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Goldman Prepares To Fight Carl Levin Allegations Of Massive Housing Short, Will Release Trove Of "Evidence" It Is Innocent
As Goldman stock probes new lows every day, and in passing news has just announced it would sell its largely irrelevant Litton Loan mortgage servicing unit to Ocwen financial (which was named so after the founders could not come up with a name so they inverted Newco, but that is a story for another day) for $264 million but retain any potential fraud liability, the firm is now expected to release its own trove of documents expected to "defend" the firm from the various allegations presented in the Carl Levin 639 page report. The report has already served as the basis for a subpoena lobbed at Goldman, and which some predict will have a much lower threshold of proving guilt courtesy of New York's "Martin Act" has pushed the stock to a one year low. It was only inevitable that Goldman would come up with some jiggering of its numbers to prove that it was in fact innocent. We wonder if the report will also provide an explanation for the following words by one Deeb Salem, a Goldman trader in the structure products group: "We began to encourage this squeeze, with plans of getting very short again." Swenson, Salem’s supervisor, sent e-mails in May 2007 urging traders to offer prices that will “cause maximum pain” and “have people totally demoralized.” In interviews with the committee, Salem and Swenson denied attempting a short squeeze, the report said." Regardless, we can't wait to see the latest attempt to obfuscate the public opinion with the mixing of apples and oranges. Alas, Goldman may be surprised to find that the general population is not quite as dumb as it expects this time around, and there will be those who will gladly cut through the fluff of any posted rebuke within minutes.
From the WSJ:
Goldman is now considering releasing documents about its mortgage bets that are aimed at showing what the securities firm's officials claim is sloppy math and incomplete analysis by the subcommittee as the panel sifted through tens of millions of documents turned over by Goldman.
The information might be released soon on Goldman's website, though a decision hasn't been made yet. Even if the documents aren't made public, they could be used by Goldman to defend itself in ongoing investigations that appear to be linked to the Senate subcommittee's report.
A subcommittee spokeswoman declined to comment.
One of the most dramatic documents released by the panel is a chart showing the size of Goldman's overall long or short bets on the housing market. While those bets varied from day to day, the Senate subcommittee said Goldman had net short positions of $10.6 billion on Feb. 26, 2007, and $13.9 billion on June 25, 2007. The June 25 position was the company's biggest bet against the housing market, according to the Senate subcommittee.
Goldman now plans to contend that both figures are wildly inaccurate, claiming Senate investigators overlooked or ignored bullish mortgage trades held by the securities firm, these people said.
Zero Hedge, for one, can hardly wait for the release of these documents...
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It's good to know that Goldman is innocent of any wrongdoing...
I'm out of order ? YOU'RE OUT OF ORDER!!
http://www.youtube.com/watch?v=BofddwtPBPw
In the end, Goldman will receive a humongous fine of .00001% of its income.
it's just a matter of time. there will be perp walks, and it will mark the start of a legit bull market.
And then you'll wake up and realize you were wet deaming and clean yourself off. Only way there will ever be perpwalks here from banskters and corrupt politicians are at the end of a pitchfork from a million plus or so of your fellow Americans and that aint.gonna.happen.ever. Americans are too spineless and weak.
I couldn't agree with you more. Although I think it's more likely that mayhem with guns, that will be called civil war, will break out between "liberals" and "conservatives," i.e., we, the Terminally Duped. Lloyd, along with Ben & Hank will be sipping cocktails in the Caribbean, while we're replaying Gettysburg.
what did Goldman do, only turn over incriminating evidence before?
GS apparently assumes we're ALL freaking morons and they can pass off every sugar coated turd as French confections! Very dangerous assumption.
dangerous? they have been proven right time and time again as we are let down by our politicians and legal and regulatory systems
'Proven right'? No they just havent been prosecuted yet.
meant that their assumption that it will all go away has been shown to be correct time and again. sorry.
Oh right...well yes Goldie gets away with whatever because of our cowardly watchdogs and politicians who have allowed themselves to be purchased by those theyre supposed to be protecting us from...traitors!
Ah yes, the ol' Whizzo Quality Assortment
LLoyd:"Well it DOES say 'Crunchy Frog' right on the box..." (nestled lovingly in the bosom of the fine print, right underneath 'QUINTUPLE AAAAA RATED')
It figures that those with no morals would want to "have people totally demoralized." Similarly, those who claim to be without vice are usually the most vicious.
Headline reads : Blankfind says dog ate the records but we have this bag of shredded documents....have your people call my people @1-900-getscrewed
Only if god's work includes being a kawksucker then they are indeed correct.
They need to go.
Lowest form of humans. Oh wait, some are reptilian.
Explains the lounging rock in the lobby near the heat lamps.
What is the limit on Giant Squids this season?
DC politicians tossing handfuls of fecal matter at criminal syndicate Wall Street bankers. How much are the front row floor tickets?
For they are the victims here, never forget!
time for HR01010101: public critisim of Go(l)D(man) is illegal and shall be punished with 3-5 years in prison or 2000 hours of compulsory labor at the FED`s prinitng press.
have they shorted their own stock
or maybe a cds
They called it project ''name change'' last time, known as ''Subprimus''.
http://www.youtube.com/watch?v=lo-WjUjzV_Q
It will only be released to people on a need to know basis, because if the information became too well known it could cause calamity for the capital markets. So to save mankind, they will make sure the information is sent only to a few high placed officials and will take the time to explain to them how it works. Then those politicians can say everyone was wrong, Goldman is good, and it is in our own interest not to let the details out.
Then in 2 years they can hope we don't remember their names when they take posts as GS MD's.
You sir are 100% correct. Nice concise description of how the game works with these sociopaths. You forgot the part where those same politicians can trade on that inside information and make themselves even wealthier while all of this is going on. It's good to be king.
This info on Goldman is pointless. GS will never be indicted on any criminal charges. Who is spewing Hopium now.
As soon and the evidence is manufactured it will be released for all to see. Touche!!
Dream on!
Yes, kind of like birth certificates.
del
I used to work for Ocwen (across the street from the Jehovahdome in WPB). They were notorious for "purchasing" non-performing assets and using hard-ball tactics to collect. Registered as a bank, they took deposits from no one.
I see....so although right before the housing collapse GS was $14 billion short, their argument is they were bet even LONGER the housing market at the same time!
Wow I cant wait for this 'evidence' to be released....sharpening up my harpoon for squid season.
Ceterum censeo Goldman Sachsem esse delendam
Fabulous Fab is gonna get thrown under the bus.
Sen Levin will get a feather in his hat for 'taking on the squid' ( he is up for re election), and Goldman will have a chance to not only vindicate themselves, but show their investors that they are innocent of wrong doing. At worst they will settle without having to admit to anything.
Move along now..,
Carl Levin is just as big a piece of shit as Goldman is.
;Part of the show, and it looks like plenty of people are buying tickets.
My take on Carl Levin differs a bit from yours. He's been a senator since 1979. 32 years. Do you honestly think he even cares if he gets re-elected? Naturally, he's a shoo-in. He could butt-rape Blankfein in the middle of Ford Field before a sold-out crowd and still get 60% of the vote.
Levin likely had a moment of clarity in seeing American ideals being torn to shreds by the people who finance his campaigns and has likely had enough, even if that means going down in flames along with them. He knows right from wrong - thankfully, somebody does - and would like to see the Wall Street wrongs corrected.
I'm usually completely cynical when it comes to government, but I just have the feeling that Carl Levin may have had his very own epiphany, probably knows lots of people who have had their lives destroyed by the banking cartel - he's from Michigan, remember - and wants to go down in history as maybe one of the last remaining "good guys."
Now, as for that toilet detritus Eric Holder, he is a very large, smelly turd.
doesnt even mention selling the crap to their clients and then betting against them ......HANG THEM !
Will we all be Greeks now?
Amazing what people can do with computers, dates, spreadsheets, documents these days. Take robo-signing affidavits as only the first step. Banks are now counterfeiting promissory notes, etc. according to Abigail Field at Fortune has made the case in an article from Friday:
http://finance.fortune.cnn.com/2011/06/03/at-bank-of-america-more-incomp...
See the fifth paragraph from the bottom for details, but definitely read the whole story which points out just how badly BofA is going to be skewered by their Countrywide mortgages.
Here in NY, attorneys have to attest to the authenticity of their clinets' documents, so, if you have been waiting for the right time to default on a CW mortgage, now's the time because BofA is going to have a very hard time finding legal representation. Somehow, most lawyers just aren't prepared to risk their standing with the bar in exchange for a few fees on some really bad foreclosures.
As for Goldman's purported document dump, who's to say that whatever they produce wasn't just made up and printed out within the last three weeks or three months? There's nobody overseeing them.
In general, one cannot trust the veracity of any printed document these days. The banks have poisoned the well and there's no going back now. Fraud is rampant and now standard procedure.
Prepare for all out war in the courts, though I don't believe our current jurists (well, maybe here in NY, but I doubt elsewhere) are prepared for the onslaught of litigation and the mountains of phony documents that will be unleashed.
A trove is right. Last time, the fags at Goldman Sachs turned over literally millions of pages of paper to parse. In other words instead of being grateful or showing contrition, nothing but spite was the action after their charter was bent/changed and taxpayers came to their record bonus rescue.
These collusion-crooks need shut down, and then the questions can be asked, otherwise the usual waste of expenses and drawing out time past the statutes of limitations is the ony play in the book.
Goldman fraud fucks have burnt every bridge with this taxpayer.
Let them rot in cells in California.
Let them rot in cells in Alaska not California
Fining Goldman, Jo Morgan etc is nonsense. The executives concerned should go behind bars and they should be barred from whatever trade they have been caught at.
Have they not learned that there is a right time to just STFU?
Do they think they are playing to the public? When has Goldman ever been a public company?
The more they protest with thin arguments the more credibility they will lose. There is a smoking gun and they have already released millions of pages of evidence. So, did they just magically find something new?
They probably want to go private again. They need to tank the price down, though.
Goldass ballsacks will stay entrenched in all things money and government. They will linger for everybodies lifetime, like a big bad fart.
Goldman need not STFU. They need to fight fight fight, and not using legalistic crap, but by using the evidence. I totally believe David Viniar when he says they didn't know what their net beta was to subprime on certain days. How the hell do you know how these securities would act in an unprecidented crisis? If there is one group of people that is certainly less trustworthy than investment bankers, it is politicians. What a dog and pony show.
Here's a link to the full 600+ page Carl Levin/Tom Coburn committee report on Wall Street including Goldman Sachs if you haven't seen it.
http://tradewithdave.com/?p=6811
Dave Harrison
www.tradewithdave.com