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Darrell Issa Demands SEC Inspector General Kotz Investigate Timing Of Goldman Suit

Tyler Durden's picture




 

The Republican escalation into the SEC's Goldman investigation is hitting new highs: late today, Darrell Issa sent a letter (see below) to the SEC Inspector General, David Kotz, demanding an investigation into the timing of the Goldman lawsuit. "The circumstances of the filing and subsequent events fueled suspicion that the Commission, or one or more of its officials or employees, may have engaged in unauthorized disclosure or discussion of Commission proceedings in order to affect the debate over financial regulatory legislation currently pending before the United States Senate." He concludes" Disclosure rules and procedures at the SEC are importnat to efforts to prevent insider trading and any violation would be deeply troubling." An interesting tidbit from the letter: "the online publication by the New York Times of an article describing the Goldman suit prior to the release of the Commission's official announcement is evidence that news of the suit leaked form the Commission via unofficial channels." The last thing the porn lovers at the SEC need is for the IG to find both Mary Schapiro, and the President of the United States, guilty of lying on air seeing how they both denied Issa's allegation. In retrospect, that finding by Kotz alone would be worth the price of admission that Goldman is perfectly innocent of disclosure fraud (we'll leave that one to the jury, what Goldman is much more guilty of is being a market monopolist and there is little disputing that particular fact, which is why we believe Kaufman's noble campaign to cap bank size is very much doomed).

Full letter by Darrell Issa:

 

 

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Fri, 04/23/2010 - 18:56 | 315557 chet
chet's picture

Shut up, Issa.  Why not go after the SEC for all the things they've failed to do over the last two years, not the one proactive thing they're actually doing.

Sat, 04/24/2010 - 13:04 | 316208 aint no fortuna...
aint no fortunate son's picture

+1

 

Fri, 04/23/2010 - 18:57 | 315558 QuantTrader
QuantTrader's picture

About time!  This is an outrage.  Darrell Issa ftw!

Catching Obama in a lie, although will never happen since if anyone at 1400 Pennsylvania Ave new it was that f'ing slimy piece of shit Rahm Emanuel.  Would love for that guy to go down.

Sat, 04/24/2010 - 03:18 | 315957 VegasBD
VegasBD's picture

I think its 1600? And anyone at that address is allowed to lie. Do you really think anything would happen if he WAS caught in a lie, no matter how much evidence there was? Shit Billy money-shotted on an intern and nothin happened, cmon.

Sat, 04/24/2010 - 10:42 | 316110 fsudirectory
fsudirectory's picture

I believe the more appropriate reference would be, Bush and Cheney led us into a $T bottomless pit of a war over a guy Bush's dad hated which they could have just as easily bombed his palace.

Sat, 04/24/2010 - 12:32 | 316182 Cheeky Bastard
Cheeky Bastard's picture

Obviously you are new here so i suppose i should tell you how we run things here

first; you need to shut the fuck up about the positive sides of any of the two political parties. there aren't any. got that. good.

second thing. obama=bush=cheney=pelosi=biden...=every goddamn politician

third thing: when OT write OT and try typing something even mildly constructive

forth: if you want to behave like the brainded HuffPost fucking yuppies you can shove that shit down your troat and choke on it. denoting everything to "Bush did it" or something similar is an instant indicator that your mom should have had an abortion.

fith: fuck you and your party (whichever that might be)

sixth: the causes of the current shitstorm pre-date Iraq II. got that. ok. now we can move on.

seventh: if you think six is wrong go read ZH archives and then get back

eight: i hope you got all that. if not. well. tough shit on you buddy. marginalized you shall be. 

Sat, 04/24/2010 - 18:21 | 316478 velobabe
velobabe's picture

damn cheeky, wouldn't want to get on your bad side. i will keep it sexual, than.

Sat, 04/24/2010 - 08:47 | 316053 Zippyin Annapolis
Zippyin Annapolis's picture

Ok If the WH told the Treasury to tell the SEC to pull the trigger is that "not talking to the SEC" per Mouthpiece Gibbs? There is a big whopper in there somewhere as big as the definition of "is".

Fri, 04/23/2010 - 19:01 | 315566 alien-IQ
alien-IQ's picture

The only thing questionable and worthy of investigation regarding the SEC fraud charges against Goldman is WHAT THE FUCK TOOK THEM SO LONG!

Fri, 04/23/2010 - 19:44 | 315638 The Patagonian
The Patagonian's picture

This is why I will always be a rube

I never liked Issa, but I thought he was trying to unravel this for the last couple of weeks.  I was routing him on.

Now we have to investigate the timing of fraud cases rather than fraud itself and that just doesn't sit right.

That's why I am destined to be a rube: I was brought up to believe in a honest day's work equals an honest day's pay...

And then PT Barnum came along and said there was a sucker born every minute

""The government said today Somali pirates being held in U.S. custody will be brought to the United States for prosecution, and they will be tried by a jury of their peers. So I'm guessing that's, what, Goldman Sachs?" 

---Jay Leno 

Fri, 04/23/2010 - 19:06 | 315572 QuantTrader
QuantTrader's picture

Why so much anti-Goldman sentiment?  This site skews way too young / naive.

Fri, 04/23/2010 - 19:12 | 315584 Gold...Bitches
Gold...Bitches's picture

Why so much anti-Goldman sentiment?

Because they are fucking thieves.

Fri, 04/23/2010 - 19:14 | 315587 Gold...Bitches
Gold...Bitches's picture

and the same thing should be done to them as individuals that break into your house and steal from you - put the shotgun about three feet in front and pull the trigger as many times as you can before you run out of ammo or you develop a really bad cramp in your trigger finger.

Fri, 04/23/2010 - 19:16 | 315590 Gold...Bitches
Gold...Bitches's picture

I am not young, and while I am extremely cynical, one thing I am not is naive.

Fri, 04/23/2010 - 20:22 | 315690 alien-IQ
alien-IQ's picture

You seem to be of the ilk that deems crime acceptable if the perpetrator wears a suit and robs you from a distance. Some of us differ with you, if that makes us young and naive, does that by proxy make you old and corrupt?

Fri, 04/23/2010 - 20:37 | 315717 cougar_w
cougar_w's picture

It's not anti-Goldman.

Most of us just want GoldmanSacks to be the first of many to go up against the wall at dawn.

That's all.

Sat, 04/24/2010 - 03:10 | 315955 Bananamerican
Bananamerican's picture

"Why so much anti-Goldman sentiment?  This site skews way too young / naive."

I'm 47...am i too old to tell you to fuck off?

Sat, 04/24/2010 - 12:35 | 316184 Cheeky Bastard
Cheeky Bastard's picture

you are NEVER too old to tell someone fuck you/fuck off. never. 

Fri, 04/23/2010 - 19:36 | 315594 girl money
girl money's picture

Goldman, Schmoldman... I wanna see similar fraud charges against JPM and MS next week!!  Then the BIG MOFO Katla volcano erupting.  All of Greece, Portugal, Germany, Italy, Ireland and Spain unemployed, in a jello wrestling match.  That is the only way we're gonna get over S&P 1300.

Fri, 04/23/2010 - 19:30 | 315616 hungrydweller
hungrydweller's picture

Nothing to see here...go back to your lives citizens.

Fri, 04/23/2010 - 19:30 | 315617 hungrydweller
hungrydweller's picture

Nothing to see here...go back to your lives citizens.

Fri, 04/23/2010 - 19:40 | 315636 Ras Bongo
Ras Bongo's picture

Change I hope to see in my lifetime: Ron Paul for President and Darrell Issa for V-P

 

 

Fri, 04/23/2010 - 20:34 | 315711 Cognitive Dissonance
Cognitive Dissonance's picture

 

Friday 04/23/2009 FDIC Bank Failure Friday

Looks like IL won the sweepstakes this week. Over $1 Billion hit to the Depoist Insurance Fund (DIF)

No one even pays attention to Bank Failure Friday anymore. It's old news. 

 Wheatland Bank, Naperville, IL
  Peotone Bank and Trust Company, Peotone, IL
  Lincoln Park Savings Bank, Chicago, IL
  New Century Bank, Chicago, IL
  Citizens Bank&Trust Company of Chicago, Chicago, IL
  Broadway Bank, Chicago, IL
  Amcore Bank, N.A., Rockford, IL

Sat, 04/24/2010 - 00:05 | 315887 Bearish Spirits
Bearish Spirits's picture

Thank you for noting the stellar condition of the banks in my metro area.  We also had four banks get warned by the FDIC today.  Broadway Bank is owned by the family of Alexi Giannoulias(D), IL Senate candidate and Obama buddy.  Could be an issue this November...

Also, a few of those banks caused hits to the FDIC of 25%-40% of assets.  A couple of the acquiring banks were MB Financial and First Midwest, both of whom aren't so hot themselves.  Still keeping an eye on Harris Bank as well.

Sat, 04/24/2010 - 09:11 | 316068 Hulk
Hulk's picture

The friday numbers are maintaining a good clip. It will be interesting to see if the rate maintains at about 8 a week. My guess is it will. You can't hide cat shit on a linoleum floor for very long...

Sat, 04/24/2010 - 09:24 | 316074 lucky 81
lucky 81's picture

heres some old news about the great squid.http://tullyspage.blogspot.com/ we have a squid in our central bank in canada too. we are screwed.

Fri, 04/23/2010 - 19:48 | 315645 Shameful
Shameful's picture

The reason for the question is why now?  The answer is easy, it's time to move a bill through.  come on people, does anyone here seriously think that GS will be hurt by this?  Pretty sure that they will settle out of court without admitting guilt.  Toss a few million at a fine and toss out a few lower to mid level lackeys.  Works great for everyone.  The regime gets to look tough and push their "reform" bill, and GS looks like it took it's lumps.  Pure theatre nothing more.  I'll start paying attention when I see Dick Fuld being criminally prosecuted, that will be the start of something really happening.  Get one of the cockroaches in danger and he will rat out the rest.

Come on people this is the SEC, we all know who really calls the shots there.  It's not like GS is really in trouble.

Fri, 04/23/2010 - 19:48 | 315646 bluewarrior
bluewarrior's picture

This is either the Goldman lobby money at work or "I oppose everything that comes from the President, whether good or bad" attitude of the GoP.

And if Issa is so concerned about information leakage and wants to put a stop to it.......the whole of Wall Street would come to a stop and on a lighter note so would all the gossip magazines.

Fri, 04/23/2010 - 19:53 | 315656 tony bonn
tony bonn's picture

"The last thing the porn lovers at the SEC need is for the IG to find both Mary Schapiro, and the President of the United States, guilty of lying on air ...."

ha!! obama lies regularly about his country of birth (kenya) and citizenship (indonesian) on a regular basis....why shouldn't the rockefeller whore lie about legislation leaks??

www.obamacrimes.com

Sat, 04/24/2010 - 09:31 | 316079 Ned Zeppelin
Ned Zeppelin's picture

O brother. What a bunch we've got on this thread.

Fri, 04/23/2010 - 19:54 | 315659 amorallybankrupt
amorallybankrupt's picture

I think Schapiro and Obama breathed a sigh of relief when they read that Issa is asking the fucking SEC to investigate.

Fri, 04/23/2010 - 19:59 | 315663 theworldisnotenough
theworldisnotenough's picture

I said it before Obama better be careful this is a dangerous game. Obama looks bought and paid for when you look at his campaign donations. that is why he is once again talking up the lie of the "small donor."

http://hotair.com/archives/2010/04/23/obama-still-lying-shamelessly-about-how-important-small-donors-were-to-his-campaign/

 That said he is currently preventing or at least hindering the type of political gamesmanship in the economy that I loathe. Will he engage in his own political gamesmanship on the behalf of businesses? I tend to think yes. Better each side have the ability to accuse the other and at least hinder the games rather than they both ignore the games and they continue unffetered. This at least marks a point when the politics is not being ignored.

Bill Clinton and Newt Gingrich sing the same song about the 90's? "We roock look at the budget and the economy." Not a single mainstream news outlet challenges them, lest their choosen side of the isle look like and ass. the repealing of Glass-Steagall, AOL , Microsoft, and Apple did more for the economy than Newt or Bill but they have been getting away with the lie for 20 years. The two sides accusing each other of financial meddling is a bit of a turning point, lets hope it lasts.

Fri, 04/23/2010 - 20:07 | 315672 Racer
Racer's picture

Give up fighting the corrupt system and you are part of the corrupt system, is that how you want to live your life?

 

ZeroHedge, go gettum... and please be the voice of the lonely isolated individual who cannot speak

Fri, 04/23/2010 - 20:24 | 315694 alien-IQ
alien-IQ's picture

+100000000000000000

Sat, 04/24/2010 - 09:19 | 316070 Hulk
Hulk's picture

Fighting the corrupt system takes its toll Racer, both on the individual and the family. I have been doing it for years, for real. Not just talk.The system has created biofilm protections. The regulatory and audit arms of the system are of the system itself. Thats why the corruption and fraud are persistent.

I'll keep fighting though, because my sense of justice demands it.

Fri, 04/23/2010 - 20:41 | 315725 cougar_w
cougar_w's picture

Issa has to walk a thin line. If he goes after the banks, he looks like a Democrat. If he doesn't go after the banks he can't look at himself in the mirror.

So he bitches about how the Democrats are going after the banks.

OK fine. Whatever turns your crank.

But do go after the banks.

Sat, 04/24/2010 - 00:17 | 315894 Al Huxley
Al Huxley's picture

Pretty sure he came to terms with looking himself in the mirror a long time ago.  Once you sell your soul, shit like that is easy.

Fri, 04/23/2010 - 21:42 | 315786 Kina
Kina's picture

If the SEC withdraw the case it would be an admission that Goldman Sachs and their kind will never be held accountable for anything as nothing will ever be bought before court.

In other words Goldman Sachs and their kind will show they own the system and are thus untouchable. So we would then be left hoping that the crimes thereby encouraged are kept in check. Maybe a crime regulator to regulate the amount of crime investment banks engage in.

 

The SEC case on the face of it seems strong, strong enough at least that it should be bought to trial.

 

If for some strange reason the SEC did withdraw the case the last hope for the persuit of justice would then be by the DOJ going on criminal charges.

Sat, 04/24/2010 - 09:30 | 316078 wyosteven
wyosteven's picture

Funny how you said "bought to sale."

Yep, they are indeed bought and paid for, just like Obama and his thug Rahm.

All these crooks need to be tied to the railroad tracks, but Buffet owns them so no trains either.

Fri, 04/23/2010 - 21:47 | 315794 Kina
Kina's picture

Really, if a company cannot be charged and bought to trial on what seems a fairly blatant case of fraud then the system is finnished. You enter the world of robber barrons and the wild west where 'this is my town, be out of it by sunset'

 

 

Fri, 04/23/2010 - 22:02 | 315803 Fraud-Esq
Fraud-Esq's picture

After ten years of doing NOTHING, Issa questions the SEC's "independence" when they file a suit. LMAO. By definition, this is a jump the shark, we're all crazy moment. Anyone who finds themselves agreeing with Issa is either too political to see this clearly or a bank. We have to do anything we can, any way we can to stop bank fraud. Period. Both parties are compromised. I'll agree with anyone applying force to banks. I don't care what party they call themselves. If we applied this little mocked up 'sniff test' to the actual criminals...the BANKS, it wouldn't even be a question. Yet, some people applying pressure on people who put pressure on banks. That's obvious. Anyone who falls into this trap either overly political or possesses unproductive suspicion. Apply that suspicion elsewhere....you'll be okay.  

Sat, 04/24/2010 - 09:35 | 316081 Ned Zeppelin
Ned Zeppelin's picture

Thank you for providing a moment of lucid sanity.  It is good to question everything about the SEC's timing and motives, especially given their heretofore "deep hibernation" status, but pu-leze, don't confuse this with innocence on GS's (or any other corrupt bank's) part.  Better scum floats on stagnant, fetid ponds.  Issa is a knucklehead, after months of appearing to be spearheading some long overdue investigation into the dark corners of the financial bail-out. Showed us who his true masters are: the banks.

Sat, 04/24/2010 - 17:21 | 316414 Fraud-Esq
Fraud-Esq's picture

Agreed. Except that to beat banks, you have to fight like banks. While it might be "good" to question everything....THIS is not the time for that. If we do that for everything, you'll end neurotic, paranoid and accomplishing nothing. We must reward ANYONE who does something to reach our ultimate goals and ends. Little things be damned. You might as well pick up a weapon for the other team if you're going to entertain the politics of enforcement on banks. The entire corporate media pushed this story THE DAY OF. This story was meant to DELIGITIMATE our legal institutions as the moment we need them the MOST. Cynical to the absolute. The corporate media MADE this story mainstream. They are dangerous. CNBC can drop the peacock and raise a pirate flag, because they led the way in attacking our police men, while defending sociopaths. I think the polticians are baiting the anti-Obama folks (if you are anti-Obama, admit it now, and learn to deal around that fact). They're baiting you to react instead of ACT against the banks. Politicians are MASTERS at the reaction game, even better than banks. Issa is running interference for Goldman's lawyers. He might not even know it anymore cause it serves TWO bosses at the same table. Out in ZH LAND, we must be as levelheaded as monks walking through the battle.

Sat, 04/24/2010 - 21:06 | 316563 Duuude
Sat, 04/24/2010 - 10:24 | 316105 seventree
seventree's picture

Few things get done by government, even necessary things, without some political consideration. I would like to see both decisive action and purity of motive, but to expect this is to live in a dream world.

Fri, 04/23/2010 - 22:52 | 315845 dan10400
dan10400's picture

The strategy now appears to re-run the porno charges against SEC staff in an attempt to discredit the SEC.   The irony is the biggest obscenity is the GS paychecks that are effectively sucked from the back pockets of the rest of us.

Fri, 04/23/2010 - 23:09 | 315856 ZEITGEIST
ZEITGEIST's picture

I Say ISSA IS damned right.......some one please tell that frekin moron Issa that they should have done it 5 years ago..if not longer..I mean what is this guy drinking..Probably Koolaid from Jonestown.......

Fri, 04/23/2010 - 23:18 | 315861 Crummy
Crummy's picture

I have little doubt that this was stored in the walk-in humidor at the White House for special occasion.

The bureaucracy enforces laws to enforce the bureaucracy

Sat, 04/24/2010 - 00:15 | 315892 Al Huxley
Al Huxley's picture

Yes, why doesn't somebody look into the timing of the SEC's action?  Because I'd dearly love to know

- why it happened right on op-ex, with record high retail long exposure.

- why somebody was able to buy $170 puts just before the announcement of the action and clear a couple hundred thousand on a couple of hundred dollars.

Just coincidence?  I doubt it.

Sat, 04/24/2010 - 07:44 | 316027 Thomas Paine
Thomas Paine's picture

"proactive"...you mean collusion to perform a charade, another lie to dupe the public.

Sat, 04/24/2010 - 08:52 | 316058 Grand Supercycle
Grand Supercycle's picture

 

DOW chart threatening to break out.

MARKET UPDATES:
http://www.zerohedge.com/forum/latest-market-outlook-0

Sat, 04/24/2010 - 12:05 | 316156 Moneygrove
Moneygrove's picture

Darrell Issa should be looking for the wmd`s in iraqnam !!!!!!!!!!!!!! fool !!!!!!!!!!!!!!!!!!!!!!!!

Sat, 04/24/2010 - 12:09 | 316161 David Fiderer
David Fiderer's picture

Darrell Issa is a cheerleader for financial McCarthyism used to deflect away from the GOP's post-Millennium failures. He has smeared Chris Dodd, Tim Geithner, ACORN and others on the flimsiest and most fraudulent of pretexts. His substance-free allegations against the SEC are par for the course. The congressman representing Ground Zero for the real estate bubble, Riverside and San Diego counties, voted against laws to curtail predatory lending.  

He's also a graduate of the Tony Soprano school of business ethics. http://articles.latimes.com/1998/may/23/news/mn-52746

Sat, 04/24/2010 - 15:39 | 316342 colonial
colonial's picture

There are a few things missing here.  Among them are the following:

The WH hides its actions when interacting with independent regulatory agencies.  It will be virtually impossible for the SEC IG to investigate this.  Do readers here know how many staffers the IG has?  Its a handful.  He's going to investigate the Enforcement Division, The Commissioners, The Treasury and the WH?  Come on...no f'n way.

The SEC IG is no savior here.  Even if he found something he will punk-out in the end.  He gets into these investigations and always comes up short.  He wants to be the crusader, right up until the point where it means finding something really serious.

What is also continually  missed is that the timing of the release of the suit was also related to one of the SEC IG's own reports!  Not the porn, but a report where he discovered that the SEC knew about the Stanford fraud for YEARS but did nothing.  On top of that, the attorney with knowledge of the case left the SEC and went to work FOR STANFORD.  On any other day that would have been terrible press for the SEC, but not on the day they go after the Gold men. 

Sat, 04/24/2010 - 18:19 | 316474 Fraud-Esq
Fraud-Esq's picture

"It will be virtually impossible for the SEC IG to investigate this" Really? Should we just quit now? 

While I agree the SEC is no savior, why ATTACK them when they actually file suit. I don't remember this when Ken Lay was arrested and this was just a civil suit!

This is just a simple age-old attempt to challenge the legitimacy the people who control the handcuffs before it's too late. Too late, being a good thing for the rest of us.

Back off enforcement actions and press for more, don't undercut them. It only helps the people who stole from you for ten years

Sat, 04/24/2010 - 18:30 | 316482 Fraud-Esq
Fraud-Esq's picture

Let's just get to the real point here, folks. They don't want to go to jail or pay back the fruit of their fraud. They are connected. They don't like to lose. They have full access to mainstream press. If they go on teevee and say "the government is not legitimate", they sound crazy. So, they whisper insidious stories instead to reach that goal. The PRIME story from the mainstream press after the Goldman suit was the TIMING of the POLICE not the crimes of the criminals. The media is compromised. They are manipulating people en mass. If bankers go to jail, they will call them political prisoners. That is next. They will tell you the prisons are not legitimate any longer because they contain bankers and wealthy people who are being used for a political agenda. Lost, again, will be the great details of the crimes. The propaganda model is as certain as rain. The Goldman media pushback was only the FIRST example of the propaganda model dealing with enforcement after the Epic Theft and Crash of 2008. Study it, you will see it repeat over and over. You must learn this game. Learn to identify it, name it, and expose it. That's the only way to beat it back. 

Sun, 04/25/2010 - 18:11 | 317246 dumpster
dumpster's picture

Darrell Issa  demands

 

pretty please would you . in a demanding little voice .

get me the crooks.. please before i go on spring visit to the home folks .

i aint kidding this time , if its all right with your guys lol... I am fuming .. (are we off camera yet )

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