A Double-Edged Sword

Text-only Version: Click HERE to see this thread with all of the graphics, features, and links.



Moscow
Below this comment, you will find an article written by Gretchen Morgenson. She is an economic analyst for the New York Times. She published this piece both in that newspaper and in this economic blog called The Automatic Earth.

The Securities and Exchange Commission has grabbed a set of cojones from an old musty chest in the attic and have indicted supergiant investment bank Goldman Sachs with massive fraud. This is the first step in reigning in order and stability to a devastated financial community; however, no main figurehead of the Wall Street community thus far is under direct attack, and there is a sharp divide on partisan lines with even some conservative Democrats sharply hesitant at indicting strong members of the banking cartels in New York City.

Lloyd Blankfein may lose his job but not without a hefty severance package. The Obama administration is stuck to the gills with former Goldman and Rubinomics staff, and the entire assembly of Congress is backed up by Goldman money.

But, alas, we have something to celebrate. Goldman shares dropped 13% on Friday. Oil prices staggared downward as a result of the SEC probe. JP Morgan, Citigroup and Deutche Bank became sloppy scared at the mention of the SEC hearing.

If we had real leaders, they would take this SEC nugget and drive it straight into the heart of the banking mess and then cure it into a more beneficial state of practice.

Well... that being said... here's the piece by Morgenson. It's long but well-detailed. If you don't care to read then don't write on this thread saying you have ADHD or are too damn lazy or whatever. For those who want to read, read and then post intelligently afterwards.

This is a very important topic.

Moscow
S.E.C. Accuses Goldman of Fraud in Housing Deal by Louise Story and Gretchen Morgenson

Symmetric Chaos
I'll go blind reading that. Mind adding spaces to it?

Moscow
Sorry. It's reworked now

Ultraviolence
I'm so surprised.

King Kandy
This impresses me more than anything else Obama's done. Way to go.

Bicnarok
is there a short version?

Moscow
Originally posted by King Kandy

This impresses me more than anything else Obama's done. Way to go.

I agree. It's the first real stab at reigning them in. We need more of this.
Originally posted by Bicnarok

is there a short version?

What... of the article? Basically, the SEC indicted Goldman Sachs with fraud and charged specifically one of the members with full institution of it. It is a civil law suit, so no criminal charges will be filed against them. The hope is that will change sometime soon.

Moscow
We've got a second foray here against Wall Street.

Apparently, it comes from the Senate Agricultural Committee of all places:



This portion came from the Automatic Earth. The longer version is here:
http://www.nytimes.com/2010/04/20/business/20derivatives.html?src=me&ref=business

Text-only Version: Click HERE to see this thread with all of the graphics, features, and links.