Goldman Sachs Fraud
Here is a big surprise, Wall Street was caught with its pants down around the ankles screwing people over to make a buck! Now the Fed's are on their ass like gravy on mashed potato's. Being stupid knows no level of education. These pukes created a program that was destined to fail but once the check cleared they thought they were good to go. It is regulations on people that are money hungry that protect idiots like you and me that have no clue that our bank, insurance company or whatever invested in this crap. When the big boys collapse, so follows your investments.
S.E.C. Accuses Goldman of Fraud in Housing Deal
By LOUISE STORY and GRETCHEN MORGENSON
Published: April 16, 2010
The move was the first time that regulators had taken action against a Wall Street deal that helped investors capitalize on the collapse of the housing market.
The suit also named Fabrice Tourre, a vice president at Goldman who helped create and sell the investment.
Snip, cut to the point...
Goldman told investors that the bonds would be chosen by an independent manager. In the case of Abacus 2007-AC1, however, Goldman let Mr. Paulson select mortgage bonds that he believed were most likely to lose value, according to the complaint.
Goldman then sold the package to investors like foreign banks, pension funds and insurance companies, which would profit only if the bonds gained value. The European banks IKB and ABN Amro and other investors lost more than $1 billion in the deal, the commission said. - New York Times
Just let me be clear on this, it is okay for one bank to screw over their own investors if a buck can be made? And the Republican's are now bitching that regulation being pushed by the Democrats of investment and securities companies is not a good thing? Those two things do not go together? If you are pro business then you better make sure that you protect business investors or are they not really important to the big picture if a quick buck can be made?
The Republican Party is a joke right now. You bitch and moan that you are the party of change but your own political people in government want no change because the cash keeps rolling in.
What ever happened to doing something because it was the right thing to do? Is that not common sense? Are all politicians morons just because they can't do what is right and makes sense?
This lawsuit will not be finished in the next ten plus years. So the crooks can continue to do whatever they damn well please. Nice.