SEC charges GS with fraud

Quote from nitro:

I am now getting really cynical. I think we should check all the trades late yesterday. We have time stamps down to the milli second. Someone traded ahead of this news. The crooks are making money off the crooks!
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quite a number of financial stocks already gapped down today at the open
 
I am going to go out on a further limb. If the uptick rule were in place, GS would have triggered long ago, with people buying puts on GS like there was no tomorrow.

Do we really want an uptick rule on crooks?
 
Quote from MohdSalleh:

quite a number of financial stocks already gapped down today at the open
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I am thinking overseas crooks, where they are not under the auspices of the SEC (which appears no longer to be a paper tiger.)
 
The public is going to lap this up. Now remember Goldman reports there earnings next Tuesday, I’m sure this is all been thought thru, and they will reverse the stock come Tuesday.
 
Quote from nutmeg:

Goldman was not the only firm that peddled these complex securities — known as synthetic collateralized debt obligations, or C.D.O.’s — and then made financial bets against them, called selling short in Wall Street parlance. Others that created similar securities and then bet they would fail, according to Wall Street traders, include Deutsche Bank and Morgan Stanley, as well as smaller firms like Tricadia Inc., an investment company whose parent firm was overseen by Lewis A. Sachs, who this year became a special counselor to Treasury Secretary Timothy F. Geithner.

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Among the most aggressive C.D.O. creators was Tricadia, a management company that was a unit of Mariner Investment Group. Until he became a senior adviser to the Treasury secretary early this year, Lewis Sachs was Mariner’s vice chairman. Mr. Sachs oversaw about 20 portfolios there, including Tricadia, and its documents also show that Mr. Sachs sat atop the firm’s C.D.O. management committee.

From 2003 to 2007, Tricadia issued 14 mortgage-linked C.D.O.’s, which it called TABS. Even when the market was starting to implode, Tricadia continued to create TABS deals in early 2007 to sell to investors. The deal documents referring to conflicts of interest stated that affiliates and clients of Tricadia might place bets against the types of securities in the TABS deal.

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cont on link..

http://www.nytimes.com/2009/12/24/business/24trading.html?pagewanted=4&_r=1
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Good point. SEC should be going after others as well. The criteria appears to be this "defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages" I'm sure they can charge many more
 
Com on, we all know what will happen.

GS will pay some large fine 300-500 mil (large in the eyes of a public, rather small in their terms). If convicted they will issue the apology and maybe 1 or 2 people will go to jail.

Just a small cost of doing the business.
 
Quote from Daal:

Dont worry Lloyd Blankefein will announce he has insurance against legal actions and they are 100% hedged against this event
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God will not allow harm to come to GS :D
 
Quote from olias:

Good point. SEC should be going after others as well. The criteria appears to be this "defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages" I'm sure they can charge many more
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Perhaps, since "everyone was doing it" the SEC charges the biggest and the best, GS takes all the heat, sort of like a class action SEC vs GS (WS practices) GS wins SEC doesn't charge anyone else with fraud for these practices.

Maybe GS has more defensible defense rather than the others WS cos.
 
The difference between people committing fraud and crimes and corporation doing the same.

If a person offers to settle the charges in the form of any type of payment it would be a bribe. Corporations can pay fines/bribes and continue on with there merry ways...
 
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