999."
Looks like liberal Democrat and igonorance go hand in hand,
WASHINGTON TIMES 7/17/02 A class-action lawsuit filed in April 2001 accused Goldman Sachs and others of engaging in "laddering" on the initial sale of stock of NetZero, driving up the company's share price to artificially high levels.
In another class-action suit, shareholders of Buy.com have accused the firm and its underwriters, including Goldman Sachs, of engaging in a laddering scheme in its IPO in February 2000, after Mr. Corzine left Goldman. And investors of defunct online grocer Webvan.com have filed a similar suit in federal court concerning that firm's initial public offering in November 1999.
Another class-action suit filed last year says that underwriters, including Goldman Sachs, manipulated several IPOs since 1997, including at least six when Mr. Corzine was still at the helm of Goldman.
"The investigations will lead to wherever they take us..."...hopefully they'll lead to the Justice Department prosecuting these economic terrorists.
They were/are a much bigger threat to FREEDOM than Osama bin Laden. The economic terrorists are destroying America from within.
Can we say HOMELAND SECURITY?
But it was also the week Al Gore quietly named a new campaign chairman: Tony Coelho. What? You mean, Tony Coelho, the ex-Congressman who resigned in disgrace ten years ago rather than face any investigation of his sweetheart loan deal with an S&L executive to buy junk bonds from Drexel Burnham Lambert? Tony Coelho, the man who ran the Democrats' House campaign committee in the 1980s by taking favors from the top S&L crooks and then pressuring the S&L regulators to take a hike? Tony Coelho, one of the top 22 check-bouncers at the House Bank, with more than $300,000 in hot checks? Tony Coelho, the man who stuck up for Jim Wright aide John Mack, after it was revealed this beast brutally assaulted a woman, almost killing her? Tony Coelho, the political mastermind under whose leadership the Democrats lost the House in 1994?
we burrrnnn it."
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