Goldman Sachs Gets Thrown in the Briar Patch by the DoJ

Friday, April 30, 2010 , , , , 65 Comments



First, before you read the WSJ bit, check out this video. It will put everything into context nicely.


(is that Eddie Murphy as Br'er Fox?!)

Finding out that a lather can easily be worked up in response to a regulatory bitchslap, the Department of Justice will be next to line up against Goldman Sachs, sort of like the couples skate of regulation. Awww!



WSJ:

Federal prosecutors are conducting a criminal investigation into whether Goldman Sachs Group Inc. or its employees committed securities fraud in connection with its mortgage trading, people familiar with the probe say.

The investigation from the Manhattan U.S. Attorney's Office, which is at a preliminary stage, stemmed from a referral from the Securities and Exchange Commission, these people say. The SEC recently filed civil securities-fraud charges against the big Wall Street firm and a trader in its mortgage group. Goldman and the trader say they have done nothing wrong and are fighting the civil charges.

Prosecutors haven't determined whether they will bring charges in the case, say the people familiar with the matter. Many criminal investigations are launched that never result in any charges.

Line up and get a piece while rage against the big bankers has reached its breaking point: the regulators are so desperate to get your respect back, they're trying to take down the largest piece of prey they can find.

Before you let them park a wooden horse in your driveway, make sure you check the trunk for termites.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

65 comments:

Anonymous said...

I can remember watching this and absorbing the message as a child. More Uncle Remus and less Teletubbies is what children need today.

Anonymous said...

"the regulators are so desperate to get your respect back, they're trying to take down the largest piece of prey they can find."

If it restores some law and order and puts the fear of God in a few key people, I say more power to DOJ (and what the fuck took you so long?). RICO

elf2006real said...

@Anon 937,

Perhaps you don't understand the Briar Patch ref? Goldman Sachs was trotted out to justify the new regulations and the financial "reform" Act. Which G/S has publicly endorsed and the rest of the Big Wall Street meanies are also swooning over. It puts them into permanent TBTF status, has the govt picking them as the winners, which will allow them to borrow at lower rates. They also will be money magnets as people will invest in DC's protected crony industries, and drive their competition under. Meanwhile your personal bank and insurance company will be passing on fees to finance their gambling to you.

That's before they crash at the craps table and bill the taxpayers again.

The Briar patch means exactly where you want to be...

RICO? You kidding? DC is controlling the racketeering..this is govt by Control Fraud.

Dodd being the author of the Bill was a clue.

Fear of God? They are God in their minds..

Anonymous said...

Good analogy, and I agree children should be watching this not the usual mindless drivel on TV. Maybe then they'd recognize the concept of the briar patch. Just like the insurance industry that rewrote the health reform bill didn't want to be thrown in the briar patch. If criminal charges are pursued it'll be so hard to prove it Goldman will probably get off. Briar patch. I'm old enough to remember this story, and recognize a briar patch plea when I see it, too.

Anonymous said...

"RICO? You kidding? DC is controlling the racketeering..this is govt by Control Fraud. "


RICO! RICO! RICO!

Anonymous said...

The Senate's reform bill and a DOJ investigation are two separate things.

Just ask Dan Rostenkowski.

Anonymous said...

"It is rare for the government to indict a company, and even the threat of criminal prosecution can doom a business. A criminal investigation destroyed the Wall Street firm Drexel Burnham Lambert in the 1980s even though the firm settled with authorities."

If a parasitic, corrupt and corrosive outfit previously thought to be too big to fail does in fact fail, does it really matter how that occurs? I don't give a shit myself. Lord moves in mysterious ways. I know what briar patch means and while I may be mistaken, I think Eric Holder knows what it means too.

http://www.washingtonpost.com/wp-dyn/content/article/2010/04/30/AR2010043001336.html

Junior:
Your father is rubbing off on you. I am preparing a post on the SEC's case as Brer Rabbit's being thrown in the briar patch!

Pop

Learned from the best, Pop. :)

Chairman said...

Congressional Theater meets Wall Street PR.

Goldman settlement in the works!

elf2006real said...

The "Goldman Settlement" they'll give several times as much to pols this year...

If there's one thing you can say about Eric Holder and his DoJ, it's that they're the best Justice money can buy.

Anonymous said...

GO CUOMO GO CUOMO GO CUOMO GO CUOMO

It ain't over 'till it's over - Yogi Berra (St. Louis native from The Hill)

Anonymous said...

"Goldman shares are down about 22% since the SEC filed fraud charges against it last month."

Take that, you fucking Squid.

Anonymous said...

B.T.W. Claire McCaskill's staff probably has me pegged as certified lunatic by now - I love the internet; who knew it was for something more than just hot girl on girl porn?

Anonymous said...

damned if those pesky investigations and probes don't smart a bit, huh

In February 2007, New York Attorney General Andrew Cuomo launched an investigation into alleged deceptive lending practices by student loan providers, including The College Board, EduCap, Nelnet, Citibank, and Sallie Mae.[6] On April 11, 2007, Cuomo ended his investigation of Sallie Mae and announced that Sallie Mae had voluntarily agreed to change its lending standards to satisfy a new code of conduct for student loan practices established by Cuomo, and to donate $2 million (USD) to a fund devoted to educating college-bound students about their loan options.[19]

On October 10, 2007, documents surfaced showing that Sallie Mae was attempting to use the Freedom of Information Act to force colleges to turn over students' personal information.[20] The university involved, the State University of New York system, is expected to decline the request and be forced to defend its position in court.

In December 2007, a class action lawsuit was brought against Sallie Mae, alleging that the company discriminates against African American and Hispanic private student loan applicants by charging them high interest rates and fees. The lawsuit also alleges that Sallie Mae fails to properly disclose private student loan terms to unsuspecting students. The lawsuit is pending in a Connecticut Federal Court.[21] New York Attorney General, Andrew Cuomo, raised similar concerns about possible student loan redlining in June 2007.[22]

Anonymous said...

be sure to check out the five year performance of SLM - down about 76%and wouldn't you know it that the damned decline began around 2007.

Ain't that just one big fucking co-inky dink?

Anonymous said...

http://online.wsj.com/article/SB20001424052748703876404575200451031701386.html

All of our not-insignificant-losses this past year came as a result of the performance (or lack thereof) of investments purchased via the MO CU System – more or less a pass through to the larger corporate credit unions such as Wescorp and U.S. Central. As I understand it, most of the smaller corporate credit unions pretty much function this way – feeder business for the very large corporate credit unions. I could be wrong because it isn’t really my true bailiwick here. Those large corporate credit unions purchase investments that by their own policy and regulation must be rated a particular grade or higher. Not much different than a pension fund would state within their investment policy. From what I understand, they were doing the “no brainer” strategy of investment and had what I believe is a blind faith in the rating system but then again, I guess most people did the same. Most of the people doing that function act like lemmings. They ALWAYS look to see what the other guy is doing before making a move. I’ve always been in awe of the lack of independent thought shown by so many people who are in authority positions. What’s worse is that they reinforce one another. Douchebag Central. I believe that the creators of these investments (like G.S.) know how that game is played and that’s why they leaned so hard on the ratings agencies. The ratings were the key. Without favorable ratings, they never would have had access to the large pools of money and they knew that – had to have known it. Individual small fry within the ratings agency probably smelled a rat but were not in a position of power to change anything. The higher ups were most likely making some very good money by “going along to get along” and just said wtf? ‘cause IBG – YBG by the time the wheels come off. Between the money, the influence, the greed and the disregard for what was ahead, they said wtf? (my opinion – that and 50 cents will get you a cup of coffee) I’ve always thought that money (or the thought of guaranteed money coming) doesn’t really change a person but it allows a person to show their true colors.

Anonymous said...

"The [Fed] has acquired more than $1 trillion of mortgage-backed securities in the past 15 months. At their policy meeting next week, Fed officials will decide how and when to get rid of them without jarring financial markets and the nascent economic recovery"

That's a Skeptical CPA post to start. My question is (and maybe it is a dumb question - I don't even 'get' Pedobear unless it is explained to me like I'm three years old - "What were the ratings on that 1 trillion in securities? How were the ratings arrived at? Please tell me it wasn't a S&P job... Please tell me that someone within the Fed that has his head screwed on right actually spread the paper before making the bid"

Anonymous said...

More from the It's the Ratings, Stupid articles floating around. I'm waiting for the insider to come forward if he or she hasn't already.

Anonymous said...

Bill Gross is quoted as mocking the ratings being handed out for the bonds of PIIGS - a WTF do you mean by this rating? - in articles today. Waiting for a bunch of them to join together and suit these fuckers into infinity and beyond (to use a Buzz Lightyear phrase)

Anonymous said...

So, now I'm wondering this... what if as the Fed was stepping up to the plate in the past couple of years and doing their civic duty to support the housing market, they used the same ratings agencies to get a handle on the credit worthiness of the securities they were buying. I'm pretty ignorant of how that works but if they were in fact the replacement for the normal market's participants and in good faith accepted the ratings given by the "usual suspects" but later found out they had been duped - wouldn't that mean that the fraudsters have more or less picked the wrong guy to play chump? I mean, it would be like your run of the mill mugger deciding it would be a great idea to shake down Dirty Harry is my impression. Does that make any sense?

Anonymous said...
Anonymous said...

the slow motion train wreck also known as Goldman Sachs common shares

The Squid tasks me; he heaps me. Yet he is but a mask. 'Tis the thing behind the mask I chiefly hate; the malignant thing that has plagued mankind since time began; the thing that maws and mutilates our race, not killing us outright but letting us live on, with half a heart and half a lung.

Die Squid, Die!

Anonymous said...

From hell's heart I stab at thee; for hate's sake I spit my last breath at thee. Ye damned Squid.

I like this one too... Melville knew people.

Who came up with the Vampire Squid name for G.S. anyway? - I really like that. If the shoe fits?, right?

Anonymous said...

boo-yah! Again, want to hurt a rich pompous ass? Don't fuck his wife, don't burn down his house, don't kick his dog - just take his money and wealth. I hope every little squid out there is shorting them. Like a little swarm of humboldts

Anonymous said...

voters demanding Squid blood My old history teacher in high school who hailed from Philadelphia, Mississippi had us consider the theory that the War of Northern Aggression was caused as much by devisive tax policy as it was about the issue of slavery. Damned Yankee bankers.

Anonymous said...

and it ain't just Goldman Sachs they don't need more "reform smoke and mirrors legislation". They need some common sense enforcement and courts to get involved with telling the investment banks that their bloated and ill gotten contracts are either worthless (or worth less than full face value). That's what seems to be taking place (finally).

Anonymous said...

DOJ ain't done with them. More high drama political theatre yet to come. Plenty of popcorn and Jelly Bellys on hand. This is intermission, so I'm gonna hit the head and get another diet Dr. Pepper.

Anonymous said...
Anonymous said...

"Thomas said Goldman sent the FCIC the equivalent of 2.5 billion pages of information without providing indexes to assist the commission in combing through the documents."

They are going with the old "If you can't dazzle them with brilliance, then you should baffle them with bullshit" strategy.

If you can't dazzle them with brilliance, baffle them with bull.
W. C. Fields

I like it better with bullshit instead of "bull".

Anonymous said...

"The FCIC has interviewed more than 800 people as part of its probe. The vast majority of the individuals and firms contacted have provided information without being compelled by subpoena."

just a matter of time

Anonymous said...

it will take just one lucky shot

Anonymous said...
Anonymous said...

only good if you like drum solo's

3 month share price history - down 17.87% ouch.... that's *too* bad (chuckle, chuckle)

I need to figure out how to get that wonderful SarcMark installed here.

Anonymous said...

Ford (F) up

Harley (HOG) up

Southern Companies (SO) up

Polaris Industries (PII) up

American Railcar Industries (ARII) up

U.S. Steel (X) up

Goldman Sucks, ahem Sachs (GS) down


awwww, thats a shame Die Squid, die

Anonymous said...

But investors aren't forgetting that the SEC has filed those pesky civil charges against the Wall Street titan. Shares of Goldman Sachs (GS, Fortune 500) have plummeted 25% since the allegations of fraud tied to a complex mortgage security came to light on April 16. The stock is now trading just 2% above its 52-week low.

some folks are getting antsy I'm breaking out the world's tiniest violin right now so I can play "My Heart Bleeds for You". hahahahaha!

Anonymous said...

It might be premature to say this but as for all the folks who think Goldman is some kind of unsinkable ship I would remind people that Lehman Brothers managed to survive through the Civil War (sorry, I meant to say The War of Northern Aggression :>) and managed to go tits up during this past decade. If Lehman could manage to put its tittie in a wringer, so can G.S.

Anonymous said...

The U.S. Attorney’s offices received $2.4 million through the fiscal year 2009 omnibus budget to fight economic crimes, according to a DOJ spokesperson. Congress allocated an additional $10 million to the U.S. Attorney’s offices in the fiscal year 2009 supplemental budget to fight financial fraud, the spokesperson said. The supplemental funding does not expire until fiscal year 2011. DOJ was able to hire 76 new Assistant U.S. Attorneys to handle financial fraud cases with the fiscal year 2009 funds, according to the spokesperson.

Notice how quiet it has been over at DOJ? I wonder why...

Anonymous said...

“This budget represents the largest-ever, single-year enhancement to support and expand the Justice Department’s financial fraud programs,” Holder said. “This will allow for additional FBI agents, prosecutors and support staff to aggressively pursue mortgage fraud, corporate fraud and other economic crimes.”

Anonymous said...
Anonymous said...

"...Also, if such charges are affirmed, the company needs to initiate damage control and incur huge charges. Therefore, such issues are not only a blow to the company’s reputation, but also a dent in its financials. "

And if that happens I promise that the Inglorious Bastard and I will weep real tears for the poor little darlings....


die you fucking squid, die already.

Anonymous said...

oooohhh,,, Goldman Sachs is down over 20% in the past three months and the USA Today printed an article saying what I've suspected would be the case - Goldman is very likely to go up on a cross for crucifixion this political season. Too easy a target, I'd suppose. If that becomes the case, unlike Christ, they're going to be getting what the so richly deserve. Popcorn, popcorn, popcorn. Die Squid, die.

Anonymous said...

do not claim to be doing God's work, Llyod God don't tolerate being mocked you uppity prick.

Anonymous said...

I'm not alone in my hatred for the Squid, it would appear. Never underestimate the power of the group think or mob. Once public opinion starts rolling in a given direction, it gets momentum and then sometimes takes on a life of its own. The more I read about them, the more I'm inclined to think they deserve everything they may have coming to them.

Anonymous said...

Don't you find the silence to be quite deafening?

Anyone want to make a dollars to do-nuts wager that there will be news to come from DOJ around mid-September to mid-October? I wouldn't be at all surprised.

Anonymous said...

It ain't over.

Goldman’s shares are maintaining a Zacks #5 Rank, which translates into a short-term Strong Sell recommendation. Considering the company’s business model and fundamentals, we have a long-term Underperform recommendation on the stock as well.

Don't get too comfy, Squid.

Anonymous said...

Many have argued that the TLGP will ultimately make banks more reliant on government funding, not less, and that the bigger problem is that a viable exit plan has yet to be mapped out. Perhaps the bleakest viewpoint comes from the pundit who compared America’s banks to heroin addicts, saying, “…like every addiction, the longer it continues the higher the likelihood we will all end up with just one more dead, zombied junkie.”

“At any time, the banks could go out into the public markets and raise debt to replace the taxpayer-subsidized borrowings. But they haven't. The reason: It would make them less profitable.” Under TLGP, the banks are saving a bundle on interest rates.

It could just be me but it seems that Goldman likes to portray itself as a John Wayne / Rooster Cogburn type duking it out for fun and profits in the wild, wild west. Strong, independent, answers to no one but himself... you get my drift. To me, this article just says the opposite - it is in fact a five year old with a cowboy hat and a cap pistol riding a mechanical pony in front of the Wall Drugs.

Anonymous said...
Anonymous said...

It's quiet out there..... too quiet.

Anonymous said...
Anonymous said...
Anonymous said...

Wow, Bob "romance clouded my judgement a.k.a. thinking with my dick" Moffatt of former IBM fame is going to the clink

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/09/14/BU641FD4KE.DTL&type=business

'cause he's hooked up with Danielle Chiesi

http://www.google.com/imgres?imgurl=http://www.exposay.com/celebrity-photos/brigitte-nielsen-4th-los-angeles-italia-film-1plT8j.jpg&imgrefurl=http://www.freerepublic.com/focus/f-news/2419866/posts&h=620&w=400&sz=56&tbnid=I9_lKjU-fpmMUM:&tbnh=280&tbnw=180&prev=/images%3Fq%3Ddanielle%2Bchiesi&zoom=1&q=danielle+chiesi&hl=en&usg=__Deiw-iDpko20FTEEslSuZualIzk=&sa=X&ei=8-SPTI2EBYOisAOc4rmxDg&ved=0CB0Q9QEwAw

You have to admit - that is one nice looking set of ta ta's even for a middle age chick with maybe she does and maybe she doesn't bleach her hair blonde

...who in turn is hooked up with Raj of Galleon Group with his own set of troubles (his buddies like to call him Kumar) Who's up for White Castle, Bitches!?!

btw - you're a Wisconsin girl - don't you miss White Castle?

http://www.benzinga.com/life/hedge-funds/242458/buffet%E2%80%99s-goldman-gs-deal-being-probed-galleon-group-insider-trading-case

which in turn puts some heat on the Oracle of Omaha which of course comes back to your old pals at Goldman Sachs. This is becoming like the game of seeing how many levels of separation Kevin Bacon is from any movie ever made.

Anonymous said...

Well color me disappointed. The blonde chick was Bridgette Nielsen (spelling) from one of the old Rocky movies (Yo! Adrian!).

http://www.cbsnews.com/8301-504083_162-20009905-504083.html

Found the real picture. Not really so hot. maybe she gives mind blowing head.

Anonymous said...

"A blond, blue-eyed former teenage beauty queen, Chiesi used her sexuality to build sources at male-dominated tech "

Beauty Queen - yeah, former as in really, really former.... today, I wouldn't fuck her with TLP's dick.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=apTuckYhnYYU

God, these assholes are hard up... I wouldn't throw away even the loser job I have for this broad and these chuckleheads throw away a job paying more in a year than I'll make in two decades... for that.... shit. Pass, I'd go with pornos and baby oil (and sani-wipes afterward - cleanliness is next to Godliness) before I threw away my job for that.


http://www.reuters.com/article/idUSTRE63E36G20100415

Hey dickhead watch what you volunteer TLP's dick for!

And I must be a bad Midwesterner, I've never been to a White Castle.

Anonymous said...

OK, I've had a chance to think about this and maybe, MAYBE with some good night vision beer goggles and closing time coming in 20 minutes or with said goggles and a "go ugly and go early mindset" - but pitch my job over it AND go to jail...no, I don't think so.

Anonymous said...

Hey dickhead watch what you volunteer TLP's dick for!

hahahahahaha - boy, that sure got a rise out of you quick. ha!

Jesus H. Christ - no White Castle? Next thing you'll say is you don't like the Packers. WTF is wrong with you!

W.C. Varones said...

Anon, while you've got the baby oil out, spank one out for Christine today.

Anonymous said...

I'm only good for one a day and I'm doing it right now!

I'll get to her on Wednesday!

has nothing to add, but if he did, it would not be in the "one a day" column.

and appreciates being un-volunteered ;)

Hey Anon if you need an extra for, you know, a Tuesday night or something TLP and I have plenty, we can loan you one.

Just please wash your hands before you make any comments, that's all we ask.

JDA -

Wash his "hands"? I think you mean "hand" ... unless Anon is adding rightie to the repertoire these days.

You're right, I'm sorry. I was projecting my own situation on Anon's.

Don't forget the Sani-wipes!

Anonymous said...

I've detected a trend on this blog. The topics that get the most commentary are (in no set order)

sex
masturbation
pot (or other drugs)
tattoos

But, back to the matter at hand (pun intended)... It is very quiet where the DOJ probe of your old pals at GS is headed. Anyone else see that as odd?

p.s. one a day - I go for quality and not quantity. ok, ok, it's really aging.... there I 'fessed up, happy?

Anonymous said...