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Charlie Gasparino Says Goldman Settlement To Be Between $1 and $5 Billion

Tyler Durden's picture




 

From Charlie:

“I’ve been talking to lawyers and rival CEOs just trying to ballpark it at this point…there is no number, but people are ball parking, and these are CEOs and lawyers, between $1 and $5 Billion. And that’s what they are saying. And these aren’t people that are necessarily trying to keep negative stuff on Goldman Sachs. These are both analysts that are positive on the stock, but those are the numbers that they are talking about.”

“And it depends on a lot of things. For all I know, the SEC can come in and say give us $100,000,000 if Lloyd Blankfien gets fired. That’s a possibility.”

 

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Thu, 05/06/2010 - 10:27 | 334378 Benthamite
Benthamite's picture

Surprise, surprise.  So they (SEC) were just blowing smoke after all.  

Fri, 05/07/2010 - 04:15 | 336503 Moonrajah
Moonrajah's picture

No, they were blowing Lloyd and the gang. And now he has to pay for the pleasure, being the honest man that he is.

Thu, 05/06/2010 - 10:30 | 334387 waterdog
waterdog's picture

It has to be that low, Bernanke cannot print the money that would be needed to give to Goldman to pay the SEC if the amount was $ 125 billion; the amount it should have been.

 

Thu, 05/06/2010 - 11:38 | 334550 DaveyJones
DaveyJones's picture

Is this like GM paying off our loan early with other money we loaned them earlier? 

Thu, 05/06/2010 - 11:43 | 334565 Duuude
Duuude's picture

Nah, it's using a small portion of tha profits from the Fed/Treasuries repo scam. Less than 1/4 of a years bonu$ pool. OhhhhhNoooooo.

Thu, 05/06/2010 - 10:31 | 334388 Hephasteus
Hephasteus's picture

So a slightly rougher penalty than downloading an illegal song.

Thu, 05/06/2010 - 10:39 | 334412 derp
derp's picture

Well I'd say our priorities are in order.

Thu, 05/06/2010 - 13:17 | 334862 Captain Obviousness
Captain Obviousness's picture

LOL... that sums it all up doesn't it?

Thu, 05/06/2010 - 10:31 | 334391 Howard_Beale
Howard_Beale's picture

Did he look hungover when he stated this? He loves to go to Elaine's and get schnockered.

Thu, 05/06/2010 - 11:21 | 334498 Ripped Chunk
Ripped Chunk's picture

++  The weak minded should not drink or drug.

Thu, 05/06/2010 - 10:33 | 334396 SWRichmond
SWRichmond's picture

Do we get to choose from whom's pocket it comes?

Thu, 05/06/2010 - 12:25 | 334708 chumbawamba
chumbawamba's picture

Does it matter?  Either way it'll be yours.

BAILOUT BITCHES!!

I am Chumbawamba.

Thu, 05/06/2010 - 10:34 | 334399 Village Idiot
Village Idiot's picture

With no admission of guilt, of course.  Feels very satisfying - not.

Thu, 05/06/2010 - 10:40 | 334414 Cognitive Dissonance
Cognitive Dissonance's picture

Exactly. An admission of guilt would validate all the private lawsuits that have been filed. That's what's really worrying GS. Many of the private suits are counting (or should I say hoping) on first blood being drawn by the SEC. A settlement would embolden GS, not weaken it.

Thu, 05/06/2010 - 10:48 | 334438 SWRichmond
SWRichmond's picture

This is the same reason that central bankers always toe the line and deny that bubbles can be seen forming; if they admitted they could see them they'd be liable.

Thu, 05/06/2010 - 10:54 | 334453 Cognitive Dissonance
Cognitive Dissonance's picture

SWR

You bring up an interesting point. How immune, if they are at all, is the Fed to lawsuits? The Bloomberg suit is an interesting case but it pertains to disclosure of information. What about lawsuits brought because of policy "errors" that caused harm? Isn't one of the legal tenants that one must have been harmed in order to be compensated? And how would the Fed compensate us, by printing money?

Any ideas on this subject?

Thu, 05/06/2010 - 11:18 | 334486 Fraud-Esq
Fraud-Esq's picture

Enormously perfectly timed question!

Thu, 05/06/2010 - 14:12 | 335055 ZerOhead
ZerOhead's picture

Agreed... Good time to check this out.

In the meantime it's once again a bank fine for Mr. Bankfine and 'Being Goldman' means never having to say you're sorry!

Thu, 05/06/2010 - 11:24 | 334509 dstein12
dstein12's picture

The concept of sovereign immunity would likely protect the Fed from any suits by citizen-taxpayers.  Even if the government waived soverign immunity, there would be standing issues that would need to be overcome.  One might question whether any person holding dollars would have such standing...

Thu, 05/06/2010 - 11:37 | 334549 Cognitive Dissonance
Cognitive Dissonance's picture

But the Fed is a private bank that was (allowed to be) created by the Fed Reserve Act. It's not quite a GSE either because GSEs are theoretically open books. It's a strange animal that exists for various reasons.

Can a sovereign itself (the USA) extend its immunity onto the Creature from Jekyll Island? 

Thu, 05/06/2010 - 11:42 | 334560 Fraud-Esq
Fraud-Esq's picture

correct and see below. like the way you think CD

Thu, 05/06/2010 - 10:56 | 334457 Hephasteus
Hephasteus's picture

I think it's much simpler than that.

"As soon as by one's own propaganda even a glimpse of right on the other side is admitted, the cause for doubting one's own right is laid." -Hitler

God, The FED and Adolf Hitler. You can't make them wrong. You can just make them suicidal.

 

Thu, 05/06/2010 - 10:34 | 334401 What_Me_Worry
What_Me_Worry's picture

Doesn't this open Pandora's box, though, if they settle this?

Thu, 05/06/2010 - 10:35 | 334402 economessed
economessed's picture

But how will this impact their ability to make donations to candidates, political parties, and PACs?  If the fine is too high, they may have to cut back for a while.

Isn't anyone thinking of the politicians?  How will they replace their sugar?

Thu, 05/06/2010 - 10:35 | 334403 lsbumblebee
lsbumblebee's picture

That should provide plenty of laughs at their next Christmas soiree.

Thu, 05/06/2010 - 10:37 | 334405 jkruffin
jkruffin's picture

Ok, I assume this is just the civil settlement, and not the DOJ criminal actions.  So, let's say Goldman, who claims they aren't guilty but quickly want to settle, pays the billions and the case is dropped.  Who the freak gets the settlement money??? Where does it go?  Backdoor right back to Goldman while the idiots in America are playing with their Ipad's?  Or does the SEC get more yearly subscriptions to AsianHottie.com?? 

Thu, 05/06/2010 - 10:39 | 334411 Village Idiot
Village Idiot's picture

chickswithdi*ks.com, I think.

Thu, 05/06/2010 - 10:37 | 334406 macfly
macfly's picture

And what was the total of last years bonuses?

Thu, 05/06/2010 - 10:42 | 334423 ABCStore
ABCStore's picture

No, what percentage of last year bonuses this settlement is going to be?

Thu, 05/06/2010 - 10:40 | 334415 Ras Bongo
Ras Bongo's picture

Pocket change for the 8-pussy

Thu, 05/06/2010 - 10:41 | 334417 Mitchman
Mitchman's picture

This feels like a tie for each side.  And a tie is like kissing your sister.

Thu, 05/06/2010 - 12:29 | 334717 chumbawamba
chumbawamba's picture

Unless your sister is a porn star.

I am Chumbawamba.

Thu, 05/06/2010 - 10:42 | 334421 crosey
crosey's picture

$1 - $5 billion....quite a range.  What else will be bartered to decide the final amount?  Let's see:

$1 billion - we were not doing God's work

$5 billion - we were doing God's work

Buying the stairway to heaven?

 

Thu, 05/06/2010 - 10:44 | 334425 fsudirectory
fsudirectory's picture

$5 is a start to getting back the AIG money... or at least help to pay for the ensuing criminal lawsuits that will tie up lawyers for 10+ years.

Thu, 05/06/2010 - 10:46 | 334433 john_connor
john_connor's picture

Make $100 billion off scam, pay $5 billion fine, admit no wrongdoing.  Wash, rinse, repeat.

Thu, 05/06/2010 - 22:21 | 336132 dumpster
dumpster's picture

5 billion fine fiat from government save your ass funds

Thu, 05/06/2010 - 10:46 | 334435 curbyourrisk
curbyourrisk's picture

If they do this without admitting guilt......the fuck everything.  Let the ponzi go on for everyone.  BULLSHIT...I SAY....TOTAL FUCKING BULLSHIT!!!!!

Thu, 05/06/2010 - 12:31 | 334728 chumbawamba
chumbawamba's picture

You were expecting Mother Theresa?

I am Chumbawamba.

Thu, 05/06/2010 - 10:48 | 334436 earnyermoney
earnyermoney's picture

Keep an eye on the cash contributions to the political parties for the 2nd and 3rd quarters. 1st Q had majority of contributions going to the Republican party. With the SEC shakedown and settlement, I expect the 2nd and 3rd Q reports to show a majority of contributions to Democrats, as usual.

Thu, 05/06/2010 - 10:50 | 334443 doggis
doggis's picture

please allow me a moment of silence as i am deeply in denial. although i rationally knew this may be the outcome,  this was supposed to be a moment of clarity - sob..... may the gods be angered by this and strike rath upon GS!

Thu, 05/06/2010 - 11:28 | 334518 earnyermoney
earnyermoney's picture

wrath on GS? The Obama administration is the one settling the lawsuit! LOL

Thu, 05/06/2010 - 10:51 | 334444 williambanzai7
Thu, 05/06/2010 - 10:52 | 334452 Common_Cents22
Common_Cents22's picture

Why would the govt do anything other than the "big tobacco" ploy?  Demonize big tobacco then extract billions but not enough to kill the cow.

Like a vampire sucking out blood, suck too much and you kill your next meal.  Just like the mafia does, take payola money but not too much where you kill the business and lose your future revenue stream.

Thu, 05/06/2010 - 10:57 | 334459 RicktheDick
RicktheDick's picture

That's a hell of a spread Charlie. Let me guess, you used to be a market maker at Goldman... 

Thu, 05/06/2010 - 10:57 | 334462 Joe Davola
Joe Davola's picture

They can make the check out to:

 

Br....

 

or, they can contact me (call BR-549), if they need the details for wiring it directly to my bank.

Thu, 05/06/2010 - 10:58 | 334463 Tesla
Tesla's picture

Looks like they got a reasonably satisfactory response to that after getting Cramer to use those numbers as a trial balloon...

 

 

Thu, 05/06/2010 - 11:03 | 334476 John McCloy
John McCloy's picture

OT:

Im curious. Who does Goldman actually think will pay them off on their CDS bets on sovereign default. Anyone with a brain can put 1 and 1 together and see that GS is trying to use this as a distraction from their own eventual reckoning, financial threats against the government trying to prevent them from pursuing them and real financial reform and to collect profits by using their unmatched leverage. So whos going to pay them? Could be like AIG all over again.

Thu, 05/06/2010 - 22:25 | 336142 dumpster
dumpster's picture

multiply choice who will pay

1) the bosses bonus

2) the hidden stash in a bahamas

3) some sort of profit made in the business

4) the government/fed  tapping the people

Thu, 05/06/2010 - 11:24 | 334493 Fraud-Esq
Fraud-Esq's picture

Gasp is a reaching for news. This is (and better be) about cutting a deal for the commercial bank victims. Obama has a big fish to fry and this case is all about that if my radar is adjusted correctly

Thu, 05/06/2010 - 11:19 | 334494 Ripped Chunk
Ripped Chunk's picture

Not enough to keep the natives in their tents.

Try again at around 10X the higher amount.

Thu, 05/06/2010 - 11:21 | 334500 dstein12
dstein12's picture

The concept of sovereign immunity would likely protect the Fed from any suits by citizen-taxpayers.  Even if the government waived soverign immunity, there would be standing issues that would need to be overcome.  One might question whether any person holding dollars would have such standing...

Thu, 05/06/2010 - 11:23 | 334506 dstein12
dstein12's picture

This was supposed to be in response to Cognitive Dissonance's question to SWRichmond.  Sorry for the mess-up.

Thu, 05/06/2010 - 11:40 | 334557 Fraud-Esq
Fraud-Esq's picture

no sovereign immunity for reserve banks... hell, I'd love to see them make that argument, be kinda like giving the admission they never give. If they're the sovereign, they can't ask the sovereign not to audit..

Thu, 05/06/2010 - 11:22 | 334502 virgilcaine
virgilcaine's picture

GS is housed in a glass building now.  Not the granite that was on Broad st.

Thu, 05/06/2010 - 11:26 | 334512 Fraud-Esq
Fraud-Esq's picture

Does anyone watch this garbage? What a waste of a commission... 

http://www.c-span.org/Watch/Media/2010/05/06/HP/R/32589/Finance+industry...

Thu, 05/06/2010 - 12:05 | 334639 Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

Letting Goldman off with a fine is like a drug dealer paying his fine in coke,long prison terms,a break up of the TBTF,nothing less and a complete reform of the SEC a minimum.

Thu, 05/06/2010 - 12:35 | 334742 Jesse
Jesse's picture

 

Who will they pay it to?  The congressional campaign funds for the fall elections?

Thu, 05/06/2010 - 12:36 | 334743 AnonymousMonetarist
AnonymousMonetarist's picture

**Breaking News**

Gaspy says Venus is between the Earth and the Sun...

 

Thu, 05/06/2010 - 12:38 | 334755 jory
jory's picture

Gas Bag is an Idiot.  Plus his wife is fat and ugly.

Thu, 05/06/2010 - 13:08 | 334837 Fix It Again Timmy
Fix It Again Timmy's picture

1-5 billion? You could get more by overturning and shaking the sofas at their headquarters? 

Thu, 05/06/2010 - 20:25 | 335778 Madhouse
Madhouse's picture

$12 billion

$12 billion

$12 billion

$5 billion is still $7 billion below the parity number of $12 billion that GS should not have recieved in the backdoor bailout of AIG.  So, fellow readers, there are 300 million debtholders in this country. $16 trillion in debt. But really, only about 30 million of us actually pay taxes so thats $533 thousand in debt each.  So, the lost $7 billion is just $233 dollars but if you scream at your Congress rep and tell him you want your $233 then we just might get it back and then we can put it towards the $533k you owe because that is a real number.

Or put it this way, GS rigged a lottery 233 times the size of a regular lottery. You had no chance to win the $12 billion, it was going to them the entire time. Feel good about giving them a check for $233 so they could spit on you ? Want to get it back ? Then scream at your Reps and Senator or, more than likely just baaaaah your way to the next story...

 

Fri, 05/07/2010 - 05:22 | 336540 Grand Supercycle
Grand Supercycle's picture

 

MAY 1st:

"The weekly DOW chart shows an expanding wedge indicating a significant move is probable... this remains an overbought bear market rally and the uptrend could falter at any time.

http://www.zerohedge.com/forum/latest-market-outlook-0#comment-326767

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