"The government has accused Goldman Sachs & Co. of defrauding investors by failing to disclose conflicts of interest in mortgage investments it sold as the housing market was faltering.
The Securities and Exchange Commission said in a civil complaint today that Goldman failed to disclose that one of its clients helped create — and then bet against — subprime mortgage securities that Goldman sold to investors."
I hope they burn!
Moving thread from IMHO to The BBQ Pit.
Clearly this will be a big win for a lot of lawyers and related consulting services. Hopefully the ones I work for.
Ah, the mighty, benevolent Invisible Hand.
The SEC’s batting average these days is not exactly stellar. Don’t be surprised if Goldman skates.
It is amazing that they even are pressing the issue. It is hard to find a friendly court for the government.
And if they don’t? Ooohhh…some billions. Poor Goldman. That might takes WEEKS to make up!
-Joe
One of the reasons for the hand being invisible is so that you’ll never know when it’s giving you the finger. It may be called free enterprise but someone has to pay for it.
The system has been gamed and distorted to serve the bankers. They had the money and lobbying power to dismantle regulation ,throwing the doors open to any kind of financial instruments they could dream up. They dreamed some beauties up.
A few years ago, it was revealed that the financial experts on TV were pushing products that they profited from or were working for. Now they have to put a disclaimer on the shows. Whoopie. They were revealed as cheats and got away with it. No punishment.
When the instruments they sold the last few years were over 400 pages , you have to understand that obfuscation was the name of the game. You had to trust them to have your interests in their hearts. How dumb was that?
When Paulson came up with a 3 page act, giving him power over the Treasury and making him exempt from the law, many people were willing to go for it. We are just a nation of suckers voting against our own interests over and over.
This is who the tea partiers should be going after.