http://news.bbc.co.uk/2/hi/business/8645945.stm
Mr Levin, chairman of the Senate Permanent Subcommittee on Investigations, said that Goldman had proclaimed a responsibility to its clients, "yet the evidence shows that Goldman repeatedly put its own interests and profits ahead of the interests of its clients and our communities".
"Its misuse of exotic and complex financial structures helped spread toxic mortgages throughout the financial system.
"And when the system finally collapsed under the weight of those toxic mortgages, Goldman profited from the collapse," Senator Levin said.
Question: Is this the beginning of the end of the "Masters of the Universe" culture popularized by writers like Tom Wolfe and Michael Lewis and movies like Wall Street?
Is the age of the super powerful, super rich and highly pressurized investment banker coming to an end?
If so, what will be the effects on the larger economy?
Originally posted by sh76They are obviously guilty. Of course, how such a powerful and influential corporation is finally being held accountable for sins that led to the credit crisis?
http://news.bbc.co.uk/2/hi/business/8645945.stm
[i]Mr Levin, chairman of the Senate Permanent Subcommittee on Investigations, said that Goldman had proclaimed a responsibility to its clients, "yet the evidence shows that Goldman repeatedly put its own interests and profits ahead of the interests of its clients and our communities".
"Its misuse of exotic a ...[text shortened]... stment banker coming to an end?
If so, what will be the effects on the larger economy?
What I find hilarious is the likes of Chris Dodd questioning these goons by saying something to the effect that the locks on the doors need to be changed so that future problems will not occur. You know, this is the same Senator who is involved with the Countrywide scandel that afforded him special rates on his mortgages as well as handsome political contributions that may have caused him to turn a blind eye to the storm brewing.
Now getting back to my original question of why this is happening, here is Glenn Becks view of the situation etitled, "Why Godmann...er..um...Goldman is Willing to take the heat?"
http://www.foxnews.com/printer_friendly_story/0,3566,591542,00.html
Faith, hope, and charity. We used to seek God's blessings on the country, we used to pursue maximum freedom to solve problems and we would rely on one another in times of need.
Now we are being pushed towards what progressives have always found hope in: Dependency on regulations and administrations. Avereage Americans find that approach to be red tape. Our Founding Fathers found it to be slavery.
So it kinda shocks me when there is no outcry to news stories like this one reported in the Financial Times over the weekend: The US is preparing to pivot from domestic reglatory reform to push for a tough new international capital regime."
Exuse me?
We are talking about the foundation of international financial regulations and global governing. It is a trial balloon being floated out there and I guess it was a success because the reponse was complete and total silence.
Is it just me who thinks this is a bad idea? Am I alone? I guess so, because even Republicans are OK with this one. HOw could that happen? Easy: It's those evil, greedy Sith lord Wall Street executives!! Like the ones at Goldman Sachs, who are appearing before the almighty Senate Tuesday to get grilled by the Senate Permanent Subcommittee on investigations about their so-called attempts at manipulating and profit off the crash of the housing market.
They will get chewed out and made an example of by the people like Chris Dodd, who joined in the chorus of Goldman haters on "Meet the Press" on Sunday.
Senator Dodd: "Here we are, 17 months after someone broke into our house in effect and robbed us...and we still have not changed the locks on the doors."
Larry Summers, White House economic advisor: "These off balance sheets, nontransparent vehicles with what people call implicit guarantees, invite these kinds of problems"
Senator Richard Shelby: "We have to end once and for all the casino atmoshere on Wall Street, where they are gambling, basically, on synthetic ideas and so forth - with somebody else's money."
You are right, Chris. You have to change those locks. But the other thing to make sure of is that the people you are calling to change those locks are not the same as the ones who were involved with the robbery in the first place.
Yes, Dodd and his buddies will chew out Goldman, but if they are the root of all evil, why do these people all still work in the administration?
-William Duddley, president of the Federal Reserve Bank of New York; was a partner and managing director at Goldman
-Gary Gensler, chairman of the Commodity Futures Trading Commission; spent 18 years at Goldman.
-Mark Patterson, chief of staff to Tim Geithner, former Goldman Lobbyist
-Philip Murphey, nominated for ambassador to Germany; former Goldman executive
-Diana Farrel; deputy director of the National Economic Council; formerly with Goldman
-Emil Michael; White House fellow, former investment banker with Goldman.
There is just a few. And if Goldman really are the bad guys, we have bigger problems than just regulation, because we have to talk about global warming as well.
(cont)
This is just another example of why Congress has like a 30% popularity rating. Did the government regulators do anything BEFORE? Do rating agencies do anything of use? Were people who did business with GS willing participants who wanted GS's services?
It is simply very popular to blame the wealthy for all of Americas problems -- perhaps problems are caused by Main Street's insufficient contributions to American society (high drop out rate, high rates of children being born out of wedlock, low over all test scores, 47% not paying any income ytax)
Originally posted by whodeyso is Glenn Beck saying here that Goldman Sachs is an innocent company being harassed by evil socialist regulators?
They are obviously guilty. Of course, how such a powerful and influential corporation is finally being held accountable for sins that led to the credit crisis?
What I find hilarious is the likes of Chris Dodd questioning these goons by saying something to the effect that the locks on the doors need to be changed so that future problems will not occur. n just regulation, because we have to talk about global warming as well.
(cont)
or does Beck believe that since Goldman Sachs controls all those regulators, there's no hope of controlling it and companies like it?
or maybe we need to call on the militias to rise up against Goldman Sachs and destroy it by force.
or maybe Beck's parents were named Goldman and Sachs.
I'm not really sure - maybe Mr. Beck believes all of these things.
(cont)
I got a tip from a watchdog -- and by the way, if you are new to the program and do not know what a watchdog is, that is you. We have got millions of watchdogs e-mailing us in tips and stories big and small and we welcome every single one of them. We get to as many as we can and even report on some of them, like this one about the Chicago Climate Exchange.
In case you did not know the Chicago Climate Exchange existed -- it does and it started trading in 2003. It's billed as "North America's only cap-and-trade system for all six greenhouse gases, with global affiliates and projects worldwide." Members agree to a voluntary but legally binding agreement to "meet annual Green House Gas emission reduction targets"
What is cap-and-trade? A scheme designed to transfer wealth from the companies that have to the companies that have not through the regulation of invisible gases. Remember, it was ENRON who lobbied heavily for this type of system, because they knew how to swindle a profit out of it.
Environmentalists like Obama want this system because it will make prices skyrocket and people will be forced to use less energy. But I don't want to put words in his mouth. I will let him say it.
(Video of Obama talking) "Under my plan of cap-and-trade system, electricity rates would necessarity skyrocket"
Got it? So the main beneficiaries will be big corporations and proponents of the redistribution of wealth. You are the loser here becaues you pay more for energy. But you can feel good because you are saving the planet.
Uh-huh.
Not to mention, other places -- like Europe -- whe have tried to implement green initiatives (like Spain) and then base markets on it are suffering consequences. Because, as Time unwittingly described the creation of Chicago Climate Exchange, it "creates something out of nothing". There is no value behind the market, its like Pets.com except now its solar planets.
So who would want to create something like this?
In 2000 and 2001, Chicago Climate Exchange received start-up grants from the Joyce Foundation. The Joyce Foundation is like the George Soros' TIDES Foundation. In fact, it is actually bigger than TIDES and even funds TIDES. Think of it as a place where uber-rich and powerful liberals like to dump their money into, so the cash can be spread around to their pet projects without a direct link.
The Joyce Foundation supports such luminaries as John Ayers (Willian Ayers brother)
There was one influential member on the board of the Joyce Foundation at the time the Chicago Climate Exchange. They were on the board from 1994-2002. The founder of the Chicago Climate Exchange, Richard Sandor, said that he "knew (this person) well," which is perhaps how the money was awarded to the Kellog Graduate School of Management, where Sandor was a research professor. I'll get back to that person in a minute.
Sandor was big things in a climate exchange market.
(Sandor on video) "I think it is a $10 trillion a year market."
A $10 trillion a year market? That is a lot to go around. In comparison, the value of US company shares on major US and foreign stock exchanges equities markets was $15 trillion in 2009. There is a lot of money riding on this climate legislation. But remeber: Its all about saving the Earth.
London based Generation Investment Management sees the earning potential as well. That is why they purchased a stake in Chicago Climate Exchange and are the 5th largest shareholder. The cofounder of the London based firm? Former Vice president Al Gore. I say cofounder bacause some of the other founders include David Blood (former Goldman executive), Mark Ferguson (Goldman) and Peter Harris (Goldman)
In 2006, the Chicago Climate Exchange got a nice boost of confidence when an investor stepped to the plate and ponied up to purchase 10% of the combined compnay. Cofounder of the Chicago Exchange said the investement was a big and welcome news. The investor? Goldman Sachs.
Oh and I almost forgot; The person at the beginning of it all? The one on the board of the Joyce Foundation that secured the initial funding for this project? Barak Obama.
This is so weird. It is almost like those our government says are responsible for the financial collapse are the ones directly involved in the "solutions". So much for "changing the locks", Chris.
OK, now let's look at this. What you have is a structure. This is the building: the Exchange. You have got the structure, all the players.
So waht are we missing? Well, we are missing the bill and the technology to make it happen; the machinery to make it happen.
You are trading air; its hard to keep track of air. The good news is, the bill is being worked on by Republicans and Democrats. That is cap-and-trade.
The machinery, the device? A patient for such a device was worked on by CO2e.com CEO Carlton Bartels. Shortly after he filed for the planet on his system to trade residential carbon credits, he was killed in the 9/11 attacks. Bartels wife then shopped the idea around and was able to find a buyer. The buyer ended up being a guy who was not really a good guy, he committed massive accounting fraud and manipulated earnings in his company in order to make huge bonuses.
That person was Franklin Raines, who just happened to be the CEO of Fannie Mae at the time. The patenet was eventually approved by the US Patent and Trade Office on Nov 7, 2006 -- coincidentally the day after the Democrats took control of Congress. Thanks to Barbara Hollingeworth of the Washington Examiner for pointing this out to us.
So now, Fannie Mae, who is congressionally mandated to "make housing affordable," is poised to reap billions on a system that has nothing to do with housing except for that it would make housing costs go up.
That's great.
Remember when Fannie purchased risky mortgages from banks, bundled them together andsold to investors as mortgaged backed securities? And then the housing market was absolutely destroyed? Well, former Fannie VP Scott Lesmes was responsible for that bundling.
Well, here is the good news; Not only will this new carbon trading system try to extract same bundling method (except with air); they are using the exact same guy; Scott Lesmes.
But please, don't worry. The only ones involved in this are the corrupt Franklin Raines, Mr redistribution of weaith Barak Obama, and all the people who the House and Senate are currently saying are the bad guys. Other than that, this should work out great.
Its almost like Goldman is willing to take a little heat now. In order to get a little piece of the $10 trillion green pie later. I challenge the media; Will anyone pick this story up? Will anyone question this and the timing of it all?
All of a sudden illegal immigration has leap-frogged global warming? Is this because Goldman has to take hits to get the global government structure done? And then they get the payoff? Or will you continue to say oh, he's crazy and not to talk about the fact.
so if Goldman Sachs and the other big Wall Street Banks are basically the ones controlling everything, why does Beck spend so much time railing against the government - if government itself are just Goldman Sach's pawns?
Why bother with the pawns when you should be trying to checkmate the king? - Shouldn't Beck and the Tea Party Movement be holding a huge non-stop rally on Wall Street until Goldman Sachs and companies like it are destroyed?
Originally posted by MelanerpesIts not just "Wall Street" and "government", rather, it is certain players within Wall Street and government that he it targeting.
so if Goldman Sachs and the other big Wall Street Banks are basically the ones controlling everything, why does Beck spend so much time railing against the government - if government itself are just Goldman Sach's pawns?
Why bother with the pawns when you should be trying to checkmate the king? - Shouldn't Beck and the Tea Party Movement be holding a huge non-stop rally on Wall Street until Goldman Sachs and companies like it are destroyed?
Originally posted by quackquackCongress wishes it had a 30% approval rating. It's been a long time since it was that high.
This is just another example of why Congress has like a 30% popularity rating. Did the government regulators do anything BEFORE? Do rating agencies do anything of use? Were people who did business with GS willing participants who wanted GS's services?
Originally posted by sh76I overestimated Congress' popularity.
Congress wishes it had a 30% approval rating. It's been a long time since it was that high.
I have no problem with them charging Goldman with any violation they may have comitted. I do object to them (1) just grandstanding (2) using this as justification to regulating others.
Originally posted by whodeyWell he's clearly targeting Goldman Sachs. If he has any other specific firms in mind, he can add them to his hit list.
Its not just "Wall Street" and "government", rather, it is certain players within Wall Street and government that he it targeting.
Then he can call for a huge Tea Party rally targeting Goldman Sachs and the others on his list. It seems that Beck is claiming that Goldman Sachs pretty much controls everything - so why not focus all the energy on them. Why bother targeting the government if no matter who gets elected, Goldman Sachs is still going to be in control?
Unless Goldman Sachs is also actually in control of Beck himself??
*suddenly Jon Corzine can be heard laughing fiendishly in the background*
Originally posted by zeeblebotPeople tend to think their OWN representatives are wonderful - its the other 532 that are causing all the problems.
why should they care WHAT their approval rating is? the only thing that matters is that the stupid electorate keeps reelecting them.
Originally posted by MelanerpesYou fail to see the timing of this. Obama is attempting to pass the finance reform bill that will empower government further over the private sector. Goldman is simply playing along. No doubt, once the finance reform bill is passed, Goldman will get a slap on the wrist and sit back and wait for cap-and-trade to pass so they can rack in even more money from further misfortunes of the average Joe.
Well he's clearly targeting Goldman Sachs. If he has any other specific firms in mind, he can add them to his hit list.
Then he can call for a huge Tea Party rally targeting Goldman Sachs and the others on his list. It seems that Beck is claiming that Goldman Sachs pretty much controls everything - so why not focus all the energy on them. Why bother ta ...[text shortened]... of Beck himself??
*suddenly Jon Corzine can be heard laughing fiendishly in the background*
Edit: So where is Fannie and Freddie mentioned in the finance reform legislation? That's right, they are not even mentioned. You know, the firms that actually have NOT and NEVER will pay back any of the TARP. In addition, the government is still on the hook for trillions more dollars to clean up their mess.
Brilliant!!