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Goldman Statement On SEC Settlement
Goldman Sachs Statement on SEC Settlement
15 July 2010
Goldman, Sachs & Co., the broker- dealer, has agreed to a settlement with the U.S. Securities and Exchange Commission to resolve the SEC’s pending case against the firm relating to disclosures in the ABACUS 2007-AC1 CDO offering. The settlement is subject to the approval of the United States Court for the Southern District of New York.
The firm entered into the settlement without admitting or denying the SEC’s allegations. As part of the settlement, however, we acknowledged “that the marketing materials for the ABACUS 2007-ACI transaction contained incomplete information. In particular, it was a mistake for the Goldman marketing materials to state that the reference portfolio was ‘selected by’ ACA Management LLC without disclosing the role of Paulson & Co. Inc. in the portfolio selection process and that Paulson’s economic interests were adverse to CDO investors. Goldman regrets that the marketing materials did not contain that disclosure.”
We believe that this settlement is the right outcome for our firm, our shareholders and our clients.
We understand that the SEC staff also has completed a review of a number of other Goldman Sachs mortgage-related CDO transactions and does not anticipate recommending any claims against Goldman Sachs or any of its employees with respect to those transactions based on the materials it has reviewed. We recognize that, as is always the case, the SEC has reserved the right to reopen those matters based on new information.
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Legalized fraud with a cherry on top. How nice. I know of no individual who could get away with that.
I lack the words to describe how this makes me feel. I am past outraged. I guess just sad and dejected.
I hope there's a revolution. I will join it.
Still cant believe the $500MM amount.
ITS 3 DAYS OF REVENUES FOR GS!
Did the SEC think this being labeled as 'biggest fine yet' made it any harsher?
"Biggest fine yet" = two slaps on wrist.
If I were to be caught stealing a can of spam from a store, by comparison, I would get fined at least a full weeks pay and would never be offered a plea deal to avoid admitting guilt. I would have a criminal record too.
"right outcome for our firm, our shareholders and our clients."
Check out the Ordinal Sequence for just whom the settlement is "right".
Dr. Freud was here.
Proof Positive:
There Exists a Power Elite.
Prima Facie, QED
They bury Galleon and Goldman just walks.
Makes me just sick to my stomach.
Bastards didn't even give us the reach around......
Galleon is the much smaller sacrificial lamb. Their 8 billion fraud barely covers a third of the Squid's bonus pool.
And how many Galleon alum collect paychecks from the guvmint??
Dick Bove bitchez!
OT: It looks like whatever Obama does in the future is going to have a lot more challenges from the states:
http://www.realclearpolitics.com/epolls/2010/governor/2010_elections_gov...
This sets bad precedents...I guess they can get away with anything now if there's always a back door out. Hell, even Timmy got away with tax evasion....too bad if you did that, you be in the slammer with probably a bunch of guys looking to get into your back door.
Sets bad precedents? Hell its what makes people into suicide bombers.
If you're caught cheating on your taxes, refer to the Timmy rule.
What are they going to say? A precedent is a precedent.
America is sliding into anarchy.
I just can't get over this ruling. My anger is beyond belief. I am going to kick the dog. I am surprised there is not someone taking a 9mm on their way to work. That's how mad I am.
Dont kick the dog, he had nothing to do with this travesty. Well, unless your dog's name is Blankfein and he screws around with the other dogs in your neighborhood.
*
Made me blow green tea out of my nose....
It was a marketing materials malfunction. It could happen to any legitimate firm trying to move through the fog of complicated deals. All is well now. We have a new marketing materials manager in charge.
Perfect summation.
And now every recommendation of an investment will come with a 2 hour presentation of disclosures and a thesaurus thick prospectus. But the inventors will all be safe cuz fault lies with the marketing materials compilers and distributors. Those with the $35K annual salary and no bonus. The inventors can still count on the 7 to 10 figure compensations. Building a bigger bonus pool all the time. Planning for another bailout soon too.
The PTB seems to be flying pretty close to the sun here. First, the timing (the day FinReg passes) is just a bit too coincidental.
But the real point is - how much will this further quietly enrage the mom-and-pop investor? Clearly the system is rigged. GS is the squid, but the preferred squid.
Wonder if they are trying to keep the market up for ... how much longer ... before the final flush where they take over all of the defaulted assets.
the finreg opex secset double shuffle pump up bitchez!
Nice.
I just wish for the complete destruction of it all, hell Id cheer a 747 directly into Wall St I'll never participate in anything having to do with this country again. Done.
Perfect political timing for the verdict, using the announcement of the financial "reform" bill as cover.
"And now, back to recommending the worst possible trades to these very clients"
Need to revise to:
"And now, back to recommending the worst possible trades to these very clients...while taking the other side"
Gotta let them keep money for political contributions, don't bite the hand that feeds
When will we purge this leach from our nation.
So they made a few billion and got fined a few million. Goldman gets away with hurting so many people once again...
it simply confirms that they truly own the system.
If the SEC had a case, they would not have settled for $550 MM, and they would have demanded resignation of Lloyd or Gary Cohn or both. They obviously did not have a case that was going to stand up in court.
It is unfortunate that this outcome is inconsistent with the ZH GS' narrative, but it's time to get over it.
"If the SEC had a case..."
They wouldn't fucking know what to do with it.
It's time for a new executive branch , each 4 years until someone finally "gets it". The rest of the comment is pure unadulterated GS knob polishing complete with swallowing.
Well said, Mrs. Blankfein.
you are right they dont have "a" case, they have 10,000. they dont "demand" anything except access to porn. have you been to court? often you dont have to "stand up." just drag the victim in. you think GS is a sympathetic defendant? civil cases have a low standard of proof. the SEC could file dozens of cases a day.
this is about creating the appearance that obama is saving the public from big evil banks who just happen to give him millions in campaign contributions.
So how much $$$ did GS make of this possible fraud an how much were they fined without admitting guilt or anyone going to jail?
Laughable.
GS was asked to take responsibility for their actions. Just think where they are going to. Not where they are.
http://www.youtube.com/watch?v=EqP3wT5lpa4
Gonna get you!
“To the last, I grapple with thee; From Hell's heart, I stab at thee; For hate's sake, I spit my last breath at thee”
-Some American Guy
But should they lose their licence to operate ???
I think the SEC has solid grounds to deny them.
AKA - Arthur Andersons - oh thats right - change the name on the shingle and move on
Looks like our taxes are going to be raised again...
Nah, that's why the fine is so low.
Sooooooo, it is OK to defraud and mislead investors, as long as you pay off in a so called "settlement" occasionally, and since you don't "admit" any wrong doing, you don't have to be barred from the industry forever?
!@#$$%%^^ .....but what good does my anger do?
next time you get caught robbing a bank remember the GS defense - it was just a "mistake."
just like the current cool line that certain political leaders lies are
"misstatements"
the marketing materials clearly indicate that the bank you robbed understands and accepts the risks invoved of being open for business. If they didn't want to get robbed, they shouldn't have been open.
I love how "buyer beware" becomes an excuse for fraud.
Look Mama, they had the gall to spit on my shoes!! Wait for the opening bell Monday.
Put a little more steam in the boiler. Pompeii was nothing compared to when this thing goes off. Milestones
Where does this fine go?
To the SEC?
To the general budget?
To the "Taxpayers"? (hahah I love that... like 'taxpayers' are an autonmous group)
To buy /ES? (AHH! So that explains the market pump!)
To buy treasuries?
...because all these seem to come full circle...
They should have fined GS one day of prop trading. Asset freeze for one single day. I would have loved to see that.
We would really be better off without the SEC. Investors would then actually realize that no one was looking out for them and might do their homework. The problem now is that there is a misconception by investors that someone is protecting them.
"We didn't do anything wrong and here's a tip for being so understanding."
It seems Goldman hangs out this Frabrice Tourre guy out to dry.
Great, perhaps we'll have a whistle blower.
"......We understand that the SEC staff also has completed a review of a number of other Goldman Sachs mortgage-related CDO transactions and does not anticipate recommending any claims against Goldman Sachs or any of its employees with respect to those transactions based on the materials it has reviewed. We recognize that, as is always the case, the SEC has reserved the right to reopen those matters based on new information......"
Well come on SEC, the Squid has given you the green light to open up another one -once a month for $500m -or double it compound for each transgression.
So lets hear from you Monday, bet there a dozens of these scams.
I would also fine them for the contempt of the GS statement of non-guilt.
KICK THESE DOGGIES http://williambanzai7.blogspot.com/2010/06/best-of-wall-street-breeds-go...
No nation however powerful, any more than an individual, can be unjust with impunity. Sooner or later, public opinion, an instrument merely moral in the beginning, will find occasion physically to inflict its sentences on the unjust… The lesson is useful to the weak as well as the strong.
Thomas Jefferson
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