SEC charges vampire Goldman Sachs with fraud

goldman vampire

Vampire Goldman Sachs

After sitting on its hands for over a year, the SEC has finally charged Goldman Sachs with securities fraud for their role in the mortgage industry meltdown. (story here) While the timing is somewhat suspect, this is good news.

The government on Friday accused Wall Street’s most powerful firm of fraud, saying Goldman Sachs & Co. sold mortgage investments without telling the buyers that the securities were crafted with input from a client who was betting on them to fail.And fail they did. The securities cost investors close to $1 billion while helping Goldman client Paulson & Co., a hedge fund, capitalize on the housing bust. The Goldman executive accused of shepherding the deal allegedly boasted about the “exotic trades” he created “without necessarily understanding all of the implications of those monstrosities!!!”

The civil charges filed by the Securities and Exchange Commission are the government’s most significant legal action related to the mortgage meltdown that ignited the financial crisis and helped plunge the country into recession.

The news sent Goldman Sachs shares and the stock market reeling as the SEC said other financial deals related to the meltdown continue to be investigated. It was a blow to the reputation of a financial giant that had emerged relatively unscathed from the economic crisis.

Goldman Sachs denied the allegations. In a statement, it called the SEC’s charges “completely unfounded in law and fact” and said it will contest them.

While I personally think that the collapse of the financial market had its roots in bad government policy, there were big winners whose roles cannot be understated. Goldman Sachs was one of the biggest winners and if you “follow the money,” you can see why.

Goldman has a long history of ties to the federal government. Former Goldman employees have often served in powerful positions in various government agencies where they were able to craft policies that favored Goldman. In addition former government honchos have left their jobs for plum positions at Goldman – payoffs for helping Goldman Sachs. The company has also been in a class by itself when it comes to buying influence in congress. Here are just a few resources that outline this incestuous and vampiric relationship between Goldman Sachs and the government:

Finally, this story (from OpenMarket.org) describes how pending financial “reform” legislation crafted by corruptocrat Chris Dodd might actually be a parting gift to Goldman. Any bets that Dodd will somehow score a cushy job at Goldman or one of their lobbying arms after leaving the senate?

Given that two of the top financial goons in the administration are former Goldman bigwigs, it will be surprising if the government really goes after them.

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4 Responses to “SEC charges vampire Goldman Sachs with fraud”

  1. […] taken a page from the Goldman Sachs playbook on how to infiltrate the government (more on Goldman here). All the more reason to give Google the heave-ho (previous […]

  2. […] Vampire Goldman Sachs has agreed to pay $550M to settle a civil suit brought by the SEC. (story here from AP) This is the largest penalty ever levied against a Wall Street firm by the SEC. Goldman Sachs & Co. has agreed to pay $550 million to settle civil fraud charges that the Wall Street giant misled buyers of mortgage-related investments.The settlement was announced Thursday by the Securities and Exchange Commission hours after Congress gave final approval to the stiffest restrictions on banks and Wall Street since the Great Depression. […]

  3. jjoshuajj21 Says:

    Yes you are right, Goldman Sachs is a PARASITE (vampire) that lives off the-mind and effort (value-production) of We-The-People, without any benefits in return. So, the sunlight will shine in the form of a woman named Mary Shapiro, and she will put a burn these vampires >>>> http://the2010campaignconspiracy.wordpress.com/ <<<<<

  4. […] Da Mook Just an ordinary average mook… « SEC charges vampire Goldman Sachs with fraud […]

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