U.S. starts criminal probe into Goldman trading

[kpete]

Source: Reuters


U.S. starts criminal probe into Goldman trading: report
Reuters


NEW YORK (Reuters) – U.S. federal prosecutors are conducting a criminal probe into whether Goldman Sachs Group Inc (GS.N) or its employees committed securities fraud in connection with its mortgage trading, the Wall Street Journal reported on its website on Thursday.

The investigation from the Manhattan U.S. Attorney's Office, which is at a preliminary stage, stemmed from a referral from the U.S. Securities and Exchange Commission, the WSJ said, citing people familiar with the probe.

The SEC already has filed a civil fraud lawsuit against Goldman, charging that it hid vital information from investors about a mortgage-related security.

A spokeswoman for the office of the Manhattan U.S. Attorney said she could "neither confirm nor deny" any Goldman investigation. Goldman was not available to comment.

Read more: http://news.yahoo.com/s/nm/20100430/bs_nm/us_goldman_probe

---

[The Hope Mobile]

1. I so want to see those cocky a$$holes go down! nt

[RC]

2. I want to see some 20+ year prison sentences and confiscations of some wealth.

Pay back the victims for a change.

[MannyGoldstein]

3. Kabuki Theater

It'll never go anywhere.

They'll continue to be guaranteed astonishing bonuses by using $12 trillion+ in taxpayer money to prop up their junk.

(We have become a nation of chumps.)

[AllyCat]

18. Unfortunately Manny, I agree with you. I'm so beyond thinking anything

will ever happen to these crooks. Some "investigation" and "hand slapping" might make the teevee, but that will be about it. Maybe some mid-level fall guy/gal will do a little time. Then they'll come up with the next scam to bilk us out of our futures, our health, and our lives.

[Beetwasher]

4. Who's Your Daddy?

Beet's your daddy. Ok, a bit premature since there's no indictments, but c'mon folks! WHO'S YOUR DADDY! :evilgrin:

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=4357475#4357484

" I Have A Feeling That DOJ Has Also Been Quietly Looking Into This

Just a feeling that we may see some criminal indictments."

[UpInArms]

5. SEC sends Goldman case to prosecutors

Source: Washington Post

The Securities and Exchange Commission has referred its investigation of Goldman Sachs to the Justice Department for possible criminal prosecution, less than two weeks after filing a civil securities fraud case against the firm, according to a source familiar with the matter.

Any probe by the Justice Department would be in a preliminary stage. No Goldman Sachs employees involved in the mortgage-related transactions that are the focus of the SEC case have been interviewed by Justice Department prosecutors or the FBI agents who often conduct probes on behalf of prosecutors, according to a source familiar with the matter. The sources spoke on condition of anonymity because they were not authorized to discuss the matter publicly.

The Justice Department usually investigates high-profile cases of securities fraud, but the threshold from criminal prosecution is significantly higher than that of civil cases. The SEC only files civil cases.

The Wall Street Journal and Bloomberg News reported Thursday night that the U.S. Attorney's Office in Manhattan had followed up on the request and opened a criminal probe. The office declined to comment.

<snip>

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

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2010/04/29/AR2010042904458.html?hpid=topnews

[Warpy]

6. So when are they going to go after Moody's?

Golden Sacks couldn't have scammed their investors without all those AAA ratings on their absolute shit from Moody's.

They also couldn't have gotten that absolute shit insured against loss by AIG.

They've just scratched the surface here.

[UpInArms]

7. that "scratch" will make GS bleed money at an alarming rate

and maybe, just maybe, it will be an artery and this corporate person will die an ignoble death.

[proudohioan]

10. You are right!

I remember watching those hearings back in 2009 on C-SPAN, and those ratings were given AAA ratings when in fact, they KNEW they were junk.

[chill_wind]

15. Berating The Raters

What Baker and Krugman said.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x532066

You are right.

[abelenkpe]

37. They will go after the ratings agencies too

It will take time, but it will happen.

You are right tho, it's just the beginning.

[BootinUp]

8. Of course, its not the 80's and GS isn't really the same as a Drexel Burnham.

GS is far from destroyed. Will have to see where this goes.

[provis99]

9. nice that the SEC took a break from watching porn on their computers.

See how motivated they get when they have an assignment to do?

[Grassy Knoll]

11. So Dubya's jack offs, have to cover their asses.......

This is bullshit, Dubya's jack offs should have stopped this long ago.

[Jefferson23]

12. We'll see. Sic William Black on them, he'll eat them for lunch. n/t

[QUALAR]

13. Derivative This

The rating firms should be indicted for issuing a triple A rating to derivatives that were described as pure crap by the firms that put them together. The rating was critical because it permitted large retirement and public funds to be invested. This amounted to billions of dollars lost through a criminal conspiracy. Dust off the RICO statutes. If no criminal charges result from this investigation, Obama is indeed a corporate whore disguised as a populist.

[chill_wind]

14. And Barofsky is zeroing in on Geithner. Oh yes.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x532657

[whereaminow]

20. Where's the delete button?

n/t

[chill_wind]

22. There isn't.

You just kinda have to do what you did-- edit or type "self-delete" or something like that.

Anyway, welcome aboard DU.

[whereaminow]

24. Thanks

I plan on having some fun :evilgrin:

[chill_wind]

25. Uh-oh!

wherewereyoubefore, whereaminow, or don't we want to know?

:scared:

[scentopine]

16. Let's hope we do better than Scooter Libby, we need real justice -nt

[whereaminow]

26. Real justice?

That would depopulate probably half of Manhattan. DC would be a ghost town. Might just be easier to build a fence around them and move the capital. How 'bout Tucson? Nice weather there.

[whereaminow]

17. So who's the poor schlub

that they're going to throw under the bus to make this all go away?

[chill_wind]

19. A whiz kid (in his 20's at the time) called Fab?

http://abcnews.go.com/Business/goldman-sachs-fabrice-fabulous-fab-tourre-wall-streets/story?id=10429139&page=1

[whereaminow]

21. SNAFU

Not much else to say... just another day in paradise

[chill_wind]

23. And in a different probe - GS/Buffett deal/Galleon- maybe

this guy? Or maybe he'll survive the storm..

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x531826

[Heywood J]

27. Yes, I totally trust that GS will be indicted...

[sabrina 1]

28. Goldman may face Justice Department review

Source: Washington Post

The Securities and Exchange Commission has referred its investigation of Goldman Sachs to the Justice Department for possible criminal prosecution, less than two weeks after filing a civil securities fraud case against the firm, according to a source familiar with the matter.

Any probe by the Justice Department, if underway, would be in a preliminary stage. No Goldman Sachs employees involved in the mortgage-related transactions that are the focus of the SEC case have been interviewed by Justice Department prosecutors or the FBI agents who often conduct probes on behalf of prosecutors, according to a source familiar with the matter. The sources spoke on the condition of anonymity because they were not authorized to discuss the matter publicly.

The Justice Department usually investigates high-profile cases of securities fraud, but the threshold for criminal prosecution is significantly higher than that of civil cases. The SEC files only civil cases.

The Wall Street Journal and Bloomberg News reported Thursday night that the U.S. attorney's office in Manhattan had followed up on the request and opened a criminal probe. The office declined to comment.

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2010/04/29/AR2010042904458.html?hpid=topnews

[dipsydoodle]

29. BBC link to subject

Goldman Sachs is under criminal investigation for the way in which it sold complex mortgage-backed products to clients, reports suggest.

Earlier this month, the US financial regulator brought civil charges against the bank for defrauding investors.

It alleged that Goldman failed to disclose a conflict of interest, in that a firm advising it on a product was betting it would decline in value.

>

To file charges, prosecutors would have to gather evidence that company employees knowingly broke the law.

http://news.bbc.co.uk/1/hi/business/10092972.stm

The last sentence surprises me given that in the UK , for comparison , ignorance of the law cannot be used as defence under any circumstances whatsoever.

[sabrina 1]

30. Thanks for the BBC link.

Regarding the UK not accepting ignorance of the law as an excuse, it is generally the same in the U.S. WE hear it all the time.

I think the problem here may be that it's difficult to prove that someone INTENDED to break the law, not so much that they are not aware of it. And Goldman has already defended the charge that they did not inform their clients of what they were doing. The claim they are not required to as they are in the business of speculating.

Also, the U.S Dept of Justice just lost a case against two Bear Stearns employees recently who were accused of the same thing. So, I think it will be a tough case for the DOJ especially since Goldman can afford the best lawyers in the country.

[salguine]

31. I'll bet Goldman are reeeeally worried (laff, laff, snort).

[Democat]

32. Hope they send Meg Whitman to prison!

That would be a better place for her than political office.

[SoulSearcher]

33. Justice vs Power

The problem here is these people have access to power. They may make you mad as hell, but behind the scenes
they can legally make some powerful economic (bad OR good) things happen. The financial system has very old
and very long "roots"- and that is no joke. You cannot remove Ivy by plucking off the leaves, but you gotta start
somewhere... How about 40years of daily soup-kitchen detail? After cleaning the toilets, that is..

[librechik]

34. kick!

:kick:

[valerief]

35. The hearings are a dog and pony show. The real culprits will go to prison when pigs fly.

They own the govt. They always do in 'democracy-in-name-only' nations.

[flyarm]

36. Have they put Geithner on that list? If not..it is nothing but a dog and pony show! eom

[defendandprotect]

38. That would be novel . . . holding corporations responsible for anything -- ???!!!

Would love to see it!!