Monday, November 02, 2009
Did Goldman Sachs peddle $40 billion in securities in violation of SEC regs?
by Larry Geller
We (taxpayers), lead by ex-Goldman Sachs executives now working for Obama, may have put the company back in business to do again what brought disaster to the country.
A McClatchy Newspaper investigation posted yesterday suggests that Goldman Sachs may have violated securities laws. Snippet:
In 2006 and 2007, Goldman Sachs Group peddled more than $40 billion in securities backed by at least 200,000 risky home mortgages, but never told the buyers it was secretly betting that a sharp drop in U.S. housing prices would send the value of those securities plummeting.
Now, pension funds, insurance companies, labor unions and foreign financial institutions that bought those dicey mortgage securities are facing large losses, and a five-month McClatchy investigation has found that Goldman's failure to disclose that it made secret, exotic bets on an imminent housing crash may have violated securities laws. [McClatchy Newspapers, How Goldman secretly bet on the U.S. housing crash, 11/1/2009]
The article is long but very worth reading. And there’s more:
Since the economic collapse that swept millions of Americans out of their jobs and homes, Goldman Sachs has moved aggressively to recover its losses. The firm is pursuing marginally qualified borrowers into state courts federal and bankruptcy across the country and seeking to seize their homes. McClatchy examines one couple's multi-year attempt to get Goldman to admit that it had purchased their mortgage.
That article is already posted: Goldman takes on new role: taking away people's homes (11/2/2009)
Folks, this is our government at work. Should the banks have been bailed out while ordinary workers and homeowners are left to swing in the wind? Washington put the big banks back into position to screw us once again. With their power to control politicians through massive contributions, how likely is it that any meaningful regulation will protect the economy against another crash?
Where is the outrage?