April 2010

So Goldman Made Dough from Suckers?

So what's new from Wall Street? The Goldman Sachs emails? So the rogues cheered  as the housing market's decline  -- found joy in the misery of others? And  the rogues played a part  in creating that misery? Is that news?

Today's Washington Post reports that, "As the U.S. housing market began its epic fall nearly three years ago, top executives at Wall Street powerhouse Goldman Sachs cheered the large financial gains the firm stood to make on certain bets it had placed. ..for example, Goldman executive Donald Mullen predicted a windfall because credit-rating companies had downgraded mortgage-related investments, which caused losses for investors."

Know-it-alls can't tell right from wrong

Through the clear eyes of plain common sense, Steven Pearlstein in today's Washington Post looks at those Wall Street sharpies who are lining up to defend the good old boys at Goldman Sachs in its rumble with the SEC. Mr.  Pearlstein writes, "Wall Street's know-it-alls can't tell right from wrong. --  I honestly don't know whether Goldman violated Section 10(b) of the Securities Exchange Act of 1934. What I do know is that the facts outlined in the government case are a powerful and convincing reminder of Wall Street's complete and utter amorality. There, concepts like truth, justice, fairness, trustworthiness, duty of care, right and wrong are now totally without meaning. There is only buy or sell, long or short, win or lose."

Goldman Sachs does Fraud, says SEC

This morning, I received the newsflash, "SEC (Securities and Exchange Commission) Accuses Goldman Sachs of Fraud on Mortgage Deals."

My response was: Investment bank? Fraud? Is that news? Then I thought: Well maybe the news is, that the SEC are the ones doing the accusing? I read the item, "In a civil suit filed Friday, the SEC accused the investment bank of securities fraud over a deal in which Goldman profited from bets against products it sold to customers."

Back up. A civil suit?