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Regulatory Crackdown On Goldman Begins
First the Fed, now Goldman Sachs. Hot off the presses:
Examiners at the Financial Regulatory Authority, the industry
self-regulatory body known as Finra, and the Securities and Exchange
Commission intend to ask Goldman for more information on these weekly
get-togethers, people familiar with the matter said.
This of course is in relation to the article that the WSJ printed yesterday on advance research looks that Goldman was providing to its preferential clients.
The huddles currently aren't disclosed in Goldman's long-term research,
although the firm Monday discussed adding disclosure on its client Web
site about the service. Some other firms, such as Morgan Stanley, also
give stock ideas to clients, but disclose the service in their
longer-term research and on their Web site.
Securities laws require firms such as Goldman to engage in "fair
dealing with customers" and prohibit analysts from issuing opinions
that are at odds with their true beliefs about a stock. Research
reports can often cause a stock to rise or fall.
Can someone please explain how FINRA and the SEC would actually chase the perpetrators of market injustice if it wasn't for the occasional articles in the mainstream media and the blogosphere providing them with the blueprints from A to Z of exactly how the big, "entrenched" firms game the "efficient" markets day in and day out?
Last time we checked, the SEC's 2009 budget was almost $1 billion. What the hell does this money go for aside for covering up massive market malfeasance and catching an occasional Ponzi after decades of ignoring incriminatory materials?
It is time to analyze whether the US public has any use for such worthless and expensive organizations as FINRA and the SEC, if at the end of the day the only way to fix a broken system is via a thousand "citizen's" cuts and bypassing Schapiro's utterly useless enterprise, whose only purpose is to serve as a springboard for cushy Wall Street General Counsel jobs.
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I think the overseas market just 'misinterpreted' this news. The PPT might have to lay off the snooze button tomorrow, but it will be corrected. Someone has to be instructed that when you tank the USD/JPY, you have to follow-up with a corresponding amount of buying in 'risk currencies' vs the USD (or more, preferably). 6am-ish bears watching, again - if the London open doesn't already have it taken care of. The day that the FX risk trades don't bounce up to positive after a down night will be one to key on.
GOLDMAN SACHS reputation now officially compete's with child molestors....yes, that might not be harsh enough.
YOUR OWN CLIENTS Goldman!?!?! Scum of the scum...really, post after post you guys seem to reach new levels of filth and greed once only reserved for Washington.
Ever hear the term 'don't bite the hand...?'
Well that is assuming you have ANY clients left that are stupid enough....
If they slap Goldman on the wrists I am going to lose my mind.
FINRA and SEC I f*&king dare you!
As Tyler mentioned my I go one step further in how you actually do it....
Get the tapes, get the trades, phone records, emails, depose people/sworn statements, seperate them in rooms, FBI style...DO YOUR FUCKING JOBS!
OK, well if it is true that the owners of the privately held Federal Reserve corporation, (worth about 1.5trillion dollars) own half of the DOW plus the majority of all hedge fund interests, then think about it--Goldman really only needs the corporations, LLC's LLP's and trusts that are owned by this group of robber baron/banksters and they are forever set--policy will always be fixed, they are completely above the law.
Meanwhile, 99.9999% of the US Citizens have no idea that the Federal Reserve is owned privately, and their newly appointed X-Enron Lobbyist is busy thinking up new ways to approach the coming bad publicity for this Goliath monopoly/cartel or whatever you want to call it, it is NOT GOOD.
Current odds favor that the new name of the Dow Jones Industrial Average after its sale will be the Federal Goldman Intervention Composite. Focus groups have had high approval ratings of the acronym and its relation to other newly established government programs with the same intent. Others have stated that they feel like the FGIC index somehow confers feelings such as 'guaranteed' and 'insured.' While this cannot be publicly inferred or endorsed, it is viewed as a positive development.
Awesome Gilgamesh--
is it live or is it Memorex--so real, one has to pause and remind one's self that it is a joke.
lol... that could be in The Onion... I think you have a new career ahead of you...
let us review new information and take a look at the week ahead, in order to make some sense
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions
+ 10 fucking quadrillions for this post; the beautiful rage !!1
Ain't nothing gonna happen to the GS boys. NOTHING. Our reg agencies are a joke and their resolution to this will further prove that statement.
This will be worth 100 spx points Tuesday.
ok here is my new broken record routine: please consider the facts that eleven1 found listed below--and if you will please get someone to focus on the truth that with the size of the financial service funding for politicians, is there any way a politician would be "independent' enough to oppose what this group wants? The Fed and its agents control all policy, and the truth needs to be on the table for all to see...with the kind of money that is made by having laws conform to your desire to gamble, then when you lose, you get more money from government for the next bet, there are no other words than massive, systemic corrupt to describe the whole foundation for the financial services industry...
eleven1 said ( on Sun, 08/23/2009 - 20:5 #45827)
according to opensecrets.org
http://www.opensecrets.org/orgs/toprecips.php?id=D000000085
these are some of the people who pledge allegiance to GS. 2008 election cycle ...
Senate Obama, Barack $997,095 (AKA 'Change You Can Believe In')
Senate Clinton, Hillary $415,750
Presidential Romney, Mitt $234,275
Senate McCain, John $230,095
House Himes, Jim $152,798
Senate Dodd, Chris $112,500
Presidential Giuliani, Rudolph W $109,450
Presidential Edwards, John $68,750
Senate Specter, Arlen $47,600
House Emanuel, Rahm $37,750
Senate Sununu, John E $31,400
Senate Reed, Jack $30,100
House Skelly, Michael Peter $26,171
Senate Baucus, Max $26,000
Senate Harkin, Tom $24,580
Senate Lautenberg, Frank R $24,100
Senate Chambliss, Saxby $22,400
Senate Collins, Susan M $21,900
Senate Warner, Mark $21,800
Senate Landrieu, Mary L $20,700
·
then I asked eleven1:
That is great, but could you add together ALL of the Federal Reserve member banks, and primary dealers and take a look at how this group compares to the total of all contributions for each candidate?
I think you would find that it is the backing of the private Federal Reserve and all their affiliates and agents which buys most politicians, and as such, this cartel basically controls all policy. That is why it is such a ridiculous red herring for all of us to hear about how important it is for the Fed to remain "independent". The translation of that is, how important that the Fed's money and powerdominating train doesnt get disturbed.
and eleven 1 replied ( on Mon, 08/24/2009 - 08:29 #46069 )
this is what i was able to find quickly.
http://www.opensecrets.org/industries/indus.php?ind=F
the financial services industry select strategic campaign contributions in the last 20 years ...
Total $2,274,622,193 Democrats $1,017,919,054 Republicans $1,243,672,592 effectively neutralizing the ballot box. there's nowhere we can go to vote this down. the US government is the REAL vampire squid brokering our life blood.
you might dream of meaningful non-cosmetic change, but that's the only place it will happen. in your dreams.
I replied:
It doesn't matter which party wins if you buy both parties!
ya but what about the Michael Jackson situation - apparently there was foul play - and when you're done with that prepare for A-H1N1 PandemicFlu to steal the headlines - here's a projection - while everyone is hiding behind N95 respirator masks fearing the black death - congress will ram through cap and trade, some sort of health reform bill and Timmy's new "tough" financial regulations - meanwhile Summers will displace Benny - and Goldman will have had record profits in H2 from shorting the market - and when we come out of hibernation in March we'll all be wondering what the H happened
/agree
just a pal
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions
I'm thinking of a PolPot kind of solution. This would be a black swan event as some like to call it but there is precedent and where there's precedent there's hope. What's that, you wear eyeglasses and you worked within a mile of Wall St.? Step into the boxcar, we'll be with you shortly.
I won't hold my breath waiting for a true and equitable punishment for Goldman Sachs.
If it weren't for Zero Hedge, they wouldn't even be investigating them. Thanks for all that you do.
Won't go far. Society is happy to accept a level of rot and corruption as long as asset values are propped up and pain kept abay. The US has become a corrupt banana republic.
as is the case though, they are cracking down after the fact, I surmise a minor penalty (slap on the wrist) and some sort lower level interns losing their jobs.
Perhaps GS will give up some sort of trading desk as an olive branch but truthfully it will be one that will be of no use or consequense to them going forward.
Isn't it easier to be forgiven than to ask?
No more huddles, we'll call them "meetings".
Pay the fine, go your way, screw the peeps.
The thing that continues to haunt me is that even with a fine as big as anyone can imagine, the fine won't stop the system that supports their corruption.
working group on financial markets....even though they don't keep notes or records of any kind....
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions
Fine then 100 Billion dollars so we know for sure SEC and FINRA is serious to restore investor confidence.
Oh but they're a bank holding company now..."big ahhhhhh" and therefore they won't be fined more than a single day's trading suckouts from HFT, Sigma X, and Flash. They do provide liquidity you know. Maybe we should call it squiditity (TM)! TD, you may use squiditity from now on as you see fit...my TM donation to ZH.
Squidity(TM) is more marketable, no?
munt
regulatory crackdown on goldman begins ... is an aggressive statement.
What the hell does this money go for aside for covering up massive market malfeasance and catching an occasional Ponzi after decades of ignoring incriminatory materials? I assume this is a purely rhetorical question?
In my opinion the point of the SEC and FINRA is to appear as regulators without actually regulating anything of substance. The billion dollars goes to persecuting inconsequential transgressions committed by individuals whose main offense is their lack of ivy league degrees and/or being connected to firms such as GS.
I am highly skeptical that anything of substance actually occurs, other than GS and the regulators enjoying a nice dinner and stimulating conversation. The best that is going to happen is an disclosure that merely states these huddles occur. Problem solved, and all parties can go back to their status quo "ignorance is bliss" state.
delete... already posted previously...
One more tired recycle of the standard; "Don't believe what you see, believe what I am telling you".
"Don't pay any attention to the little man behind the curtain"......
The hits just keep on rolling.
I join with TD in questioning the utility of organizations like the SEC & FINRA who cannot act on anything unless it is the very public domain. What a bunch of O2 wasters!
Damn right, Layne. Why'd you have to die weighing 86 pounds at 6'4".
It is a Love Hate Love kinda deal dontcha know..
Fits with the Fight Club relationship cycle
Goldman Sachs will be fined a nominal amount without admitting nor denying any wrongdoing. The fine will be on the order of $10 million.
Lloyd Blankfein will walk on to the trading floor one morning and say, "Ladies and gentlemen, we're working for the SEC today from 0930 to 1009. Good trading."
Thanks Zh, keep revealing the facts......
This whole corruption scenario is like we are living in a third world country.
Unbelievable
Gotham City
More like Sin City.. The movie version
AP source: Obama to nominate Bernanke to 2nd term
http://news.yahoo.com/s/ap/20090825/ap_on_go_pr_wh/us_bernanke
FINRA and SEC are part of the problem, not the solution. First and foremost, this is a matter for criminal prosecution, not regulation. Don't let these Wall Street lackeys throw sand in your eyes.
From April 16, 2003 Frontline interview with Eliot Spitzer on the $1.4 billion stock-research settlement with 10 major Wall Street firms, including Goldman:
Frontline: "From the standpoint of the banks and the analysts, what do you think is the most serious deterrent to future misbehavior, abuse, corruption, and fraud, versus investing?"
Eliot Spizer: "The next time there will be absolutely no inhibition to bringing criminal cases."
With the WSJ disclosures on Goldman Sachs, looks like this is "the next time", right, Attorney General Cuomo?
http://www.pbs.org/wgbh/pages/frontline/shows/wallstreet/interviews/spit...
Enough is enough. It's time for criminal charges, not just civil settlements or fines. Fines are just a cost of doing business, and now, GS could be using taxpayer money to pay their fines. Only criminal charges on the top echelons of the Wall Street criminal enterprise have any hope of arresting the rape and pillage of investors and taxpayers.
It takes only one prosecutor (or Attorney General) to investigate just one crime, and follow the money and the connected crimes, and bring down the overlapping criminal enterprises using Racketeer Influenced and Corrupt Organizations Act (RICO) prosecutions. Once a tough prosecutor get serious, the white-collar softies will crumble like feta cheese. The guilty will trample over each other to be witnesses against the masterminds of the greatest financial crimes in U.S. history.
When a prosecutor takes off the kid gloves, and hits the criminals with the iron fist of justice, the prosecutor will become a national hero.
The cavalry is not coming, and the Fix is real, intact and totally in. Any prosecutor worth his or her salt will never get far enough to see daylight on any of this.
Fucking joke.
Going to need a Jefferson Smith to promote anything like this. A few of them.
Don't worry...GS will get theirs. To quote the prophet "Ezekiel" Jules:
"Blessed is he who, in the name of charity and good will, shepherds the weak through the valley of the darkness. For he is truly his brother's keeper and the finder of lost children. And I will strike down upon thee with great vengeance and furious anger those who attempt to poison and destroy my brothers. And you will know I am the LORD when I lay my vengeance upon you."
Monmick, you know CHE was a mass murdering POS don't you? Wake up or grow up.
That is debatable, but not in this forum...
Rest assured that I'm all grown up, and fully awake...
^ looks like my landscaper
Don't worry GS will get theirs....to quote the prophet "Ezekiel" Jules:
"Blessed is he who, in the name of charity and good will, shepherds the weak through the valley of the darkness. For he is truly his brother's keeper and the finder of lost children. And I will strike down upon thee with great vengeance and furious anger those who attempt to poison and destroy my brothers. And you will know I am the LORD when I lay my vengeance upon you."
Nonsense. This time the SEC and FINRA mean business. This time it's straight to bed, no dinner and next time we pull down your pants and spank you in public, Mr. GS Smartypants.
Better to expend our efforts coming up with the over and under on how many days this "investigation" - a total plant from start to finish - will last and until the meaningless punishment meted out, followed by self-congratulatory high fives all around Blankfein & Co. at a great disinformation job well-done.
Fucking joke.
ahahaha
That is the way to go TD. Those are all Prozac investigation,and the results are usually futile so long as there is no wide arrests and prison terms on a wide scale not unlike the Mafia prosecutions. Without such results,I think the public are better served by abolishing all those different regulatery agencies and saving their budgets to pay down a minor fraction of the budget deficit. This way the general public will know that there is no official goverment protection(as if there is one to begin with). And it will not be any different from Las Vegas, no sec or finra or any other alphabet combination. You fly to Las vegas with the general knowledge that most probably you are going to lose,and the goverment is not going to protect you.
Excellent.I remain patiently waiting for the mass arrests that will signal the beginning of real reform on wall street.One can only hope....
they will come for all of us long before going after them.
What's the phrase? Oh, yeah, "don't hold your breath."
Regulatory capture is the other phrase that perfectly captures what is the current situation. What's better than no cops? Cops that you own, to give that illusion of protection, so everyone else keeps playing along. Someone forget to put the "time to stop" part of the program in their cyborg heads though.
If this ends, and I have my doubts that it will anytime soon, the unseating of the oligarchs will require criminal prosecutions if we are to remain a civil society. However, I am also convinced we should look elsewherer than the S&P for signs of deterioration in their position. The dollar? Hmmmm........but all hail the invincible reserve currency.
Elizabeth Warren for Chief of the High Crimes Commission to root out the perfidy!
To me the SEC is utterly irrelevant. It is the federal fig leaf over the securities market. Bring back Joe Kennedy ... bring back free markets ... get rid of these people.' - James Grant
To me the SEC is utterly irrelevant. It is the federal fig leaf over the securities market. Bring back Joe Kennedy ... bring back free markets ... get rid of these people.' - James Grant
"whose only purpose is to serve as a springboard for cushy Wall Street General Counsel jobs."
so true so true. Incestuous at best.
I just hope it doesn't have the same fate as the CFTC "investigation" into precious metals price suppression scheme.
I don't think it will. The SEC has (deservedly) been publicly getting slammed constantly, and after the judiciary questioned the last settlement, I don't think they're going to settle future cases so easily. I don't think they are competent or useful, but I'm pretty sure they know that their self interests lie in trying (more convincingly) to pretend that they want to be tough on WS.
I still can't understand how those morons still have jobs, though.
Ya, right. SEC stands up to Judge Rakoff and says essentially that because a number of lawyers provided advice, the settlement on the BofA/Merrill is sufficient and adequate.
http://www.ft.com/cms/s/0/ad969bc8-90e6-11de-bc99-00144feabdc0.html
But in this case, they likely feel that they can't go back and admit they screwed up the first time around.
Next time, they won't want to be in their current predicament.
BTW, I love your posts.
___
BTW, is the captcha giving weird errors? (saying that the math question can't be longer than 2 characters but is currently 3 characters long? The Q was "-33 minus four equals"...
"Examiners at the Financial Regulatory Authority, the industry self-regulatory body known as Finra, and the Securities and Exchange Commission intend to ask Goldman for more information on these weekly get-togethers, people familiar with the matter said."
If I remember correctly, didn't Markopolos say FINRA was corrupt in his Congressional testimony on the Madoff scheme?
http://video.google.com/videoplay?docid=-2001237832838852193
http://video.google.com/videoplay?docid=7042347976248432607
Kind of asking your right hand to cut off the right hand.
No, it is just a distraction to mislead the general public. Nothing to see here.
The SEC and FINRA are totally useless. Let's face facts. Harry Markopolous gave them the smoking gun. Do you really think they are that incompetent? I don't.
The only way Goldman will be brought to justice, if they committed criminal activity, is if they are exposed by the media.
Court records are helpful in enabling that.
I have never seen more suckers gathered in one place.
If you think for a microsecond that this isn't already calculated and the outcome planned then please step up for a taxpayer funded bonus, you are the SUCKERS!!!
There is no way in hell that we will see anything but a slap on the hand... perhaps a $1M fine and they get off scott free and easy.
No prosecutions, no further investigations.
You heard it first here suckers.
Getting more and more interesting!
Their budget is really $1BB? Are you sure about that?
What a complete fucking waste of money.
I also got taken aback by that...where the hell does the money go?
Tyler, why don't you become an SEC officer or commissioner? The American taxpayers need people that know how to identify the crooks and find the evidence to go after them. They also need someone that knows where to tell the politicians to go when they try to interfere. The problem is that anyone good who works for these agencies eventually leaves because of the political B.S. and interference. If someone with ethics and intelligence ran the SEC and the pay structure was improved a bit, then maybe others would consider it. There is an opening for a regional director, but the pay sucks. http://jobsearch.usajobs.gov/search.aspx?q=&jbf574=SE00&vw=d&ss=0&sort=r...
BTW, even though I am not a Wall Street type or any kind of a banker, I read this blog regularly. It's been a red pill moment and my eyes are wide open now. You all have the best blog on the internet.
The SEC should start with this incident:
"Cramer makes room in the Sell Block today for a whole gang of misfits, based on analysis that Goldman Sachs released on Tuesday. Today's Sell Block detainees: life insurance companies like Lincoln, Hartford, Prudential, Principal. To put it simply, they're in "big trouble," according to Goldman's piece."
http://www.cnbc.com/id/27706066
Inquiring minds want to know if Goldman was buying while they crying about "big trouble" in these stocks?
or purchased CDS's, puts and short positions on their recommendations in mass quantities before posting the recommendations and before calling Kramer on the Kramer hotline.....
Tyler, why don't you become an SEC officer or commissioner? The American taxpayers need people that know how to identify the crooks and find the evidence to go after them. They also need someone that knows where to tell the politicians to go when they try to interfere. The problem is that anyone good who works for these agencies eventually leaves because of the political B.S. and interference. If someone with ethics and intelligence ran the SEC and the pay structure was improved a bit, then maybe others would consider it. There is an opening for a regional director, but the pay sucks. http://jobsearch.usajobs.gov/search.aspx?q=&jbf574=SE00&vw=d&ss=0&sort=r...
BTW, even though I am not a Wall Street type or any kind of a banker, I read this blog regularly. It's been a red pill moment and my eyes are wide open now. You all have the best blog on the internet!
The only thing the SEC and Finra will do at GS is leave their resumes and hope to get a job...revolving door!!!! The best fucking regulation money can buy!
give em hell harry
give em hell harry
thank god that the wall street journal, or rather an independent newspaper thats hires REAL JOURNALISTS, exists.
that paper and the new york times are the only media venues with a shred of reporting going on.
This is all for show. Just like the recent "concern" about the torture at Gitmo. Our government pretending to do something.
That sounds really nice. Nothing will come of it, but it sounds really nice.
It is really sad that our nations president is told what to do by a bunch of old white bankers. I thought Obama had a spine. Perhaps people should mail Obama $0.25 and tell him to buy a spine.
For those with some guts:
President Obama
The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500
Nobody likes GS or the Fed. It's the new normal.
A few years back such outrage over either institution would have been rarely found across the web. Some obscure websites made a point of high lighting the fact that the Fed is indeed a private bank.
However, in our 'at the mouth foaming' rage we should consider a totally different force at play here.
Totalitarism always needed the bankers and private capital until.. well until they didn't need them anymore or they were too difficult to control within the new set of 'regulations'.
Just pointing out a small chance that we are also being played as the famous 'useful idiots' by the force that seeks to ram through a nationalization of health care as the key to more government control.
Is the timing of this a coincidence? Our leader is on vacation and does not want to be disturbed. He even told the press to basically leave him alone for a few days. In the meantime, his minions and legions are working against the CIA, the Fed and a famous private bank.
Remember the unions chartered busses and drove their members to the houses of banking execs for intimidation. This happened only a few month ago.
Banks are seemingly the winner in our new political reality. But make no mistake, the unions are favored also. Can both continue to be the beneficiaries of federal policies or will it go the way of a 'night of the long knives' where bankers are thrown under the bus if they're lucky or thrown into a gulag if they're not so lucky?
Consider the options. Corruption is neither new nor will it go away. It will be succeeded by a different breed.
This is a very good point. We need to be aware of possible ulterior motives here. If the Fed were to fail we need to ensure more power is not given to the IMF as a supposed 'solution' to any sort of crisis.
The U.S. must take back control of it's own sovereignty.
I think bank nationalization will happen eventually. It was tested in March but the public response was ultimately negative and the stage wasn't set yet. However, with further deteriorating financial and banking system where the FDIC can mandate the closure of banks it is already happening.
It was said that last years market collapse was preceded by a massive 500 billion dollar electronic withdrawal in a mere hours on September 17th. That's what set the ensuing collapse in motion and it would be interesting to find out who did it and why. The timing was obviously in favor of an almost messianic 'hope & change' Obama campaign. If I remember correctly he was even pretty cool throughout the time, saying 'call me if you need me' when summoned to the Bush WH. Obama acted as if he knew what was happening and that it would benefit him. If that wasn't enough to ensure a WH victory in November, the nearly 200 billion in campaign funds surely would. McCain conceded in October. Just my observation.
The markets will tumble again as the economy deteriorates and the slump gets deeper. First indicators are a massively declining BDI index and less than expected manufacturing activity in Europe and Asia.
Care to guess who crashed the markets last year? George Soros is a candidate as he had direct financial involvement with the BO campaign and his legacy of nearly bankrupting the BoE puts him into that mould. Who else?
It was Karl Denninger who reported that on the 17th of Sept 2008--while paulson and bernake were crying trouble, there was a massive drain of liquidity by the Fed. I think he said that he reported it to congress, but no one seemed to care or investigate.
http://www.youtube.com/watch?v=Sxz6gYIiFHc
And I thought the upcoming global currency wars would be the driving force for going global. Would be interesting if somehow the Fed was rendered 'impotent' and a Depression followed it - leading panicked calls for the 'independent global institution.'
The IMF is broke. By the end of this mess (10-15yrs from now), I'm willing to be that neither the Fed nor the IMF are in existence.
Glad I passed when I 'considered the options' on the unionized airlines. I wanted to buy puts again on the ticking BK bombs after oil bottomed out earlier this year, but the massive unionization of the companies led me to believe that the O Administration would save them at all costs (that, and the puts were just too inflated). I still don't know if they'll get bailout-type money, or if they'll go the route of GM-style gov't takeover - with eventually worthless stock equity.
Dislike has nothing to do with it.
I'm just green with envy, insanely jealous and flummoxed by frustration that I couldn't foresee how much power Goldman Sucks has over the global financial system and profited mightily by it.
It is sadly, obvious, nothing of consequence will happen.
There's a good article on FOFOA for anyone interested in questions related to Gold, USD, IMF, BIS, etc.
"The BIS, on the other hand, coordinates central bank transfers to facilitate international trade balance. If the BIS stopped functioning, so would international trade. This clearing system is fractal in that imbalances are first cleared locally, then regionally, then nationally, then internationally. If the BIS didn't deliver, food would not arrive at your local store, at least until a local production, distribution and clearing system was set up."
http://fofoa.blogspot.com/2009/08/confiscation-anatomy-different-view.html
One thing this announcement is good for is to set the stage, and quite possibly, perpetuate-- the well earned negative beliefs we have about finanical regulatory institutions and the firms that are abusing the system. One objective, perhaps, is to spread these beliefs as far and wide as possible.
Due to the efforts of Zero Hedge, and other sites within the blogosphere-- the reputations of Goldman Sachs, the SEC, and FINRA-- are taking major hits.
For the latter entities, their ineffectiveness will further call into question why either exists in the first place-- and that call will get louder and louder as they are increasingly put up to task. Sooner or later, Congress will need to respond to that lack of effectiveness.
As for Goldman, there is already little doubt they are losing clients-- as even those who are not well informed are getting the message that perhaps Goldman cares most about Goldman, and not the client. Otherwise, why operate a prop trading desk that makes a positive return on HFT, day after day...
This is just one salvo in the battle of a war. I dare the SEC and FINRA to underdeliver this time around.
Major hits where? Why are you so conviced the SEC and FINRA are under one iota of pressure? What are you, me, any of us going to do if they sit on their hands and do nothing?
Fair questions...
Because during my life as a Fed, I still know people at both SEC and FINRA. To say that the directors there are "under the gun" is an understatement. Do you think I get this crap out of thin air??? They are more under the microscope than they've ever been... and they know they've placed themselves in that position.
The reason you are seeing Congressmen sending letters and asking for more information on current practice comes from somewhere. People who are NOT sitting on their hands (like Tyler) are getting in touch with Congressional staffs and providing the ammo for Mary Shapiro and company to act. If they don't act or fail to act wholeheartedly, active Congressmen will get the feedback. My bet is that more Congressmen will get involved, too, as a way of preserving their own jobs.
Eventually, you... me... and the rest of us will take to peaceful protest if nothing at all is done. If that doesn't work, the protests will not be peaceful. Whether you know it (or will participate in it) we are moving in that direction.
Financial game is a zero sum gain. For Goldman Sachs to be successful, its client must suffer. The golden rules dealing with Goldman sachs are sucked as follows:
1. Never listen. Hear no evil from Goldman sachs. All its research report is designed to mislead for Goldman's benefit, not yours. So, observe what goldman is doing, not what goldman is saying.
2. Never follow. Do exact the opposite of Goldman said.
3. Don't be a client of Goldman. Otherwise, it might sachs.
A slave is someone who waits for someone to come free him. If we keep waiting on "someone" - (SEC, FINRA, Congress) - to free us from these gangsters, then it'll never happen. We take Goldman down just like this - one blog at a time, one person at a time, one paper cut at a time.
One day, these thousands of paper cuts will coalesce into a single, decisive collapse.
I WILL NOT SUBMIT.
Is it just me, or did I notice that not only are they charging tax payers more to run the SEC, but the amount of FTE (Full time Employees) has deminished as well.
And the avg salary was being increased as well?
WHAT THE HELL WAS GOING ON AT THE SEC!!!
This is a smokescreen to divert from HFT, flash orders, dark pools. Who gives a shit about GS's stupid agency ideas? No one. Do they make money? No, they don't. Either does their conviction buy list. Either does Abbey Joseph Cohen's idiotic predictions. It is revealing that regulators have glommed onto this trivial sideshow. Its the HFT that is fucking everybody who buys or sells a stock. It is grand larceney and the shithead regulators have been given approval to investigate these stupid meetings. Keep your eye on the ball folks. GS would love this to be the issue.
Yup. This is likely a psychological ploy. Where you pretend to let yourself get chastised and continue doing whatever the hell you want. Meant to be a spirit breaker.
Law enforcement is a force. It has muscles and power. It tries to balance doing some good to gain legitimization of those muscles and just flat out bullying and pushing people around.
Law enforcement should be very careful because they can create a massive force of population that just adopts a complete all out war mentality.
You'll see alot of this type of reporting. It's really nothing more than a guaging of the sympathetic responses of people. It'll get backed down just like the swiss bank account stuff. It'll be all fun and games for a while.
1.) Somebody leak some cookbooks from Goldman
2.) Get said books into William Black's hands
3.) Stage some mock executions with GS executives
4.) Show the world that we know how to deal with our criminals
It's very funny,this investigation is good for GS, they will pay like 1-2 mil $ crowd will get so called justice and MSM will blab how even big are not bigger then law!
So minimum cost and there will be no more media or blogosphere hunting. It's like robbing Fort Knox and came to be accused for stealing chewing gum.
Honestly I like this blog but if you read ZH and make your own conclusion based on ZH posts, ur in serious truble.
Every day I read ZH, it's seems to me that ZH is an subsidiary of PIMCO.
Newertheless,I will keep reading ZH, it's a quality blog with lots to learn!
P.S. CNBC is marketing and entertaining media but guys from Bloomberg are true spin doctors (for sophisticated readers).
Anyone else disappointed with this? HFT, exemptions from bank holding company restrictions, massive profits while the economy flounders, SLP exclusivity - and the regulators are worried about whether they give their biggest clients some tips?
Whoopdie Do! They'll fine them a few million after they've ripped off the taxpayers for billions. They should break them f'g up like any other too big to fail company.
Think again. Lloyd Blankfein has just executed a major coup to become even more powerful.
http://www.nytimes.com/2009/08/24/health/policy/24circumcision.html?_r=3&hp
TD,
It may be worth it to do an investigation in how the FASB was stron armed into altering mark to market rules. This seems a critical piece to the puzzle with regards to balance sheet fraud and the corruption story in general.
DING, DING, DING, DING
That was the biggest crime of them all.
If you have money in any bank stocks and they implode but have recently showed large (fake) profit.........SUE FASB for every penny of it
There is a clear difference between the needed conservative nature of banking....and the need for entrepreneurship in stocks....
Exchanges and the bid/ask spread....the ability for an individual to post between the bid/ask directly....the technology has come a long way....
However the loss of the old time market maker spreads has been replaced by electronic buy/sell programs ....that are not operating as a true "public" venue that is first come first served....
The technology.....as has been proven by BATS....is here today such that there should be no private means to transact public securities....
Once public....the securities must go through price discovery first come first served by time stamp....There is thus no reason to have market fragmentation....
This is the simple solution....and in fact is what is needed for the regulators....ie front running prior to public releases from various firms etc....
Furthermore ....the foreign markets should get on the same trading highway....as this is essential for globalization....
True universal accounts ....in the language/currency of choice would enable anyone to diversify their wealth in accordance with global risks....This would be the next step....
Also...there should be a current fact/news venue for all public securities in a wiki format....in the language of choice....
What is interesting....is that the electronic exchange could be domiciled in any country....and perhaps should be a guarded worldwide asset....that enables efficient entrepreneurship all over the world....
And so they all lived happily ever after.
The End.
Thought you could give us the old "I saved the World" monolugue and then just scarper? Ha, another 4 years before the mast for you, Ben the bald. "And in 2 years time we'll review your little speech.
Regards