I feel angry that, given all the suffering they have caused, the worst offenders among Wall Street’s criminal banksters have gotten away with their crimes. The exception is Bernie Madoff, and that’s because he ripped off mostly rich folks. However, it is possible that the biggest offender of all may be facing charges.
When U.S. Senator Carl Levin declared that Goldman Sachs Group Inc. (GS) “clearly misled their clients and misled the Congress,” few analysts predicted his allegations would still be reverberating two months later.
Instead the firm’s shares have fallen 16 percent in New York trading since April 13, when Levin’s investigative panel released an exhaustive report on the roots of the 2008 economic meltdown. The Justice Department and Securities and Exchange Commission are examining the findings. Last week the Manhattan District Attorney joined in with a subpoena to Goldman Sachs.
The bank stuck to muted criticism of the Levin report until yesterday, when people briefed on Goldman Sachs’s strategy said the firm was considering preparing its own document to refute the Senate report’s contention it held a “big short” against the housing market while marketing mortgage-backed securities… [emphasis added]
Inserted from <Bloomberg>
But that is exactly what they did. At the same time they were selling toxic mortgage-based securities short, so they would profit when the securities lost value, they were hawking them go the public, lying about what a great investment they were. I have high hope that they will face justice, tempered with the knowledge that Timmy the Tool is bending every ear he can to protect his good friends.
14 Responses to “Will This Bankster Be Busted?”
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That is Carl Levin (D-MI) That old guy doesn’t know how to bring the bacon to his district but he serves America well and I don’t think you’d catch him tweeting because he’s too old school. I think his staff still follows him around with a rotary phone with a twenty thousand foot cord.
LOL! Mark I believe it!
I have no doubt they hit the trifecta here – shorting the housing market, marketing worthless securities to other people and issuing their own crappy loans. This is why we need Glass Stegall back – if your a bank you deal in deposits, withdrawals and mortgages. If your a brokerage house, you bet on stocks, bonds, securities and the like. Never should the two be mixed up. I hope Lloyd does not spend his time in club fed but in a supermax prison just for being such a douche. Not only that, but he participated (and made shitloads of money) off the housing market while doling out mortgages. I hope all his top execs go with him. 🙄 😯 😡
Well, how I got it, the trifecta was the combination in 1929 of unemployment and inflation. I’m also sure they didnt short-sell property to keep the currency stable. Short selling was again this thing when you borrow papers, sell them, then the course crashes, then you buyem back at a lower price and givem back to the owner. Im not totally sure how 2 do so with property, but Goldman Sachs surely is.
Welcome Ccokz. 🙂
I think both were trifectas. each in their own right. What you do is buy an option to sell the security at a price slightly below the market price. (With stocks it’s called a “put” option.) If the market falls well below that price, you but the security and exercise the put to resell high.
Lisa, I fully agree and have often said Glass-Steagall is still needed.
I would love to see them all go down.
As would I Patty!
Wishful thinking. Never happen in this country.
Welcome Nick. 🙂
You may well be right, but they used to tell me bringing the war in Vietnam to an end would never happen too. I’m glad I didn’t give up.
Damn near ALL of Wall Street sucks—what a load of parasites!
Amen, Pope Jack! 😀
these crap-heads are getting away with the country’s treasury and noone is bringing them to justice! I can’t believe they’re still getting bonuses and acting as they did before all hell broke loose! Where are the regulations? Where is justice? Why are they being picked up in their gas-guzzling SUVs and limos – while the rest of us are out of work? They’re laughing all the way to the bank – these guys should be locked up in Rikers and getting an ass-load! Their money should be taken away and given toward the failed mortgages that they designed! Madoff only got it because he hurt some of his rich cat pals!
Lee I agree. Obama blew it when he appointed Timmy the Tool and Ben the Butcher.