Financial and securities regulations, or lack there of, did fail, again.
... Separately, Goldman Sachs announced early Thursday that the Securities and Exchange Commission had ended an investigation into a $1.3 billion subprime mortgage deal, taking no action. The move was an about-face for the commission, which notified the bank in February that it planned to pursue a civil action. “We are pleased that this matter is behind us,” a bank spokesman said Thursday.
The moves closed a difficult chapter for the bank, whose missteps became emblematic of Wall Street’s excess. But for all the public criticism of the bank, the only law enforcement case to have surfaced against Goldman was a civil case that the bank settled for $550 million in 2010 over a mortgage investment that investigators said had been intended to collapse.
.
“Mortgage
products were in many ways ground zero in the financial crisis,” Robert
Khuzami, the agency’s enforcement director, said at a news conference
for the task force. The agency, along with other federal
regulators and the Justice Department, is also pursuing an array of
other cases stemming from the financial crisis. Goldman is not yet off
the hook for its part in the Fremont deal." New York Times/Ben Protess and Azam Ahmed, 8/9/12. "SEC and Justice Department end mortgage investigations into Goldman." Read Article.
In this case "The department and investigative agencies ultimately concluded that the
burden of proof to bring a criminal case could not be met based on the
law and facts as they exist at this time," the department said."
Background. "A Senate subcommittee chaired by Sen. Carl Levin
in April 2011 found that Goldman marketed four sets of complex mortgage
securities to banks and other investors but that the firm failed to tell
clients that the securities were very risky. The Senate panel said
Goldman secretly bet against the investors' positions and deceived the
investors about its own positions to shift risk from its balance sheet
to theirs.
Reference - Wikipedia overview of "too big to fail." Related Article - CBS Money Watch article/Larry Swedroe, 6/6/12.
Posted by Kathy Meeh
13 comments:
Umm ever care to google and find out how many Goldman people are in Obama's cabinet and who have high level Jobs in Washington DC?
So does the Muslim Brotherhood. They are directing decisions in the Pentagon. Sharia Law.
Anonymous, 7:30 AM, why don't you find out how many Goldman people have been in government during the past 4 Presidential administrations. And while you're at it, during the same period, find-out why government and the SEC failed to make reasonable regulations preventing the "too big to fail" financial disaster. Also do a serious economic policy review of the prior Presidential administration.
Funnypaper Anonymous 11:06 AM, seriously how about getting your information from credible sources, rather than whacked far right nutcase websites. And when you repeat such idiocy, do give us the source link so we can have a good laugh.
http://my.firedoglake.com/fflambeau/2010/04/27/a-list-of-goldman-sachs-people-in-the-obama-government-names-attached-to-the-giant-squids-tentacles/
From the White House. Try visiting their website.
"..how many Goldman people are in Obama's cabinet" Anonymous 7:30 AM, 4:46 PM.
Thank you for answering your Obama administration question in response to my 4:08 PM query: "Why don't you find out how many Goldman people have been in government during the past 4 Presidential administrations." And its okay that your 1 of 4 Presidential administrations research comes from Firedoglake blog, 4/27/10, which includes "giant squid tentacles" in the title.
Here's the reason high level PAST Goldman Sachs employees have been asked in to handle sophisticated government money strategies. Goldman Sachs expertise includes institutional investing (big money). They are not the local brokerage for the guy who walks in off the street. And that's the reason past Presidential administrations have also hired these high level PAST Goldman Sachs employees.
By late 2008 the financial web that holds this country's economy together was in free fall. But the article clams PAST Goldman "infiltration" of the government by "the usual suspects like Larry Summers, Timothy Geithner, Rahm Emanuel, Gary Gensler and Mark Patterson", etc. This time guess others missed out on these really great jobs: 24/7 on call, failing economy. Then, a lingering fragile recovery, obstructionist Congress. And, don't forget the job pays less than private industry, with no Wall Street bonuses, just a good pension.
Big financial contributions to political candidates from powerful individuals and corporations? Yes that exists. Prior to more recent polarized politics and unlimited PAC money, a good strategy was to hedge your bets and contribute to both sides. Win, win.
Kathy, do you think Obama walks on water and does no wrong?
Anonymous 9:01 PM, do you look for rainbows under a rock?
Kathy, do you live under a bridge?
All you have to know is how many Wall St. financiers have gone to jail for their crimes.
The answer is zero. They own the government, lock, stock, and barrel.
Kathy how much you wanna bet there are no rainbows in the life of 901 anon?
Not a lot of wingnuts in cabinet positions. Deal with it!
Lionel the head of that pin isn't crowded but what about Bernie Madoff-with-all-your-money?
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