Why Goldman Sachs? (Congress, ethical, health care, Levin)
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Why are they being nailed to the cross so vehemently, while JPMorgan Chase gave $9BILLION in bonuses, but has failed to help a substantial number of homeowners? When will the mortgage companies be made to pay the piper??
They are in the spotlight because they managed their risk better than citi and others. Basic Levins point seem to be; why did you not fail to make a profit like the others even if it was only 500 milion. That of course would have meant that taxpayers would have had to bail them out in large amount.Its kind of; if you didn't fail then you shuld be shamed. Its like telling americans that didn't fail the same thing;you should have failed like so mnay of those that took mortgages called lier loans today because income was lied about by buyers. Levin seems to think that failing was the only ethical thing to do and those that failed and needs large amounts in bailouts are the most ethical.Crazy. What i really want to know is why Freddie and fanie setup by governamnt relaxed the documention requirements aloowed these lier loans? But I am afriad that goes back to teh regulator of both which is congress who want those peoepl to get thsoe loans in what they thought was a housing market where the worse that would happen si they refied or the sold at a profit.Let those who couldn't get a loan otherwise in on the hosuing market riches.
Because the current CEO's predecessor became the Secretary of the Treasury! And after the financial collapse there is evidence, all though granted it is not certain, that Goldman had conflicts of interest with its proprietary trading and clients. Not to mention they took some 10 Billion $ in TARP money. Yet they come out on top and are making Billions and have become a monstruous entity that would not exist 15 years ago. It may be unfair that they are singled out, but with great power comes great responsibility.
The real reason they are under so much scrutiny is because no company was as deeply entrenched in the collapse and the recovery as Goldman.
Think about this..what company was the first to take Govt. money to avoid folding? AiG. Who was the company that underwrote the insurance for the Credit Default Swaps that crushed the financial markets? AiG. What company created the instrument? Goldman. Who made Billions of dollars on those paid out insurance policies that damn near brought the largest Insurance Underwriter in the world (AiG) to bankruptcy? Goldman!
So..if you cut through the THOUSANDS of layers of crud and take it to it's core. Goldman's 'Q3 & 'Q4 '08 profits were based on CDS payouts, funded by the AiG bailout..AKA You! It then converted it's charter to a Commercial Bank so it could take another $10 Billion in TARP..again AKA Your Money!
Granted..it payed back TARP. Would you like to know how?
According to their Online Proxy report and quarterly earning statements, 11% of their revenue is generated by their core businesses of Money Management for Municipalities and larger organizations. 74.2% of it's revenue was generated by it's own trading..anyone care for a translation? Goldman Sachs is the worlds largest Hedge Fund, AND they are now taxpayer subsidized.
Someone please explain to me why Glass/Steagel shouldn't be reinstated? These guys played with their own money like they were in Atlantic City..and then decided they were too big to fail when the house called their markers.
It seems like a dog and pony show for the public. Whenever they do these crucifications it doesn't seem anything really changes. They sit them infront of a panel, way their fingers at them and then send them on their way.
The real reason they are under so much scrutiny is because no company was as deeply entrenched in the collapse and the recovery as Goldman.
Think about this..what company was the first to take Govt. money to avoid folding? AiG. Who was the company that underwrote the insurance for the Credit Default Swaps that crushed the financial markets? AiG. What company created the instrument? Goldman. Who made Billions of dollars on those paid out insurance policies that damn near brought the largest Insurance Underwriter in the world (AiG) to bankruptcy? Goldman!
So..if you cut through the THOUSANDS of layers of crud and take it to it's core. Goldman's 'Q3 & 'Q4 '08 profits were based on CDS payouts, funded by the AiG bailout..AKA You! It then converted it's charter to a Commercial Bank so it could take another $10 Billion in TARP..again AKA Your Money!
Granted..it payed back TARP. Would you like to know how?
According to their Online Proxy report and quarterly earning statements, 11% of their revenue is generated by their core businesses of Money Management for Municipalities and larger organizations. 74.2% of it's revenue was generated by it's own trading..anyone care for a translation? Goldman Sachs is the worlds largest Hedge Fund, AND they are now taxpayer subsidized.
Someone please explain to me why Glass/Steagel shouldn't be reinstated? These guys played with their own money like they were in Atlantic City..and then decided they were too big to fail when the house called their markers.
Correction when the government decided they were too big to fail. But they also had already been able to get raise more private capital before the government decided that certain ones had to be bailed out. The case is very weak as seen in the congressional hearings. More than anyhting this was a signal that they plan to meet the SEC in court since they testified . Its like a glove thrown down. Government is often use to using strong arm tactics to get people to cop a plea.You can bet they have alot of backing on wall street to challenge the civil suit. Only one trader has been charged crimionally.
First we're treated to the that great opening act, the national elections, vague promises to get that "change" that the populace wanted after the ass whipping they took at the hands of the other party. Then the next act, "the collapse", then the "health care reform", now the "redemption". How much political theatre will the public stand for before they figure it out? All of the artistic talent in hollywood couldn't have created a more staged production than that charade in DC we call our "government in action".
Our government is deep in the pocket of those fat cats on Wall Street, they own it outright, there are much bigger players than those answering for Goldman, it's all about the money, not the company. Some guys may end up doing time but the real perps are still out of sight, keep looking, there are more powerful folks than those at GS. I'd have to say, it looks like Wall Street has won on every account and the taxpayers conversely have lost their future and present fortunes to a bunch of crooks that don't mind being in the spotlight, after all, no actor has ever gotton so much for a single role...............
The crimes of GS are so egregious that the government has to at least put on a show that they are facing up to them. The truth of course is that it is GS that is in charge, and dictates to the government what will be done. It would be better for both the politicians and GS if the majority of incumbents were to be re elected in the coming election, and so the dog and pony show. Now all the incumbents can do some grand standing and have something to show their constituents that they are fighting for them. Then after they are re elected they will go back to work for their real bosses GS.
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