THE BORE

General => The Superdeep Borehole => Topic started by: Kestastrophe on April 16, 2010, 04:38:40 PM

Title: Goldman Sachs fraud
Post by: Kestastrophe on April 16, 2010, 04:38:40 PM
http://online.wsj.com/article/SB10001424052702303491304575187920845670844.html?mod=WSJ_hpp_LEADNewsCollection (http://online.wsj.com/article/SB10001424052702303491304575187920845670844.html?mod=WSJ_hpp_LEADNewsCollection)

Quote
The SEC said in the civil complaint that Goldman and Fabrice Tourre, then vice president, created and sold opaque collateralized-debt obligations, or CDOs, that hinged on the performance of subprime-mortgage-backed securities......

The hedge fund, Paulson &Co., paid Goldman $15 million to create the CDO in early 2007, when the U.S. housing market and related securities were beginning to show signs of distress, the SEC complaint said.....

According to the SEC, Goldman Sachs failed to disclose that Paulson played a significant role in selecting the CDO's portfolio, but the firm then bet against it by entering into a credit-default-swap transaction with Goldman to buy protection on certain layers.....

(http://www.welt.de/multimedia/archive/1236439349000/00768/blankfein_DW_Wirtsc_768218g.jpg)


Basically, Goldman bundled debt (receivable) and sold it to investors, then partnered with a hedge fund and shorted those same securities (bet they would decrease in value), which drove their value into the ground (allegedly :teehee)

Title: Re: Goldman Sachs fraud
Post by: Smooth Groove on April 16, 2010, 04:41:19 PM
(http://www.evilbore.com/forum/Smileys/default/teehee.gif) at people for trusting a company with a Jewish name.  How could anyone be surprised at being ripped off?
Title: Re: Goldman Sachs fraud
Post by: Cormacaroni on April 16, 2010, 06:12:05 PM
I got hard when I saw "Paulson" but it didn't last :'(
Title: Re: Goldman Sachs fraud
Post by: Kestastrophe on April 16, 2010, 07:09:42 PM
I got hard when I saw "Paulson" but it didn't last :'(
Me too. How juicy would that have been :drool
Title: Re: Goldman Sachs fraud
Post by: Olivia Wilde Homo on April 16, 2010, 07:35:37 PM
I got hard when I saw "Paulson" but it didn't last :'(
Me too. How juicy would that have been :drool

I concur.
Title: Re: Goldman Sachs fraud
Post by: BlackMage on April 16, 2010, 07:41:41 PM
DAT JEW
Title: Re: Goldman Sachs fraud
Post by: Great Rumbler on April 16, 2010, 08:06:36 PM
The inevitable end-game:

After five years of wrangling, a couple of Goldman Sachs executives leave [with huge severance packages/immediate employment at other firms] and a eight-figure fine is levied against the company.
Title: Re: Goldman Sachs fraud
Post by: Cormacaroni on April 16, 2010, 08:46:34 PM
The inevitable end-game:

After five years of wrangling, a couple of Goldman Sachs executives leave [with huge severance packages/immediate employment at other firms] and a eight-figure fine is levied against the company.

Tell that to Bernie Madoff and crew. I agree that Goldman gets ridiculously light treatment generally, but the prevailing mood is sufficiently anti-Wall St. that they might get slapped a bit harder than that. If they can prove deliberate fraud, they should be stripped of their securities licenses at least. That would still leave them with plenty of employment options but they wouldn't be able to just walk into another job with a competitor doing the same thing.
Title: Re: Goldman Sachs fraud
Post by: Phoenix Dark on April 16, 2010, 09:47:39 PM
Talk about perfect momentum for financial regulation. But guess who'll be going to bat for the banksters :teehee
Title: Re: Goldman Sachs fraud
Post by: Brehvolution on April 16, 2010, 10:32:06 PM
The inevitable end-game:

After five years of wrangling, a couple of Goldman Sachs executives leave [with huge severance packages/immediate employment at other firms] and a eight-figure fine is levied against the company.

Tell that to Bernie Madoff and crew.

Madoff is in jail for ripping off rich people. GS ripped off poor people. They'll get a slap on the wrist at best.

This is one keen area where I'm interested on how Obama handles this. GS donated over a million bucks to the Obama campaign so we'll see.
Title: Re: Goldman Sachs fraud
Post by: Phoenix Dark on April 16, 2010, 10:39:05 PM
Zero Hero, are you talking about Goldman Sachs or Green Shinobi?  ???
Title: Re: Goldman Sachs fraud
Post by: Rman on April 16, 2010, 11:12:19 PM
Goldman has been pulling shady stuff like this for a while.