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Deutsche Bank's Josef Ackermann To Testify In IKB Trial As France Mulls Goldman Probe
The bottom is about to fall out for Goldman. First Reuters reports that Deutsche CEO Josef Ackerman will be asked to testify in relation to the near-collapse of German IKB, a bank that has gained sudden notoriety for being implicated in the alleged Goldman CDO fraud as a dumb buyer of anything pitched to it. As Deutsche Bank has previous been blamed for the near-collapse of IKB by its former CEO Stefan Orstfein, would not be surprised if Josef takes this chance to join the "blame Goldman" bandwagon to deflect attention from himself. Ironically, Deutsche Bank is certainly not without blame as its CDO-desk managed by just departed Greg Lippmann was one of the powerhouses in arranging Abacus-type deals in the 2005-2007 time period. And in separate news, again Reuters notes that France is the latest, after Germany and the UK, to "mull" a Goldman probe. Whether British, French and other German companies will follow in BayernLB's footsteps and stop trading with Goldman remains to be seen. Certainly, there is an element of politics to all such actions, and political players in Germany and the UK are most in need of populist electoral boosts, while France not so much, at least for the time being.
From Reuters:
Deutsche Bank AG's Chief Executive Josef Ackermann will be asked to testify at a trial examining the near-collapse of IKB Deutsche Industriebank AG , a bank eyed by U.S. regulators for its dealings with Goldman Sachs Group Inc.
Brigitte Koppenhoefer, the German judge who oversaw an earlier trial examining Ackermann's role in awarding eye-popping bonuses to Mannesmann executives, is calling a raft of witnesses to testify in the IKB trial currently underway in a court in Duesseldorf, Germany.
Ackermann and the court have yet to arrange a date for his appearance, a court spokesman said on Wednesday. Deutsche Bank said Ackermann is ready to appear as a witness.
IKB's former chief executive Stefan Ortseifen, who stands accused of misleading investors about the perilous state of IKB's finances in the summer of 2007, has blamed Deutsche Bank for the near collapse of the Duesseldorf-based lender.
Ortseifen told the court that Deutsche's decision to cut credit lines for IKB on July 27, 2007 caused "immeasurable reputational damage" for IKB, crimping its ability to function normally in nervous markets.
Deutsche Bank rejects accusations that it was the cause for the crisis at IKB.
And also from Reuters:
France could become the latest country to examine whether Goldman Sachs Group Inc defrauded investors in marketing a mortgage investment product while the hedge fund that played a key role in the deal moved to head off investor concerns.
Goldman is being investigated by the Securities and Exchange Commission (SEC) and Britain's market watchdog, which launched its own probe on Tuesday.
The accusations warrant a full probe by French regulators, Economy Minister Christine Lagarde said on Wednesday. Regulator AMF (Autorite des Marches Financiers) said earlier this week that it planned to co-operate with the SEC over the Goldman case if necessary, adding on Wednesday that it aimed to publish an update on the probe next week.
Last but not least, one should recall that Goldman is pending investigation for its involvement in arranging various Greek swaps that fooled EuroStat in believing the country's debt picture is much more aggreable than it was in reality. Lloyd must be wondering if being the dominant market making monopoly in virtually every flow product (not to mention flawless prop trading desk) is really worth all the hassle.
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From what I've been reading, it seems that many in the UK have been actively blaming the whole downturn on the US and its banks since 2008. Hard to imagine they'll pass up this opportunity to go after Goldman and whatever other targets present themselves.
The whole world knows we dump out shit on them via our big IBs, this literally just opened the floodgates. Gonna be fun to watch.
"The whole world knows we dump out shit on them via our big IBs"
Correcto muncho ...
That is called in the US "capitalism" ... f%#k the world f%$k everyone as long as we can make a profit!
Problem is that the spread of septic tanks toxic shit leaves a really bad taste and the world will never see justice as there is no such thing as ethics or morality in anything that you lot do!!!
Blood in the water,,hmmm, Merriweather's revenge.
We seem to be rapidly approaching criticality.
But will we have a high-order detonation, or a fizzle?
After watching yesterday's circus with Lehman - with cute little congresswomen asking Fuld questions like " did you ever short stocks?"!!! That was a pathetic moment indeed. Perhaps we shall have to rely on foreign courts to do the sharp, hardnosed probing that our regulators just cant seem to do?
HAHAHA, ya i commented that exact same thing in yesterday's thread..
Honestly people like that should not be allowed to ask questions.
Im not on Fuld's side here, but he should have laughed and asked 'next question' or just looked away. The sheer stupidity of the question (as if it was a comment implying immorality...) amazes me, and im sure it stupified him as well.
T thought she was asking if he wore short socks. Seemed a perfectly reasonable question to ask a Wall Street banker. If you make that kind of money you should be able to afford the right sort of socks.
Of course France will mull a Goldman probe, they have bonds to sell!
OOh La la!
Et le voila!
PARIS, April 21 (Reuters) - Accusations that Goldman Sachs (GS.N) acted fraudulently warrant a full probe by French regulators, Economy Minister Christine Lagarde said on Wednesday.
The French have also been pushing to establish a European trading center operating under European regulations in a European country (read France). They are quite unhappy with the fact that all money kingpins are sitting over in London when they really should be seated over on the left bank of the Seine.
The fact that the fab Fab was French just goes to show what the French are truly capable of. Vive l' Euro Libre!!
the douchery of the french is unparalelled.
They have the freakin EU parliament there as a god damn jobs program~!!
The city of Strasbourg (France) is the official seat of the European Parliament. The institution is legally bound to meet there twelve sessions a year lasting about four days each, other work takes place in Brussels and Luxembourg City (see Location of European Union institutions for more information).
Allthe work takes place in Brussels, but everyone has to go on field trips to france.
EU gives DC some good competition.
Zero- Yeah Fuld was tempted - you could see him physically restraining himself from expressing himself in a stream of 4 letter words like i the good old days. So he said " you mean me personally?" hahahaha. "umm umm no I mean your company LAYman" - ha ha ha ha
IKB and the German banks. The truth behind it is that as TD reports, they have been dumb buyers.
Not only did they invest in products they did not understand, but they signed papers in ENGLISH when all they could mumble in this language is a timid Hello. (yes, yes in the words of TD: you are not dyslexic). Some 60+ fat old bankers off to the US of A to make billion dollar deals that destroyed them.
Fuld should have quoted from the "Jerk" - "
Huh? I am not a bum. I'm a jerk. I once had wealth, power, and the love of a beautiful woman. Now I only have two things: my friends and... uh... my thermos. Huh? My story? Okay. It was never easy for me. I was born a poor black child. I remember the days, sittin' on the porch with my family, singin' and dancin' down in Mississippi.
lol
Is it just me, or is the scum at CNBC and The Street "AKA Cramer's Cronies" the only ones who are trying to justify Goldman Sachs? Every news article I read, condemns Goldman Sachs and the rest of the big crooked bankers, and yet these two entities keep right on trying to defend Goldman. It's not like Goldman Sachs has a wonderful reputation to begin with, they have been involved in so many cases over the years its pathetic, they were just able to weasle out of them before. Not this time. And there needs to be criminal charges filed by the DOJ.
A view from Europe: remember IKB bought the
Abacus shitload in April 2007, and that Ackermann
is the most powerful banker, with the Spanish Botin
on this side of the pond. It may prove to be a
good eye-opener for the SEC about the Deutsche
Bank's businesses in the States-past an future-rumoured
to be massively underwater in CRE in the U.S
GS is involved in a fishy deal backing a company
involved in Berlin real-estate, so more shit will
hit the fan. As for the U.K, as I admire Adair Turner
directly taking the step,I have to reminf that
Alistair Darling has publicly declared that GS-I
London will remain an adviser to the British
government until further legal notice.
It may well be that GS helped the UK in
"window dressing" its public debt-also one
will want to remember that the same Darlin
vetoed the intended Lehman takeover by Barclays
for reasons that even H.Paulson will not reveal,
shortly after Barclay's got the parts of Lehman's business
it was after, on much friendlier financial terms,lol
"Lloyd must be wondering if being the dominant market making monopoly in virtually every flow product (not to mention flawless prop trading desk) is really worth all the hassle."
Lloyd must also be wondering whether he prefers British prisons, French prisons, German prisons, or Greek prisons: the food, the climate, the prison decor, the caste of the inmates, etc.
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