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NYT: Goldman Had Other Mortgage Deals!

From an apoplectic New York Times:

Goldman Said to Have Been in Other Mortgage Deals

By LOUISE STORY

April 26, 2010

WASHINGTON — The legal storm buffeting Goldman Sachs continued to rage Tuesday just ahead of what is expected to be a contentious Senate hearing at which bank executives plan to defend their actions during the housing crisis.

It was a dark and stormy night…

But really, do the fairly flimsy charges in the SEC’s lawsuit warrant such purple prose from the grey lady? Or is the New York Times trying to whip up hatred and division with their dangerous rhetoric?

It’s almost as if The Times has instituted a daily program of ‘two minutes of hate.’ And they have merely replaced ‘Goldstein’ with ‘Goldman.’

Senate investigators on Monday claimed that Goldman Sachs had devised not one but a series of complex deals to profit from the collapse of the home mortgage market.

The claims suggested for the first time that the inquiries into Goldman were stretching beyond the sole mortgage deal singled out by the Securities and Exchange Commission. The S.E.C. has accused Goldman of defrauding investors in that single transaction, Abacus 2007-AC1, have thrust the bank into a legal whirlwind.

The stage for Tuesday’s hearing was set with a flurry of new documents from the panel, the Permanent Senate Subcommittee on Investigations. That was preceded by a press briefing in Washington, where the accusations against Goldman have transformed the politics of financial reform.

But this is not a ‘show trial.’ All investigations proceed with previews and press briefings.

And of course, “the accusations against Goldman have transformed the politics of financial reform.” That was precisely the purpose. 

[A]t the press briefing in Washington, Carl Levin, the Democrat of Michigan who heads the Senate committee, insisted that Goldman had bet against its clients repeatedly.

Which the clients were perfectly aware of. Or should have been. That is often the nature of these kind of transactions.

He held up a binder the size of two breadboxes that he said contained copies of e-mail messages and other documents that showed Goldman had put its own interests first.

“The evidence shows that Goldman repeatedly put its own interests and profits ahead of the interests of its clients,” Mr. Levin said.

If that is true, Goldman did not do a very good job of it. Since they reportedly lost $90 million on the transaction.

Mr. Levin’s investigative staff released a summary of those documents, which are to be released in full on Tuesday. The summary included information on Abacus as well as new details about other complex mortgage deals.

Notice how the Democrats and The Times are trying to demonize “complex mortgage deals.”

On a page titled “The Goldman Sachs Conveyor Belt,” the subcommittee described five other transactions beyond the Abacus investment…

Like other banks, Goldman turned to synthetic C.D.O.’s to allow it to complete deals faster than the sort of mortgage securities that required actual mortgage bonds. These deals also created a new avenue for Goldman and some of its hedge fund clients to make negative bets on housing

Isn’t that a good thing? Shouldn’t Goldman Sachs have been making negative bets on housing at this time?

The subcommittee pointed to these deals as examples of how Goldman put its own interests ahead of clients

The article goes on to discuss these CDOs (collateralized debt obligations), which are also known as ‘derivatives,’ in nearly opaque language — as if the use of derivatives were highly nefarious.

Of course derivatives weren’t and still aren’t unusual. And, as the article grudgingly admits, they weren’t unique to Goldman Sachs.

Derivatives are intended to help the investment firms hedge their bets. Which is always a good thing. But the blame for the recent financial meltdown must be placed somewhere. And those dirty international Jewish bankers Wall Street is an easy target.

God knows it can’t be put where it belongs: in the lap of the Democrat Party and its push to make banks gives mortgages to everyone, no matter how irresponsible they were.

In other reports, Mr. Levin is claiming that “Goldman Sachs built the toxic mortgages that got funneled into the financial market.” But, in truth, it was Mr. Levin and the rest of the Democrats in Congress who “built” those toxic mortgages and put them on the “conveyor belt.”

And they know it. Which is why they feel the need for show trials.

This article was posted by Steve on Tuesday, April 27th, 2010. Comments are currently closed.

12 Responses to “NYT: Goldman Had Other Mortgage Deals!”

  1. proreason says:

    Personally, I won’t be satisfied until Drooling Barney Franks and his co-conspirators Chris Dudd and Franklin Raines are in leg-chains in a dungeon for the rest of their lives.

  2. Rusty Shackleford says:

    He held up a binder the size of two breadboxes that he said contained copies of e-mail messages and other documents that showed Goldman had put its own interests first.

    Heh, when the republicans do that, they are accused of using props and “showboating”.

    Odd how it’s a dicey additive for this story.

    And, who the hell knows what a breadbox is anymore?

    Demonize the bankers. However, it’s all “pot/kettle” to me. Pressure from DC led to bad loans, GS tried to figure out how to make money in spite of it and are being raked over the coals for it.

    We need the documents that say, “Under direct pressure from Barney Franks, I hesitantly released the funds to authorize bad loans”.

    However, it would appear that GS is taking this public shellacking knowing that behind closed doors they are still protected by the obamanation machine. A means to an end. But what they DON’T realize is that they will get thrown under the bus to meet the socialist agenda.

    Wouldn’t be the first time. Again, nobody’s checking the history books.

    • proreason says:

      Obama and Goldman Sachs are allies.

      GS is happy to be the fascist’s whipping boy as they continue to make billions. It’s working just like it did in Nazi Germany. Big Business funds the dictators and in turn are allowed to destroy small businesses and take their profits.

    • TwilightZoned says:

      “GS is happy to be the fascist’s whipping boy as they continue to make billions.”

      You got that right, Pro! GS will undoubtedly make beaucoup bucks from crap ‘n tax. (AKA cap and trade)
      Also, GS destroyed their main competitor AIG.

  3. wterrier says:

    Steve you nailed it.
    Don’t forget that if you were a Bank and had no choice but to make no income mortgages or else get hauled into Court for discrimination by Community Organizers (as BAC was)…well what are you going to do next with this toxic mortgage that you just know will go bust? Like any asset at risk you go buy insurance for it. That’s what RMBS and CDO’s are, insurance.

  4. AcornsRNutz says:

    I like the mention of hte two minutes of hate thing. The metaphor of 1984 falls off in modern times (and let sthe libs borrow it) because the whipping post in the story was a foreign tratior, and the war which kept everyone “doing the right thing” wsa with other countries (perhaps imaginary ones, it is difficult to tell). Like the metaphor of Snowball in Animal Farm, the libs who like to site Orwell miss the point. In our country, Eurasia and Eastasia have been replaced by wall street and corporations. The war is with “poverty” ,”social injustice” and environmental destruction. But the tactics and the purpose of them are the same. Instead of movies showing the war hero killing eurasian soldiers, we have “Avatar” “Frost/Nixon” “Charlie Wilson’s War” “Milk” etc; But it whips up the proles into hating the nationally approved enemies.

    More topically, this whole thing is an obvious sham. NEvermind all the legalese and economic fancy talk. No one forced anyone to buy anything from GS. The only forcing was by the Federal government in forcing the crap loans in the first place.

  5. canary says:

    Pro, Obama & Sachs are allies. I’ll say. Obama’s phone call to Blago, overheard by his chief of Staff, suggesting Afro-American CEO President over Urban League, Cheryle Jackson helped found Clear Radio, a multi-billion profit global radio channel working with the NAACP and “Goldman Sachs” has a hand in it too. Goldman Sachs trying to run global radio too?

    The little scandle with Blago didn’t hurt Obama. And running for Senate Cheryle Jackson lost, and right as the scandlel is breaking, resigned as President and CEO of Urban Leagues.

    But, Cheryle Jackson still manages to get a government job!!! in aviation?
    according to…..
    Chicago Public Radio: Chicago Urban League’s Cheryle Jackson Moves to Private Sector
    Produced by Natalie Moore on Tuesday, March 16, 2010

    Former U.S. Senate candidate Cheryle Jackson is not returning to the Chicago Urban League.

    Jackson will join AAR Corporation later this month. The Wood Dale, Illinois-based company provides aviation products and services. Jackson will be vice president of government affairs and corporate development.

    Jackson previously worked for former Gov. Rod Blagojevich, Amtrak and National Public Radio. .

    http://www.chicagopublicradio.org/Content.aspx?audioID=40706

    Cheryle Jackson busy suing for blacks and latinos schools too, with lots of Obama’s friends & orgs.

    http://www.thechicagourbanleague.org/723210820132032340/site/default.asp

    Goldman Sachs in clear radio
    http://www.clearchannel.com/Corporate/PressRelease.aspx?PressReleaseID=1166&p=hidden

    guess Glenn Beck was mistakenly suggested for the global mulit-billionaire Clear Radio that Cheryle Jackson helped create..
    http://www.brewcityradio.com/wwwboard/messages12/5676.html

    Also, Obama’s clan wants global anti-gun ban.

    Chicago Public Radio: Chicago Mayor Richard Daley is taking his anti-gun campaign worldwide.

    DALEY: Because they don’t want our guns. They don’t want these weapons of destruction, and not mass destruction, just destruction of human beings. They don’t want these anymore. They call upon the United States government to take a leadership role addressing the issue of global gun violence by imposing greater oversight and accountability of the gun industry.

    The mayors are calling on international courts to hold gun manufacturers responsible for damages. When asked if world courts have that power, Daley said, “That’s why we have about 12 million lawyers.”
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~

    And if your looking for more global Obamamania check out Berkley Univesity the 28th of April at 2:00 pm. It’s free.

    Barack Obama and the African Diaspora: Blackness, Globalization, and Obamamania: The World Looks at the latest US President

    does anyone know what does African Disaspora mean?
    Do I have it? I am feeling a bit nauseated. Sorry, I’m confused too.

    • proreason says:

      “Barack Obama and the African Diaspora”: It means the dispersion of African culture, via it’s agent, Barry Obama.

      The bone-deep corrupted criminal politicians who crave even more power view the destruction of the US and Western Civilization as a great thing. The West is only 1/6 of the population of the world, and it is the most difficult population to control

      Muslims, Africa, China, Russians…..all are thoroughly indoctrinated to tyranny. They know nothing else.

      Only the US and the West stands between the wannabe global tyrants and their wet dream of absolute power over the entire planet.

      This explains Obamy’s foreign policy, by the way, to the last detail.

  6. Reality Bytes says:

    No better place than the inspector’s outrage from Casablanca. This one’s for you Pro!

    http://www.youtube.com/watch?v=-Gf8NK1WAOc

  7. proreason says:

    Sorry RB, I usually look at your stuff first.

    Obamy must be affecting by ability to process data.

    Casablanca is the best movie of all time. It symbolizes the apex of the US in world history. It might be a bit simplistic, but it was made before the rats began to undermine everything that has made our country so great. I find something new in it every time I watch it.

    Your classic scene fits Levin perfectly. But he isn’t 1 / 1000th the man that Louie is. Underneath it all, Louie was always rooting for the good guys.

    Leven is such a cynical pervert that he can’t even conceive of a good guy.

    • Reality Bytes says:

      You just described the senator’s qualifications for today’s congress. Go figure.


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