1 uh oh... this report will land you in one of the camps.

2 Not just any S&C attorney, Goldman hired former Williams & Connolly partner and former White House Counsel, Greg Craig.  That has to be a touch of the f you to the WH from both GC and Goldman.  Craig is a political animal who is formerly a Clinton-guy.  He could be out for some payback.

3
As much as I hate the thuggery and overreaching of the Obama admin, part of me is happy these turds are getting hoisted. Maybe that'll teach that if they get into bed with dogs they'll wake up with fleas.

So it's nice that the Democrats are turning on the douchebag corporations who think they can sell us out and get away with it by buying protection from the Democrats.

4 $1.4M is not a big problem by any means, that's a fraction of what the B+ Precedent saved or created before his first cig of the day.

5 PA, do you care to tell me how a couple folks will go to jail... over an SEC civil lawsuit?

6 He'll probably end up giving it back for appearances because Lord only knows how much foreign money he received during his election campaign.   A $900k donation from GS is probably just a drop in the bucket of what he received from overseas.

7 There will be criminal charges eventually.  I'd bet my life on that.

8 It's only a problem if someone brings it up.  So, I'm not seeing any problem here.

9 A $900k donation from GS is probably just a drop in the bucket of what he received from overseas.

FEC never looked into that, did they?

10 If I like my million dollars, I can keep my million dollars!

11
lol @ the notion Obama will give back the $$

Obama's greatest attributes, that which makes him a great politician, is he's shameless and unaccountable. Obama will never give back the money.

12
Yeah, somehow don't see this getting much coverage on the 6 o'clock news.

13 As much as I hate the thuggery and overreaching of the Obama admin, part of me is happy these turds are getting hoisted.

And there's your "quo."

GS gets fake-hoisted, buying Obama a minor news-cycle win, even with us types, then he gives GS more of our money.

And by "then" I mean "always, now, and always." That pipe never sits dry.

GS would also make a formidable political enemy for Obama should the punishment be deemed too stiff by GS.

Pure deadpan humor is a gift. You have it.

14

Does he give back the ~$1M in donation money, thus demonstrating to any future corporate contributors that he won't stay bought (my definition of an honest politician/judge is one who stays bought), or is he an unreliable weasel that you can only rent by the hour like rooms at a hot sheets motel,where clean sheets are going to cost extra?

I'll take unreliable weasel for $1,000, Alex.

And for anybody wishing to make Enron comparisons, GS employees gave 7x times more to Obama than Enron employees gave to Bush.

15

Not to worry, the marxists and GS are partners in crime.

There is no doubt this was all worked out far in advance.

The Moron uses them as a whipping boy, probably even assesses a big fine (which will be 1/100th of GS's criminal heist), and the GS'ers have to look properly chastened in the congressional show trial.  All GS gets out of it is the ability to keep 99% of what they have already stolen.....plus mega-billions in the future.

The chances of anyone of significance going to jail are a ha ha.  If some of the devils over at GS have crossed the top-guns, they might be sacrificed to jazz up the show.  And of course, there will be a few suicides of expendable or uncooperative participants.  That's it.

16 The DemonRats will find other donors -- there are plenty of limousine liberals out there. The MSM will ignore the story, most people don't understand what's going on and don't really care, and the lefty propagandists will continue to call the GOP the party of Wall Street, and do so with a straight face. Status quo, in other words.

17

#11  FEC never looked into that, did they?

I heard a "boy" somewhere in that, dirt-stealer.

18

I would like to take this opportunity to invoke the Lewinsky Rule entitling me to hate everyone involved in the GS scandal.

 

 

19

GS gets fake-hoisted, buying Obama a minor news-cycle win, even with us types, then he gives GS more of our money.

You're 100% right and I hate that you're right.

Washington D.C. Needs an Enema!

^{btw, that would make a great sign}

20

You're missing the point here:

The Democrats need someone from Wall Street to fall on their sword to help sell the new financial regulatory scheme that Dodd and Congress intend to pass. 

That bill will:

1)  vastly increase government control of the US financial industry and

2)  protect the Big Boys like Goldman from foreign and domestic competition.

This is a political stunt of the nastiest kind.  It is also a reminder to all in the financial world that the government can indict and hence RUIN anyone they want too, regardless of guilt or innocence.

We're seeing this right here in Silicon Valley with the prosecutions of various executives for back-dating of stock options.  Perfectly legal but they've proved that you can still be ruined with lawyer fees in defense and still still sent to jail.

21 So what are you saying? That Obama can't be trusted? Yeah like I didn't know that.

22
And of course, there will be a few suicides of expendable or uncooperative participants.

Oh yeah, aspirin futures look promising.

23

Heh heh.  Well, now that we know GS is in bed with the most corrupt regime in US history, we should all scurry to buy their stock while it's temporarily down.  You know they're not going to be punished in anything but a symbolic way.

24 As I understand it, its just a civil suit to a maximum of 3X their fee which would amount to $45 million.  That will turn out to be a pittance for to the billions they made with the other policies as well as the coming financial "reform".

Corruptacracy.

25 "Problem"? What problem? I don't see any problem! I don't have to look at any stinkin' problem!

26

In the beginning, the Jews under Hitler figured it was just some public posturing he needed to do to stay more popular than the communists.  Some of them even supported him!  (he was a socialist, after all)  They figured after a little while he would get what he wanted and then they could all go back to business as usual.   And they decided it was really no big deal, nothing to get worked up about - and when it *did* become a big deal, it was too late to do anything to stop it.

Now I'm not saying that Goldman persecution by Obama is like Hitler's persecution of the Jews.... oh hell yes I am. 

27 Don't bet the farm on criminal charges. The suit is weak tea as it is.

28 The chances of anyone of significance going to jail are a ha ha.

There's a few powerful Senators with a hardon for GS.  That means someone goes.

That's really just for appearances though, and its not particularly traumatic for the designated fall guy.  They'll be sent to a country club joint like Eglin where they can play Bocci and Tennis all day and where there's no prison cells.  GS will make sure they're well "taken care of" in retirement for doing that duce and taking one for the team.

29
Lewinsky Rule entitling me to hate everyone involved...

hmmm, I guess that includes Linda Tripp? I guess so, she was, after all, a Clinton employee and a sneak.

30

Obama could simply sign the 'Nobel Peace Prize Check' over to GS and tell them to keep the change.

31 You following the Lehman thing on cpac , PA ?

32 That was a great analysis, P.A.

33 i read the articles in the wsj and ibd......i'm sorry, i don't get what goldman sachs did wrong.......they sold mortgage backed securities to people who wanted to buy them and should have done their homework on them before purchasing......they also developed a hedge fund for a client who did his homework and knew that the mortgage backed securities were not a good investment............

34 And the medias' outraged response is............*chirp, chirp, chirp*

35 Then there's this:

--The Commission approved the Goldman suit in a vote that spit along party lines – a rare occurrence for approvals of enforcement litigation.

--Before the Commission had released its announcement, the New York Times published on its website a story describing the suit.

--Less than half an hour after the Times story’s publication, Organizing for America, the successor organization to Obama for America and now a project of the Democratic National Committee (“DNC”), sent millions of supporters an e-mail message from President Obama urging support for “Wall Street Reform.”

--Within hours, the Democratic National Committee had purchased AdWords advertising from Google, Inc. The DNC’s Google campaign fundraising advertisement, headed “Fight Wall Street Greed,” appeared whenever a user ran a Google search for the phrase “Goldman Sachs SEC.” It read, “Help Pres. Obama Reform Wall Street and Create Jobs. Families First!” and included a link to www.BarackObama.com, the website of Organizing for America.

--Democrats in Congress and the Administration have heralded the CommissionÂ’s suit against Goldman as a welcome boost to their case for the legislation.

--Members of the media have already begun to question the timing of the CommissionÂ’s suit and the actions of the Democratic National Committee.

36 You ought to supply the link: here.

37 22

You're missing the point here:

The Democrats need someone from Wall Street to fall on their sword to help sell the new financial regulatory scheme that Dodd and Congress intend to pass. 

That bill will:

1)  vastly increase government control of the US financial industry and

2)  protect the Big Boys like Goldman from foreign and domestic competition.

This is a political stunt of the nastiest kind.  It is also a reminder to all in the financial world that the government can indict and hence RUIN anyone they want too, regardless of guilt or innocence.

We're seeing this right here in Silicon Valley with the prosecutions of various executives for back-dating of stock options.  Perfectly legal but they've proved that you can still be ruined with lawyer fees in defense and still still sent to jail.

Posted by: Whitehall at April 20, 2010 03:50 PM (htrmr)

I'm with whitehall

38 Sullivan And Cromwell know where all the dead bodies are buried all over Wall Street. Since there is a revolving door between Wall Street and Washington DC, one would suspect they know where all the dead bodies are in DC too. Then there is this, unearthed by Rush Limbaugh today. http://pointsandfigures.com/2010/04/20/gross-gangster-government-at-its-finest/ You cannot be cynical enough about Washington.

39 GS would also make a formidable political enemy for Obama should the punishment be deemed too stiff by GS. Would he really want them throwing their considerable weight behind a Republican in 2012 if they felt betrayed?

Considering widespread anti-Wall Street sentiment, wouldnt that actually be an advantage?  Obama could easily point out his heavy-handedness to "fix the mess he inherited" and point out that they are throwing their corrupt weight behind the R's, "to go back to business as usual".

40

"... that you can only rent by the hour like rooms at a hot sheets motel,where clean sheets are going to cost extra?"

How much extra, and how does one learn these lessons?

41

given that Goldman lost money in this deal as well it would be a pretty tough sell to get a criminal conviction ...

by going civil the SEC showed they didn't have a criminal card to play ...

It may be that Paulson rigged the deal for his own gain but to "prove" GS knew he was rigging it is a big stretch ...

 

 

42

Its clear someone needs to go down over the GS scandal. At minimum, for appearance sake, someone has to go to prison for a couple of years and some fines have to be levied.

PA, there's this skinny black guy that's always putting on the WH lawn.  I'd just snag him for the unfortunate incarceration and call it even.

43 I really don't think Goldman employees necessarily expect anything in return for donating to Obama.  There's no shortage of cognitive dissonance among front office Wall Street types, and Goldman is a historically Jewish firm which I can only imagine - like Hollywood - intensifies the pro Democrat culture.

44

I'd predict some sort of consent agreement with GS might be part of the "penalty"

What's a consent agreement?

45 I think you're being a bit naive here, Avenger. This will not change a thing. GS does not care about fines or punishment or bad press. They care about crafting legislation and having the defacto backing of the us government for access to cheaper credit. Both Democrats and GS will get what they want out of this with very little cost to them.

46 There is a real poison pill in this Financial Reform package - it's provisions on derivatives and non-standard contracts will hurt the energy and aviation industries. They rely on hedged contracts for long term stability in fuel prices - like 30y natural gas hedges, etc. Without the inability to address the risk of gas and fuel price changes, prices will have to go up. Go up, like 8-12% to the consumer.

47 Don't bet the farm on criminal charges. The suit is weak tea as it is.

Facts hardly matter here.  This will never get to trial where facts would matter.  I think the buyers and AIG were stupid for not doing their own due diligence. 

48 Wait, is this money donated by G-S, or the aggregate of money donated by G-S employees?  I think the former is illegal, so it's the later, n'est pas?

That makes it kind of a non-issue.

49 Lame Stream Media: But Wall Street bankers are ALL evil Republicans!!!!

50 fingered from the intertubes:

Darrell Issa has decided to turn the tables, and is demanding all correspondence between the Syndicate Encouraging Corruption and "White House aides, Democratic Party committee officials, or members of Congress or their aides" Politico reports.

51 Obama could simply sign the 'Nobel Peace Prize Check' over to GS and tell them to keep the change. -- What charity did he give that money too?

52 Your know, Coulter had a column about the GS and other firms getting bailed out. Quite a sweet gig, all the rewards without the risks. Not a news story, of course, because it was Clinton and Obama doing it, but still, maybe one day someone will learn from past mistakes.

53

Goldman Sachs?? Pfft..you'd think they would be thanking me.

{said with a shit eating-wry grin} 

54 Obama could simply sign the 'Nobel Peace Prize Check' over to GS and tell them to keep the change.

Most of it went to minority college funds and other ed groups.

55 I think you're being a bit naive here, Avenger. This will not change a thing.

I never said it would change anything.  I fully expect a negotiated deal that appears tough but in reality isn't. 

What's a consent agreement?

GS would say "my bad" and promise to not do it again, in return DOJ might hold back on any serious rectal exams.

56 Is, or is not, Obama pretty much a hybrid clone of Mayor Royce and State Senator Davis from the Wire?  Sheeeeeeiiiiiit, hell no you ain't gettin' no money.  That's my peoples money.

57 Anyone figure out who shorted GS before this announcement yet?

58 That makes it kind of a non-issue.

Until you start digging into where the exec/employee money came from and the timing of donations.  Neither GS or Obama wants that to happen.  They'd start finding out that some dude got a special bonus of $2,500 and curiously the next day made a $2,500 Obama donation.

59

Jeff's ;link..

goldman sacs, google , white house buying sec and goldmans re-direct  site goes to WH campaign  website. by political dnc arm.

60

http://preview.tinyurl.com/y5gpqj3

Rush speaking

Jeff's ;link..

goldman sacs, google , white house buying sec and goldmans re-direct  site goes to WH campaign  website. by political dnc arm

61 PA, surely you jest -- the bonus comes after you make the donation.

62 Neil Barofsky is now on the case, and, unlike the SEC, may collaborate with the Department of Justice "to see if there are cases of fraud and if AIG and as a result, the American taxpayers, were victims of similar types of fraud." Should he find fraud, and let's not forget that Goldman bought protection on all parties that bought Abacus exposure from it, with a special place in its heart saved for AIG, whose bailout by the US kinda makes all claims that Goldman lost money on its Abacus exposure moot.

63 Well, His Nibs managed to fuck up my morning commute today.  So now I hate him on a personal level, too.

64 Anyone figure out who shorted GS before this announcement yet?

If SEC and DOJ were smart, it would be GS that shorted GS and the fines would have been pre-negotiated to correspond to pretty much whatever the profit from those trades was.  That makes for a "big" looking fine that essentially cost the GS bottom line nothing.

It can't possibly be a coincidence the announcement "just happened" to be made the same day that options expired and later in the day.  I don't believe in such coincidences.  Clearly the SEC and DOJ were timing the announcement to maximally benefit someone financially.

65
Anyone figure out who shorted GS before this announcement yet?

GS?

66 Regardless, don't you love seeing Obama between a rock and a hard place?

67

  I don't believe in such coincidences.  Clearly the SEC and DOJ were timing the announcement to maximally benefit someone financially.

So, you agree!

68
don't you love seeing Obama between a rock and a hard place?

Unless this is getting trumpeted on all the networks, the cables, and the e. coast newspapers there is no 'hard place'. 

69

_{there is no 'hard place'.} 

I beg to differ, Sir!

70 PA, aren't the maximum contributions capped in the low four digits?

71 PA,
You don't seem to have any grasp of the facts.  Are you aware GS has been slapped with Civil Charges?  OJ lost on the civil, and shockingly did not go to jail (for that crime).  Most neutral legal observers have noted the gov's case is rather weak.  They've been pushing GS toward a settlement for months and the Goldies told them to pound sand.  Granted that may change, but GS never would have staked that position out if they did not believe they were in the clear.
Note, why no mention of the timing?  The admin is pushing hard to slam the bullshit Dodd bill through.  Although it is many things, financial reform it is not.  Think more along the lines of pushing all our Global IB's in the direction of the GSE's.  That is, make JP Morgan Chase more like Fannie and Freddie.
Second point on timing, see today's WSJ editorial page.  The SEC was caught red handed ignoring the Sanford ponzi scheme.  As far back as 1998 SEC staffers recommended further investigation as they believed he was running a ponzi scam.  7 Billion lost since the powers that be decided to look the other way.  Interestingly that news was pushed off the front page by the sudden surprise release from the SEC.  Things that make you go hmm.  Anyway you should dig a little more, this one ain't an inch deep.

72

Its clear someone needs to go down over the GS scandal.

The question is, will anyone go down over this?  From what I've seen, this is merely a civil suit by the SEC and not a criminal indictment--which probably explains why GS' stock started going up again after the initial drop after the announcement.  Even in this crazy market, I don't think that would be the case unless people connected with GS figured that this thing wasn't going anywhere.

GS would also make a formidable political enemy for Obama should the punishment be deemed too stiff by GS. Would he really want them throwing their considerable weight behind a Republican in 2012 if they felt betrayed?

GS wouldn't even have to wait until 2012--their fingers are in so many pies they could probably dump the market at the drop of a hat if Obama actually decided to get tough with them.  The only real metric of the economy that the administration could point to that's had ANY signficant improvement over the last year and a half is the stock market.  If GS decides to play reindeer games, they could instantaneously destroy any remaining perception of economic recovery that's been promoted. 

Ultimately, this whole episode looks like a "too little, too late" attempt by the administration to "get" Wall Street and try to salvage some of whatever public mojo they have remaining before November.  If Obama really wanted to go after these guys, he could have done it easily last year when people were still pissed off about TARP and the plummeting stock market.  During the WaMu hearings, the term "fraud" came up constantly, yet there have been no indictments--GS's funny business in regards to AIG and Lehman should be easy pickings for someone who made his political name by demonizing financial institutions.  Yet, despite having the SEC, the FDIC, the Attorney General, and the FBI to all bring to bear against GS, this silly lawsuit was the most they could come up with.

GS seems to have measured Obama a long time ago, and I doubt they would make the mistake of throwing that much money at someone whom they thought would suddenly turn on them, although I'll concede it's always probable that he may do so out of sheer desperation to save his Presidency.

73

don't you love seeing Obama between a rock and a hard place?

Unless this is getting trumpeted on all the networks, the cables, and the e. coast newspapers there is no 'hard place'. 

He is still in a quandry.  In a sticky spot, whether the MSM wants to admit it or not.

74 Anyway you should dig a little more, this one ain't an inch deep.

When a particular case is brought for political reasons, FACTS DO NOT MATTER.  You must live in some fantasy world if you believe they do in this case.

There are Senators gunning for GS that MUST be appeased.  That means designated scapegoats must be produced and suitably vilified/prosecuted.

75 I agree he is in a bit of a sticky spot even if left wing media doesn't promote it, a full day drudge headline goes miles.  I don't however think Goldie Sacks is at any risk at all, any fine will be made back in multiples.  Corruptacracy.

76 they also developed a hedge fund for a client who did his homework and knew that the mortgage backed securities were not a good investment.. Posted by: phoenixgirl

Just check out Zerohedge any given day for reference. Yes, a lot of their articles are huffy-puffy ZOMG! financial conspiracy stuff, but they do point to problems at GS and Wall Street in general.

The scandal from last week was that Paulson's company was contracted by GS to put together a financial product using sub-prime mortgage backed securities. Paulson made the product, got paid and then promptly bought CDS in a bet against the product knowing that it would likely blow up. While not exactly insider trading, it's pretty damn deceptive.

It's partially a problem of proprietary traders like GS betting against products that they recommend to customers (aka investors). It's part of the consequence of Clinton's ending the Glass-Steagall Act that required financial firms to have some sort of division between trading and banking.

77

Yes, Whitehall nails it. Goldman and the other majors have been gaming the regulatory system for years. They drool as the Feds slap on layers of regulation that only the largest firms can afford to comply with. They squeeze out their smaller and nimbler competitors and the resulting liquidity squeeze causes spreads (margins) to gap.

But PA's correct also. The "reformers" are way out on a limb here and they're not coming back without scalps.

78 "What's confusing you is the nature of my game."

79 McCarthy seems to believe facts matter.  They don't.  This will never get near an actual trial where they might matter.   

80 purple avenger. show us yer vadge luv!

81

proreason @ post #17 nailed it in my opinion... basically what I was going to say, only said better..... Brooklynites don't have command of the Kings's english even though it's Kings County.

I would be impressed if Greenspan, Frank, Bernake, Fuld and a host of others actually did hard time along with civil and criminal penalties... anything less is a show.

GS Sucks Zero's schwanz and visa versa.

Freddie & Fannie don't even get seriously looked at even though the malpheasance is a hundred times greater than AIG, Lehman, WaMu and Countrywide combimed..... don't forget Bear Stearns... collateral damage.

82

This is a political prosecution, useful as background noise for the reform bill efforts. 

GS is accused of withholding the fact that there was someone else on the other side of the transaction.  Because of the synthetic nature of the CDO's this is the ONLY way that such a deal could be offered.  By the very nature of the deal there had to be someone betting the other way.

These are sophisticated investors -- with teams of MBA's from top ranked programs on both sides of the deal.  They all knew what they were doing, even if politicians can pretend that they didn't. 

And as it turns out, Goldman did have an opinion on who was being smarter.  They lost $90 million betting with the losers.

83 Since they never disbanded their campaign they have oodles of money, giving this back would probably not even make a dent..Those little contributions eventually add up just like you can't get out of walmart for under fifty bucks...

84 #87 Perfectly put- this is a weak case that was specifically brought for political gain by the Thugocracy. Cow a few spineless RINO's , gin up the old "mom and pop got screwed by evil Wall Street" B.S, and ram home another Government power grab of a vital industry. That's the Chicago way.

85 Obow-wow is taking on some smart guys with more money than god...I could care less given that Wallstreet welcomed this Soros puppet as a Presidential candidate...The collateral damage could get interesting given that Obama has more skeletons in the closet than John Wayne Gacy...Take your pick, foreign passports, birth certificate, communists party ties, Soros ties, ghostwriter Bill Ayers...I suggest they hire the Clinton smear machine and go after Obama with a blowtorch and a pair of pliars...

86 Yeah, it's theater for the latest "reform" bill. What a coincidence these two events happened the same week! What a coincidence Fannie and Freddie are left out of the bill! The bill will help GS and hurt their competition; they will get what they paid for.

87 The GOP needs a reform bill of its own.The MSM is already painting us as for the bankers, and low information voters assume the GOP is that way anyhows... Markets over Companies...i.e. no more TBTF. No more bail outs.

88 PA,
Really too cute, almost to the point of being lazy with "The Facts Don't Matter..."
Ah, but sometimes they do.  Remember when Chairman Waxman was going to public berate those damn capitalists that dared to comply with SEC and GAAP accounting rules?  Someone broke the news to him that they were following the letter of the law, and quietly bagged his dog and pony show.
In this case the facts are decidedly one sided, and Goldman's franchise is at stake.  The CEO will pop up for hearings on the Hill, saying all the right things but pushing back on this.  The SEC will be left begging them to settle.  50/50 it gets dropped on a summer Friday evening, press will be only to happy to look away.  Perhaps it will be Sasha bday.  Facts matter because the G is asking GS for a favor here.  Goldie has the hammer, if you don't see that you need a cup of joe. 
By the way, keep an eye on the verdict in SEC vs Rorech, going on now.  Big publicity asked the DB salesman, guess what?  He is going to win in rout.  Lesson to all with big pockets:  DO NOT SETTLE!!!

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