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Goldman Sachs Charges Drive Mkts Down

From Bloomberg:

The new Goldman Sachs Group Inc. global headquarters, also known by its address as 200 West Street, is pictured in New York’s lower Manhattan April 7, 2010.

Financial Shares Tumble After Goldman Sachs Charged With Fraud

April 16, 2010

By Michael P. Regan and Lynn Thomasson

April 16 (Bloomberg) — Financial shares tumbled after the Securities and Exchange Commission charged Goldman Sachs Group Inc. with fraud related to packaging and selling collateralized debt obligations linked to subprime mortgages.

Goldman Sachs, the most profitable firm in Wall Street history, tumbled 10 percent to $165.02 in New York Stock Exchange composite trading at 11:12 a.m. in New York for the biggest intraday decline in a year.

A gauge of banks and brokerages in the Standard & Poor’s 500 Index sank 4.3 percent for its biggest decline since February 4 and the top loss among 24 groups. Bank of America Corp., Morgan Stanley and JPMorgan Chase & Co. lost at least 4.3 percent as all 27 companies in the S&P 500 Diversified Financial Index declined at least 1.7 percent after the SEC announced its action. Berkshire Hathaway Inc. Class A shares tumbled 5.1 percent.

Goldman Sachs misstated and omitted key facts about a CDO as the U.S. housing market was beginning to falter, the Securities and Exchange Commission said in a statement today. The SEC also sued Fabrice Tourre, a Goldman Sachs vice president…

Like the Roman Catholic church did to Galileo, Mr. Obama is showing Goldman Sachs his instruments of torture.

This is to head off any objections from Goldman Sachs and the rest of Wall Street.

They will agree, ‘sure – the world IS flat.’

This article was posted by Steve on Friday, April 16th, 2010. Comments are currently closed.

12 Responses to “Goldman Sachs Charges Drive Mkts Down”

  1. proreason says:

    GS loves being the whipping boy as they pockets billions.

    For those of you who don’t know, GS somehow made enormous profits in every financial bubble of the last 100 years….13 or more times, including the latest random event in September 2008.

    The odds of betting correctly 13 straight times are over 8 million to 1.

    They sure are lucky.

    • tranquil.night says:

      We forecast this and began the financial reform debate pretty well 4 months ago Pro.

      “Part of me says it’s always been the secret objective of these groups to expose “the dark side of capitalism” by living it – with the desire having always been to run themselves and the system into the ground in the end. It certainly seems to correspond with that marxist idea of “revolution through financial exploitation.”

      Obviously we’re talking about more culpability than just Goldman Sachs too. It’s just this has been a huge scheme on the part of a small group to expose the strong private banks and insurers to crushing regulation [pick an issue & find that’s the strategy]. Wells Fargo, Farmers, etc. That’s what scares me.”

      “I think [SEIU] Stern is setting himself up to be a sacrificial lamb that the Moron can skewer to trick the public into thinking the little boy king has become a centrist.” Wow did you see that more than you even knew!

      In February I said the market could tumble to 7000. It’s not going to happen even if Government-Sachs is taken down I realize now because our private sector IS the last bastion of security and wealth right now. But “they” have rigged our economic foundation with government-union debt bombs at the state level, the federal level, heck even the world level. The same scams and fraud perpetrated over and over; “accounting tricks” masking billions in unfunded liabilities – and we’re still passing bills using these same tricks.

      I’ve always struck a different tone on Goldman because I’ve always believed the facts indicated they were absolutely aware of and involved in the whole scheme even if government was the instigator. This isn’t your typical left vs right, pro vs anti-wall street issue, that’s a trap; Obama knows it – all Marxists do and that’s why they always return to this group specifically when looking to misdirect rage. In this ocean of sharks, there is a group that plays by a different, more conservative set of market ethics – the private banks and credit unions. This is about slipping the noose around them, like always.

      Wall Street is Obama Street. I’ll say it bluntly: before the investigations are even done we’re going to know that the government cleared the playing field of Goldman’s big competitors via the bailouts and then let them run amok feeding as many market bubbles as they could before the hammer came down (i.e. when Obama needed a new demon). We’ll know it because we’ll be living it by then. But at least it’s mainstream knowledge that they’re eagerly expediting us towards that day when the dollar is worthless.

      Obama needs chaos. This cheery non-threatening Tea Party momentum might really be having too much of a reality check effect for our pie-in-the-sky kinglette!

      Therefore I’m not so sure Lloyd Blankfein and Government-Sachs are as surprised by these charges as they’re letting on. For if anyone could ever figure out how to make money while they lose money, well, you all get the idea..

  2. mr_bill says:

    This whole thing stinks! Nerobama is capitalizing on the outrage against Wall Street and he’s using these charges against GoldnutSacks to garner support for the financial industry take over bill. Think about it, the feds now own:

    Auto: GM, Chrysler
    Finance: countless banks, student lending industry
    Insurance: AIG
    Healthcare: ALL
    It totals 51% of our domestic economic activity which is now controlled by this regime! 51%

    Name an industry that government hasn’t nationalized yet and thats where the next “crisis” will come from. Finance is taking its turn as the whipping boy, but they won’t be left with any evil, profit-making ability after they get neutered by this regime.

    I expect a major energy sector “crisis” soon so Nerobama can clip their wings and nationalize them, too. Get ready for the onslaught of MSM propaganda about the cost of oil and “obscene profits” of oil and gas companies in the later half of this year. Hillary started to play that hand in ’08 but never followed through and you can rest assured that it will make a re-appearance this year.

    Retail and construction haven’t been explicitly targeted yet but those are the only major economic sectors I can think of at the moment which haven’t been directly assaulted by this regime….yet.

    • proreason says:

      they are controlling the credit card industry as well.

      Fascism is defined as controlling the means of production, but not specifically owning the industries.

      That is EXACTLY what is happening in this country.

      And it’s easy to do and doesn’t require any new laws or regulations at all. They government can easily ruin any industry it wants to, so simply by threatening, the government can control an industry. It doesn’t matter how big a business is…..it can’t stand up to a government that wants to control it.

      That’s why the Moron HAS to be thrown out of office. As I’ve said many times, he doesn’t need Congress to do anything.

  3. misanthropicus says:

    Ugly as this affair is (and I’m sure that it is true, and that it is also only the tip of the iceberg in this 2008 crisis), I still can’t see how the Dems and the liberals can capitalize on it, and also, why Repubs and conservatives should defend Wall Street –
    The Tea Party movement is a Main Street movement – heck, let me quote Bill Ayers’ “Prairie fire” here, and this fire must not spare the Wall Street scum –

    Man spoke –

    • mr_bill says:

      My disagreement is that this is not persecution of bad practices for the sake of doing what is right, it’s persecution of an industry in the interest of nationalizing it.

      In my humble opinion, there are a lot of culpable parties in the whole mortgage meltdown scenario: from Jimmuh Carter and the CRA to the Congressmen who allowed subprime lending to occur (Fwank, Dodd, Schumer), the liars that took out mortgages they knew (or should have known) they couldn’t afford, the Fed who lowered rates when they should have held or increased them, the loan originators who initially made the loans, Fannie and Freddie (who lowered their standards to buy the mortgages), the I-Banks who bundled and sold the mortgages as securities, the people who bought them without trying to understand what they were buying, the companies who issued insurance policies on default risk, the underwriters of those policies who didn’t examine the risk, and the stooges in government who bailed out all of the above with money they didn’t have. It was a conflagration of bad decisions made by lots of people who didn’t consider any consequences or ignored them.

      To single out one group from this whole mess in an effort to demonize them and use that angst as a lever to foist tyrannical government control upon that group is not justice, its not even vengeance or retribution, its exploitation and deception. The journey doesn’t end there, Obama plans to continue this travesty and nationalize everything he can before he loses power, if he hasn’t dissolved Congress, the Supreme Court, free elections, and declared himself supreme ruler before we can vote his statist rear end out of office.

      I don’t think consevatives are defending indefensible actions here, consevatives are trying to stop the tyranny train, because we realize that the financial sector is not the end of the inquisition and the goal is not reform. Obama de Torquemada has an agenda and its not wholesome for anybody, the goal is control. That’s always the goal with statists.

    • tranquil.night says:

      Wise words, Bill. You are correct in asserting the many layers of fault that pertain to the mortgage meltdown and it is also true that we should keep all the focus on how it was government that ultimately enabled, emboldened, and then covered for it until the end.

      My problem with this issue is that Wall Street is Obama Street and has been since TARP, so we’re really stuck defending ourselves from a theoretical near future while the businesses we defend support the man who attacks them and the “reform” which will destroy them. The same twilight-zone phenomenon occurred with a lot of the Big Health Insurance companies during the HealthCare debate. We all knew they were doomed even while some would come out and support the bill because they thought they were having new customers mandated to them. Misdirection by design.

      So we’re really left defending Wall Street because to lose the broader financial (including the big private and regional banks) sector to a string of government seizures and shut-downs is to lose all control of lending and production means. It’s the backdoor to a Chinese command-style economy that Pro correctly asserts is taking the traits of a Fascist regime over all the other synonyms.

    • mr_bill says:

      Thanks, tranquil.night. You’re right about Obama Street as well. The whole fetid thing is reminiscent of the “…when they came for me, there was no one left to speak up” allegory. The fact that this country has come to that is truly sad.

  4. GetBackJack says:


    wanna know why your gasoline went past $4 a gallon summer before last? who taught enron how to corner a market and bleed it dry? who conceived the sub prime mortgage bubble for their client banks?

    but GS can’t be touched because they’re even bigger Democrat donors than Hugo Chavez and his cocaine crops.

    • proreason says:

      The article doesn’t discuss the timing (and it also skips over many other bubbles that GS helped create and exploit in the last 100 years).

      Two monumental bubbles burst in September and October of 2008…….the price of gasoline, and the stock market.

      How could it be that a mere 9 weeks before the election of the first marxist president, that the country experienced 2 of the most significant economic events of the prior 230 years? The price of gasoline had NEVER moved as it did in the spring and summer run-up and 50% drop in prices in September and October. And the stock market had NEVER crashed as it did in Sept-October of an election year. Indeed, the political power in party has powers at its disposal that can impact the stock market. In something like 9 of the prior 11 elections, the stock market went UP in an election year. And there has never been anything even close to the disastrous election-year crash of Sept-October 2008. Moreover, the problems with the free-mortgages-for-deadbeats program had been known for at least a year. Republicans, had sounded alarms as early as 2002. Yet it all came to a head JUST BEFORE one of the most consequential elections in US history.

      Certainly, GS was involved….but heck, they have been at the epicenter of every bubble and crash of the last 100 years. Why would they do it 9 weeks prior to a consequential election? They could have done these things in the summer, the year before, the year after, in 2010…..whenever they and others like George Soros chose to manipulate the market to make their billions.

      Look no further than 2 simple facts.

      1. John McCain took his first (and only) lead in the most respected poll (Gallup), the weeked before the massive attack on Lehman Bros began THE NEXT MONDAY. The weekend after that, the government (i.e., ex-GS executive Henry Paulsen) took over Lehman Bros. The Thursday after that, there was such a massive run on Money Market accounts that ex-GS CEO Paulsen and committed-liberal Bernacke declared (i.e., LIED) that civilization would come to an end without a massive bail-out. And Bush was suckered into the trap. McCain humiliated himself. Meanwhile, the drop in gasoline prices from over $4 to under $2 stole his biggest issue.

      2. Now, take a look how GS (and Soros) have done financially since the election. Set aside the widely accepted myth that Republicans are the tools of Wall Street, and that only Democrats are able to protect Main Street from the predators. Set aside the fact that Obamy gleefully demonizes Wall Street (including GS) every chance he get. Look instead at the profits GS (and Soros) have reaped since Nov 2008. They are massive, unprecedented. They made billions creating the bubbles, and they have made even more billions sucking the country dry after the Moron was elected.

      It was a setup from the word go. Not only didn’t they care that they cratered the world economy, that they ruined the retirements of tens of milliions of people, that they threw tens of millions out of work……it is exactly what they and the marxists intended to do.

      The money criminals and the political criminals acted together to get the marxist con man elected. They both got what they wanted…..money and power.

      Now the greatest country that ever existed is on the brink of collapse, while GS and the Moron live like emperors.

      But the press, of course, has never even asked why two concurrent Krakatoa level fininacial events happened in the two months prior to the election. Even conservatives don’t dare suggest that anything unusual was afoot in the 9 weeks prior to the Moron’s election.

      Sarah Palin’s daughter’s sex life, it seems, is the graver concern.

      You may disagree with my interpretation of the events, but it’s hard to dispute that the events of September and October 2008 had a massive impact on this country. And it is equally hard to dispute the deafening silence from the media about them.

      It’s as if they pretended Pearl Harbor and 9/11 had never occured.

    • tranquil.night says:

      Government-Sachs, guilty yes, is really just a vessel with a bunch of sharks on board. To some this was probably just a savvy game of money. Others saw opportunities for personal wealth, political power or the means to crush a competitor. It’s the ideologues on board that pose the biggest threat to the country now, because they still sit on the throne of power with a clear vision of the bigger picture, and their war chest is fuller than ever.

      Obama is in the hot seat right now. He needed a demon, but it had to be a real enough one this time to fool some Republicans back into a bipartisan atmosphere and sideline some of the Tea Party momentum. There will be a time to know the details of the incestuous and corrupt relationship GS has with members of both parties of the governing elite. However, right now the national focus needs to be on the GOVERNMENT’s side of that relationship when talking about any new Financial Reform Effort. In addition to the need to stop any deceptive Obama shell games, there’s a real opportunity to educate people while they’re listening about how this all really happened.

  5. Liberals Demise says:

    Where are the charges against Congress for screwing the
    pooch on Fannie and Freddie?

    Go after the real criminals first.

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