Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20
U.S. Long Bond: Let's Review the "Upward Point of Exhaustion" - 27th Jun 20
Gold, Copper and Silver are Must-own Metals - 27th Jun 20
Why People Have Always Held Gold - 27th Jun 20
Crude Oil Price Meets Key Resistance - 27th Jun 20
INTEL x86 Chip Giant Stock Targets Artificial Intelligence and Quantum Computing for 2020's Growth - 25th Jun 20
Gold’s Long-term Turning Point is Here - 25th Jun 20
Hainan’s ASEAN Future and Dark Clouds Over Hong Kong - 25th Jun 20
Silver Price Trend Analysis - 24th Jun 20
A Stealth Stocks Double Dip or Bear Market Has Started - 24th Jun 20
Trillion-dollar US infrastructure plan will draw in plenty of metal - 24th Jun 20
WARNING: The U.S. Banking System ISN’T as Strong as Advertised - 24th Jun 20
All That Glitters When the World Jitters is Probably Gold - 24th Jun 20
Making Sense of Crude Oil Price Narrow Trading Range - 23rd Jun 20
Elon Musk Mocks Nikola Motors as “Dumb.” Is He Right? - 23rd Jun 20
MICROSOFT Transforming from PC Software to Cloud Services AI, Deep Learning Giant - 23rd Jun 20
Stock Market Decline Resumes - 22nd Jun 20
Excellent Silver Seasonal Buying Opportunity Lies Directly Ahead - 22nd Jun 20
Where is the US Dollar trend headed ? - 22nd Jun 20
Most Shoppers have Stopped Following Supermarket Arrows, is Coughing the New Racism? - 22nd Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

Will Anyone At Goldman Sachs Go To Jail?

Politics / Credit Crisis 2010 May 03, 2010 - 04:51 PM GMT

By: Danny_Schechter

Politics

Best Financial Markets Analysis ArticleWill Goldman survive the assault? Will the threat of criminal charges being pursued against the world's leading investment bank spill over onto others on Wall Street? Is the criminalization of the crisis underway, or is all this just a maneuver?


For the last two years, I have felt lonely and isolated with my calls for a jail-out, and insistence that theft, fraud and crime are at the heart of the economic disaster that has befallen us. I have written two books documenting my contention and just released the film Plunder The Crime of Our Time treating the economy as crime scene.

There are a few other voices out there making a similar claim---Bill Black, the former Bank regulator, US Senator Ted Kauffman, and even billionaire investor Jim Chanos, among them. Most politicians of both parties and media pundits have dismissed the suggestion, preferring to believe that virtually everyone was to blame and, hence, noone was to blame

Most say finance professionals considered the "smartest men in the room" only made "mistakes" because of economic trends no one could have anticipated.

Never mind the 1000 plus bankers who went to prison after the S&L crisis. That was then, and this is now, nearly ten years after the financial services industry pulled off a costly legislative coup through lobbying and campaign contributions to erode regulations and decriminalize the playing field. With a major PR campaign in a complicit media, they packaged their agendas in the language of modernization and innovation.

As their profits rose and the bubble boomed, the seemed to do no wrong until small blemishes like the Enron and Worldcom scandals tarnished their image.

Goldman was still riding high, raking in major profits and paying themselves obscenely well. CEO. That is until the SEC filed a civil complaint alleging a fraudulent transaction that deceived investors. That was followed by turbulent hearings on the Hill where Senator Levin kept repeating an internal reference to "Shitty"deals the firm is said to have pedaled and then bet against.

Goldman looked bad, especially when protesters in the back of the room dressed in old fashioned black and white prison garb protested. Part of the company's defense was that "everyone" on the Street was doing what they were doing. Hmmmm.

Even after all of the drama, Goldman was still one of the biggest earners in town.

Goldman then quickly went from being Wall Street's hero to a zero, writes Larry Doyle on a financial blog, noting "Goldman's close, if not incestuous, relationships with Washington, many hedge funds, and major clients has positioned the firm as the centerpiece of America's outrage toward Wall Street."

The giant firm was now also being ridiculed, even though no charges were proven. Leslie Griffith called the confrontation on the Hill a Marie Antoinette moment on Reader Supported News because of all the onlookers who wanted to cut off their heads.
There was more as she wrote:

"A modern day financial monarchy, Goldman acts with the impunity once reserved for kings. Controlling legislators. Electing Presidents. Filling the Executive Branch with well-heeled lackeys, manipulating world markets and betting against the welfare of its own clients ... the American people. When their equivalent of "tax time" came, they squeezed the peasants for billions of bail-out bucks.

Marie would be proud."

When Mike Taibbi compared Goldman to a "vampire squid" many rushed to their defense. But that was not happening this time. Instead the Justice Department one-upped the SEC by asking for a criminal investigation.

Just the idea of it led to a $21 billion dollar loss in the value of Goldman's shares. Some analysts downgraded the firm they way they downgraded Greece earlier in the week. CEO Chief Exec Lloyd C.Blamkfeinwho said he had been "humbled" by the hearings must be pissed in just afew days, he lost $81 million dollars on 2,023, 364 shares which were worth about $373 million. There was little public sympathy for his fall from grace.

So what now? Will there really be a criminal prosecution or all this just smoke to create a sense of urgency for an already heavily compromised financial reform package? Will anyone go to jail? Unless there are more smoking guns and shocking revelations, some settlement of the civil charges is more likely as The Atlantic explained:

"..., the standard for a criminal case is much higher. The DOJ must present very compelling evidence that a jury would be able to understand well enough to find that, beyond doubt, Goldman and/or some of its bankers are guilty of fraud. Given that there are many people questioning whether even the civil case can succeed under a weaker standard of guilt, it's relatively doubtful that the criminal charges would stick. Yet, the public doesn't have all of the information, so it's too soon to know the fate of a criminal case for sure."

Also, it seems as if only one lower level banker, Fabrice Tourre. aka "Fab,"His defense has already been layed out in his congressional testimony. As NPR's Planet Money noted, "Tourre's public statements make it less likely that he could change his story later and negotiate a lesser penalty with the SEC in return for information that could be damaging to the firm or other executives, the person said."

Now, says Doyle, there is "little doubt as to why the Goldman Sachs execs were reticent in their answering questions this past Tuesday knowing full well that a criminal investigation was potentially close to being launched."

The criminal issue is hardly definite. As one lawyer said to Bloomberg News, "In order to proceed criminally in a case, you need to have very clear evidence of lying, cheating and stealing." Robert Hockett, a law professor at Cornell University, downplayed the crime angle. "It's really not a big deal,'' says Hockett, "It isn't uncommon for the SEC to refer a case to the U.S Attorney. It doesn't present a new legal development. It's a procedural development."

The bottom line: don't get your hopes up. The government has not declared war on Wall Street even after Wall Street declared war on Main Street. And the media is complicit, even blacking out a march of 15,000 workers on Wall Street.

Wall Street is hardly humble. Its arrogance was evident in an email the Financial Times says is "pinging around trading desks. It reads in part:

"We are Wall Street. It's our job to make money. Whether it's a commodity, stock, bond, or some hypothetical piece of fake paper, it doesn't matter. We would trade baseball cards if it were profitable... Go ahead and continue to take us down, but you're only going to hurt yourselves. What's going to happen when we can't find jobs on the Street anymore? Guess what: We're going to take yours.

... We aren't dinosaurs. We are smarter and more vicious than that, and we are going to survive."

The gauntlet has been thrown down.

News Dissector Danny Schechters film and book will be released in April by Disinformation. For more information, Http://www.plunderhecrimeofourtime.com.

    News Dissector Danny Schechter has made a film and written a book on the “Crime Of Our Time.” (News Dissector.com/plunder.) Comments to dissector@mediachannel.org

    © 2010 Copyright Danny Schechter - All Rights Reserved
    Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Glenn
04 May 10, 15:06
Goldman and Jail?

NOT a chance. No one from Goldman will go to jail. It is all a scam and fixed game. Based upon the simple golden rule; he who has the gold makes the rules. If anyone was going to jail we would have heard it from the master change master President Obama when he was first elected.

However, his HIGHNESS knows how the game is won and lost and he wants to make sure he keeps the power brokers and banksters in his back pocket. For someone who swears to uphold the Constitution and the LAWS of our country we should start with impeachment first.

But then again that presupposes CONGRESS is not sucking from the same money teet.

DEMOCRACY no longer works.

Let's try MERITOCRACY.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules