Goldman Sachs fraud

[Kestastrophe]

http://online.wsj.com/article/SB10001424052702303491304575187920845670844.html?mod=WSJ_hpp_LEADNewsCollection

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.....

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 )

[Smooth Groove]

at people for trusting a company with a Jewish name.  How could anyone be surprised at being ripped off?

[Cormacaroni]

I got hard when I saw "Paulson" but it didn't last :'(

[Kestastrophe]

I got hard when I saw "Paulson" but it didn't last :'(

Me too. How juicy would that have been

[Olivia Wilde Homo]

I got hard when I saw "Paulson" but it didn't last :'(

Me too. How juicy would that have been

I concur.

[BlackMage]

DAT JEW

[Great Rumbler]

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.

[Cormacaroni]

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.

[Phoenix Dark]

Talk about perfect momentum for financial regulation. But guess who'll be going to bat for the banksters

[Brehvolution]

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.

[Phoenix Dark]

Zero Hero, are you talking about Goldman Sachs or Green Shinobi? 

[Rman]

Goldman has been pulling shady stuff like this for a while.