Goldman Sachs Finally Admits it Defrauded Investors During the Financial Crisis

[think]

You read that right. Goldman Sachs admitted it defrauded it's investors as part of their settlement....

Goldman Sachs Finally Admits it Defrauded Investors During the Financial Crisis

by Lucinda Shen - APRIL 11, 2016, 2:04 PM EDT

Goldman Sachs effectively admitted that it had knowingly misled investors to buy shoddy products.

Investment banking giant Goldman Sachs has agreed to a list of “facts” in addition to paying $5.1 billion to settle a lawsuit related to its handling of mortgage-backed securities leading up to the 2007 financial crisis, the U.S. Department of Justice announced Monday.

It’s a definite improvement on the DoJ settlements of a few years ago when Wall Street firms were able to get away with saying they “neither admit or deny the charges.” But it’s unlikely to quell critics that say the government hasn’t done enough to punish bankers in the wake of the financial crisis. Just like in past settlements, no individual bankers have been charged with wrong doing.

From 2005 to 2007, Goldman issued and underwrote many mortgages and securities that had been backed by residential loans borrowed by consumers with shoddy credit ratings. That helped tip the economy into recession after the housing bubble burst in 2007, leading to a tsunami of foreclosures and delinquencies. That caused billions of dollars in losses for investors. The settlement mentioned mortgage loans that had been originated by Countrywide, Fremont, and others. Countrywide was bought by Bank of America is early 2008. Fremont is no longer in business.

Goldman agreed to pay $2.39 billion in civil penalties, and another $1.8 billion in relief in the form of loan forgiveness and financing for affordable housing. An additional $875 million will be paid in cash to resolve claims from other federal and state entities.

“This resolution holds Goldman Sachs accountable for its serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail,” said Acting Associate Attorney General Stuart F. Delery in a statement....

Read more:
http://fortune.com/2016/04/11/goldman-sachs-doj-settlement/

[Herman4747]

1. This is the company Hillary cheers onward??? n/t

[Rex]

2. No doubt the penalty will be severe.

[think]

4. That fine probably hurt real bad. They might have a bad earnings report or something....

[Rex]

6. Someone will be in trouble for not putting a cover sheet on their TPS report!

Nice timing with the Panama Papers release.

[lonestarnot]

12. Not even a strongly worded letter.

[bkkyosemite]

3. The Bastards need to be in prison.

[Politicalboi]

5. Can Hillary give speeches there?

At least she'd have a captive audience.

[BeanMusical]

15. Lol!

[turbinetree]

7. Just think they can write some of this "fine" off ......................................

I wonder if I can write -off my next speeding ticket, running a red light, or making and illegal turn----------------off my taxes.
I know the fine print does not have it on the tickets-----------------------------but still..........................if you don't pay or you contest the ticket.........................hell you get a bench warrant, and then you have the court costs iff you contest the ticket.....................if you lose..................................but still...........................




Honk-------------------for a political revolution Bernie 2016

[1939]

17. If you are operating a business

If you are a landscaper and you get a ticket going from one job to the next in your work truck, you could write off a fine as a cost of doing business. If you are taking your wife out for dinner in the truck you can't. Corporations can write off fines as a business expense.

[turbinetree]

19. I am not trying to sound crass..............................

and I understand fully what you are saying...............................

But the idea, of using the "corporation has a person" logic is just wrong.

I don't want to get into the weeds on this......................................but they broke the law and they should not be able to write - it off as a business expense-------------------this idea to shield themselves by invoking the company name is just wrong.

And this fine should be separate-------------------------what did the tax payer get out of this, did we get lower credit card rates, did we get homeowners back into there homes, that money (fine) should have been used to some relief to people from the profit that this blood sucking "corporation person hood made", ..................this is, I believe the second time they have been "fined"-------------------amazing



Honk----------------------for a political revolution Bernie 2016

[1939]

21. What is taxed

In a business is "profit" which is "income minus "outgo". Fines are "outgo" and decrease profit.

Now I think we could refine what is "outgo" because it includes things like depreciation and other items which really have no cash outgo. A lot of corporate tax avoidance comes into play with such things as R&D credits and mineral depletion allowances which should also get a closer look..

[FailureToCommunicate]

8. Self delete. (Oops wrong forum. No politics here)

[FairWinds]

9. Goldman "sacks" is also heavily invested in . .

for-profit higher education - a gigantic scam backed by the taxpayers.

And banksters are also securitizing and selling student loans, with
tranches and derivatives soon to follow.

I kid you not, the financial predators refer to the vulnerable among us: the elderly, the young, the naive, the less educated as "low hanging fruit" ripe for the harvest. What scum.

The Prez can stop much of this on his/her own if he/she chooses.

We need Bernie !!

[elljay]

10. Sure hope this is all tax deductible!

I'd hate for the execs to only take home a billion or two this year.

[ViseGrip]

11. So, will charges be brought and jail time served? If not, this is just for optics.

[elmac]

13. Bank robber says he's sorry

and won't do it again, pays a small fine and all is forgiven. Boy, it must be nice living in the rich mans world.

[slipslidingaway]

14. And the people whose lives they help to destroy, well they just need to work harder and not be so ..

stupid.

[BeanMusical]

16. Kick and R

[Katashi_itto]

18. What % did Clinton get?

[Initech]

20. If corporations are people, can we execute Goldman Sachs already?

[cprise]

22. K&R