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Fed Action Against 'Serial Offender' Goldman Stumbles Market
Rather interestingly to many of us, the 'pattern of misconduct and negligence' by Goldman Sachs' residential mortgage loan servicing sub Litton, has actually been pressed by The Fed. It seems in the short-term, this was the straw to break the ebullient camel's back of the equity market as XLF drops 2% on the day and GS was down around 3% before bouncing back a little.
Fed Press Release: For immediate release
The Federal Reserve Board on Thursday announced a formal enforcement action against the Goldman Sachs Group, Inc. and Goldman Sachs Bank USA to address a pattern of misconduct and negligence relating to deficient practices in residential mortgage loan servicing and foreclosure processing involving its former subsidiary, Litton Loan Servicing LP.
Goldman Sachs sold Litton to Ocwen Financial Corporation on September 1, 2011 and has ceased to conduct residential mortgage servicing. Litton is the 23rd largest mortgage servicer in the United States.
The action orders Goldman Sachs to retain an independent consultant to review foreclosure proceedings initiated by Litton that were pending at any time in 2009 or 2010. The review is intended to provide remediation to borrowers who suffered financial injury as a result of wrongful foreclosures or other deficiencies identified in a review of the foreclosure process. The foreclosure review will be conducted consistent with the reviews currently underway at the 14 large mortgage servicers that consented to enforcement actions brought by the banking agencies on April 13, 2011.
If Goldman Sachs re-enters the mortgage servicing business while the action is in effect, it will be required to implement enhanced corporate governance, risk-management, compliance, borrower communication, servicing and foreclosure practices comparable to what the 14 mortgage servicers are implementing.
As noted in the April press release, the Federal Reserve believes monetary sanctions are appropriate and plans to announce monetary penalties.
These monetary penalties against Goldman Sachs will be in addition to the corrective actions that Goldman Sachs will be taking pursuant to today's action. Goldman Sachs has acknowledged in today's action that it will be responsible for satisfying any civil money penalty that the Board of Governors could have assessed against Litton for its conduct.
We suspect the monetary penalties will not be overly onerous initially but along with downgrades of its stock today, it seems confidence in our TBTFs (and the premium they appeared to receive from their federal sponsors) is ebbing rapidly in both equity and credit markets.
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didnt lloyd just hire himself an attorney? amazing how quickly a little qe rumor can make everyone forget.
.
Fear Not Bitchez, Sacks Runs The USG ...
The old squid really does not change its stripes... sold to Ocwen Financial Corporation... really !!!
Ocwen is NewCo spelled backwards... translation FU in squid talk...!
Half Life of this event on Goldman's stock, about a half hour. Afternoon 3pm green rocket in 3, 2, 1 .........
Could Bernank withhold QE3 on Sept20-21 to purposely hurt the markets until he "has no choice"?
Flip a coin¿
He might even "leak" it before Sep21st! All of a sudden markets tank aond no one "knows" why until the "leak" gets leaked :)))!
He might just withhold it on economic grounds alone, my conspiratorial friend
He needs the markets to go down, so he's gonna use GS to bring things down enough and in turn GS, who knows exacly what he's up to, can short its stock till the effect is achieved (i.e. excuse for QE3) at which point GS will go long. Simple.
Interesting that they didn't follow the mo and instead timed the release just when most whales would be sitting back down at their desks after lunch break. Do they want to take the market back down again ?
OT: Greece in headlines. Again.
After these gems we shud get a green close.
I am so LMAO this is OLD NEWS because see...GS....Lord BlankSchwein...are going to get away anyways....expensive attorneys, legal loopholes etc! They need to give somehting to the sheeple! HFT is in full force, only a huge selloff will usher in QEsomething until then it's happy "trading"!
Fuch Goldman Sachs.
Is that German for "Fuck?"
No, this is German for fuck "fick"!:))) dunno the jewish versions though :)))
looks like it's time for the squid to put one of their own in the White House...I'm not talkin about a "staff position" or a mere proxy (Obama)...I'm takin a full blown "Lloyd for President" campaign.
Could he come by my town first? The town hanging, eh err, I mean the town hall is all set up for him.
I think we'll need to have a raffle drawing to determine the winner of that particular "privilege".
It's only fair:-)
I bet we could raise enough from that raffle to pay off the debt!
Jump, Lloyd!
Is this a "new" Ben Bernanke??? Someone who will use both a carrot and a stick to control inflation and rejuvenate employment???
...... Nahh, he won't get me convinced if the fine is anything less than $ 500 billion USD
barliman
500B sacs & bags of peanuts? Peanut butter will be cheap, then!
I saw this headline at work today...still scratching my head.
At what point in time did the Federal Reserve (a private banking entity) derive enforcement powers?
This is not a GS question...everyone knows they're goons...this is a law question.
Did Dodd-Frankenstein convey still more power to the Federal Reserve than we know? Do they have like their own black garbed ninja SWAT Team now or what?
This is a serious question here...they are not government...they are not part of the Executive, Legislative or Judicial Branches.
Seriously...WTF?!?!
Actually, they do have their own SWAT/Commando/Ninja team.
Yes, Dodd-Frank did give the FED broad new powers including enforcement powers
Who knows, maybe he got a call from someone to start breaking the balls of the SCoaMF's ...
http://www.i-am-bored.com/bored_link.cfm?link_id=63371
barliman
Well thats just perfect.
I can hardly wait till every private corporation has their own little enforcement/militia wing. I can see the jarring news headlines now...
"Yesterday, a raid was conducted on Johns Plumbing by armed agents of Freds Bath & Stuff"
Can't we just fast forward to the anarchy part of this play?
Another sign the glory days of shitty Goldman are over.
If only it were true. Goldman plants are everywhere. I thought I saw one looking up from the sewer trying to find a reason to foreclose on my slave castle.
Where was your mother-in-law at the time?
Was all of the BoC gold gone when Goldman's boy took over ? Or did he make a great deal for his masters ?
Almost sure it was gone before Carney's time. Although no big deal, we can just mine it out... Or maybe hire Sprott to source some gold for us from his superior sourcing capabilities (i.e. his ETFs). Either, really.
Poor market which are otherwise ebulient and perfectly healthy were 'stumbled'...aw thats a shame.
The head vampire comes down on one the senior vampires? Hmmm... The drama just got more interesting. Although I suspect it is just more kabuki action. Fed trying to paint itself in the positive as part of the misdirection in throwing politicians and people under the bus. Meanwhile GS is happy to play along (for a fee).
Wait, they are requesting that GS hire an independent consultant to oversee the foreclosures including the illegal ones? I wonder how motivated that independent consultant will be to point out the mistakes that were made (illegal foreclosures) so GS can pay fines? I am sure GS will pick someone that is unbiased. A future or past employee perhaps? This is the FED protecting GS, but in the news it looks like they are penalizing them.
Meanwhile those people that got foreclosed on illegally are probably living on their last dollars and won't see a dime of compensation for another 3-5 yrs if at all.
Sounds about right! There will be some token fines to make it look legit. Other than that it is just more circus for the masses.
that could be.....
a) a current Goldman employee who quits to start a new government job
b) a former Goldman employee who changed is name
c) a former or current Bof A Board Member
d) George Soros
I believe what you were trying to say was, "although i suspect it is just more bukake action."
News flash: Serial mass murderer indicted for spitting on the sidewalk.
I would really like to see the prospectus for the Litton sale that they were trying to unload before this...just like the used car salesman..."it was only driven to church on Sundays" line...all is good...just hurry up and buy it.....
They'll get their hands slapped and pay back (in fines) a small percentage of what they stole.
Gotta love the US justice system...
What we have here , is our system of capital punishment on display. If you have enough capital, there is no punishment.
...with neither an admission nor denial of guilt.
Wait a second, the rich are starting to eat each other? Since it is too late to tax them, I thought we were fattening them up to eat them later. Someone separate those goldman executives so they don't damage the meat.
Just a little fried squid for lunch.
Now who's been a naughty boy..hmmmmm
GS has been trading funny for 3 days. A big shoe is yet to drop.
The Goldmanites should be shut down forever and hung by their Sachs.
So what if GS has to sheet a gold brick as penalty? It's chump change to be delivered as worthless fiat after extensive litigation.
Who does the Fed expect to feed with this BS?
Me thinks someone at the Fed wants a job at GS......
You have that bass ackwards. GS bigwigs get jobs at the Fed. Going back to GS is like a Major Leaguer going back to the Minors.
Monetary sanctions are not good enough. We need to see handcuffs, perp walks, trials, and jail time.
screw sanctions, handcuffs, trial, jail time and do the world a favor; drag em to the fucking gallows or draw and quarter
Don't be silly. This is a show trial for the masses. A lot of press conferences, 50 MM fine, move along, nothing else to see here.
What business has the privately-owned Non-Federal Non-Reserve becoming a regulator ?
Thats the best question of all....who died and made some shadow bankers the new sheriff in town? This is all plain bullshit and stinks!
So is CONgress going to stop Clemens from getting into the Hall of Fame now? I mean, they have no jurisdiction, so why not?
This shit has now officially gone plaid!
pods
We have the FED regulating financial institutions and congress regulating baseball. They can't get anything done, but they made sure they got to the bottom of the steroid scandal in baseball.
Our owners are upset that GS' continued explotation could undermine their control.
They were obviously told to keep a low profile for a while.
Bail out GS with 100s of billions of dollars, and then fine them a couple million(chump change)
It is a mockery of justice.
Despite the fact that nearly everyone is betting QE3, I'm saying it won't happen. We get big fiscal packages instead. And the Fed will maintain ZIRP and Qe lite which they're already doing, plus some MBS re-shuffling when the mortgage refi package goes through.
Its all just musical chairs until the nukes start flying and the false flags and riots start up in the late fall.
lol. I needed that
maybe we will all play musical chairs in FEMA camps?
Fiscal stim. Only targets the little people. Where's the sugar for the banks?
The next plan will be to "help out homeowners" with some token principal writedowns. It will do nothing to stop the values from falling but it will provide another year of payments for the banks due to people thinking that things are okay now, and more importantly, it will quietly call a Mulligan on all those shoddy MERS loans and start over with a nice, fresh, enforceable- in- foreclosure note.
This is what they are after, just need a big enough carrot for the sheep to jump on it and step quietly into the noose.
pods
Calling all criminal lawyers!
Banksters, like Blanfein, may need criminal representation. Call your local bankster now before they're worthless.
Dudley playing inside baseball at the firm he plans to return to? Just guessing.
Say, aren't we about due for S&Ps upgrade to AAA with a totally optimistic outlook? Funny how much toxic effluent has flowed under the bridge.
Goldman is a cereal offender - Cheerio Abuse
This marks the end of the Bear Market bounce. This was released by the Fed and the WH in order to drum up support for Obama's "job's speech" next week and Fed intervention in a few weeks. Expect the market to tank more tomorrow after the job's report and even more next week.
g.s MUST GO; fed sanctions make us laugh. g.s. MUST GO
http://www.entendance.com/forums/viewtopic.php?f=5&t=762&p=19083#p19083
'FED sanctions'...who made a bunch of bankers law enforcement officials?
who made a bunch of law enforcement officials into bankster bitchez?
'FED sanctions'...who made a bunch of bankers law enforcement officials?
Exactly.
I smell desperation.
"Old Unit" means "Old PR Problem" = the rear view mirror financially speaking (legal provisioning already calculated Hi/lo). Rogue problems washed clean away with the cleansing winds of time, re-orgs, and divestitures of "streamlined" (ed.note. "Caught") business units of yester-years who's units all contributed to the glorious "surprise" all-time record for quarterly profit.
The process of incorporation, and the "winding down" paperwork is an art form that should be taught at every business school for it is a growth industry in itself. Only now can they start the process of negotiating away the mortgage fraud settlement.
"Old Unit" means "Old PR Problem" = the rear view mirror financially speaking (legal provisioning already calculated Hi/lo). Rogue problems washed clean away with the cleansing winds of time, re-orgs, and divestitures of "streamlined" (ed.note. "Caught") business units of yester-years who's units all contributed to the glorious "surprise" all-time record for quarterly profit.
The process of incorporation, and the "winding down" paperwork is an art form that should be taught at every business school for it is a growth industry in itself. Only now can they start the process of negotiating away the mortgage fraud settlement.
What? What is this? The Fed targeting one of its own?
The significance of this story is not the meager fine to come, or large fine, as the case may be. It is the public acknowledgement of fraud [continuing]. As the precedent is established, the net widens. Confidence in TBTF...fails. The banking sector continues to fall, dragging down equities of a non fraudulent nature. Discontent with the fraud ridden parts of the system grows. Folks ask questions....remove their money from banks. Etc TBTF entities commence cannibalization, finger pointing, blame games.
Now...if Mary Schapiro of the SEC could just close her meeting room where TBTF representatives have been sitting for two years, trying to talk her into forgetting all SEC rules so that they can continue with their crime wave...then we would have something.
This...or wrist slap and on with Marxism. Can't say as I'm sure, but the story does NOT hurt the cause of market justice.
Why is THIS suddenly taken as bad news in the first place? Doesnt it just make hope for more intervention all that more euphoric? Id think markets should rise based on reinforced optimism for QE for Giant Squid who as we all know runs the world.
I think there's a bit more to it. Wilting QE3 hopes.
Quote stuffing...MASSIVE quote stuffing @ 3:20. To very little effect. Someone is trying to juice the algo boys, however. Zero volume bid baiting. Bodes well for a weak close, a sell everything moment.
Everyone QUICK run to the other side of the boat!!
market is wrong...
oooohhh rally fizzle, maybe 3:30???
Guess we haven't left behind August's triple digit swings after all. Dow down over 200 points from the morning high.
Maybe the S&P will go below 1200 again, of course that would be Algo Uber Bullish and probably rocket it back up to 1225.
when someone goes to jail for something then maybe I'll buy into it, until then the fed is Just PR. how aabout taking away access to discount window, or some real penalty
i'm not settling for some rogue trader bitchez. i have a list of big names i want shot at sunrise.
When are we all going to raid the winter palace?
I've been wondering the same thing for awhile now
Notice they start at 2009?
How about ANY from 2000 on?
Already a limited exposure.
I bet Timmy had a say in that one.
SP 1220 it is then.. stops the "rally" in its tracks. Fido prepares to rollover. This is quite bearish techinically speaking to end this quickly in Less than 4 weeks.
they need to short their buddies so they can buy more gold to hire few dickheads to dig a deep hole for them in a short while, ben will be transporting them during regular helicopter hours. their future :selling their shitten panties after few thousand point drops in infinity sigma events www.used-dirty-panties.com
GS is in the mortgage business? Bring back the Glass-Stegall Act.
Why not(at least) separate investment bank scams from regular banks scams?
The voice of sanity, reason, intelligence and wisdom.
Crying into the empty, hollow, galactic wilderness.
TPTB is trying their hardest to turn the tape around to minimize the damage.
Labor Day weekend is always full of hope.
Don't want to ruin a weekend at The Hamptons.
Now when you say TPTB do you mean The Powers That Be or
Trailer Park Trash Babes?
:)
pods
I'm not heavy into Ew.. but it's Clear an ABC corrective move that is now ending. Wave 2 Decline ahead. This should lead to SP@ 1000 into Nov. A pretty nice decline with financials and GS leading the way.
Big Institutional money is getting out of GS nice and steady as to not cause a stampede but.. looks like they are done.
the fed will just fine GS then offer them a back-door bailout
nothing to see here
tyler, please get your tweeter back on the horn. havent gotten much today from you via twitter
I'd also like to speak to you about your package.
What about the FED and the Justice department goes after them for that : That's way more criminal....
http://thinkprogress.org/politics/2011/08/18/298485/exclusive-goldman-sa...
Exclusive: Goldman Sachs VP Changed His Name, Now Advances Goldman Lobbying Interests As Top Staffer To Darrell IssaThinkProgress has found that a Goldman Sachs vice president changed his name, then later went to work for Issa to coordinate his effort to thwart regulations that affect Goldman Sachs’ bottom line.
If the US government was anything other than a puppet bought with fiat Benny bucks we would be seeing massive criminal indictments for fraud and racketerring. Alas, if you refer to yourself as a bank instead of as "the Mob" or "the Mafia" even if you are guilty of the same crimes then you are immune.
I still hold by my original statements 3 years ago. When the shit hits the fan, the US military, which has to this point been coddled rto gain their support, will have to take a stand and decide if morally they are with the people of this country or with the criminal element that runs it.
Fed to GS: Buy more USTs or we find more reasons to sanction/fine you. In the mean-time, we will take the change in your pocket as a penalty. OH, and don't foget to bid pennies on the dollar for the mortgages you sold to us at 100 cents on the dollar.
Hi My name is Indi Penda from BSAS, Balance Shit Audit Service i am here to audit little Litton shit.
Oh, hi How much for your service today Indi?
Price is up a little my friend, inflation you know...haha
You little bastard here is your money have the audit ready by next week, we need it some time before before 2020.
Oh baloney.
They knew it was coming shorted their own shares and have made billions.
You cannot be serious to think that GS isn't pulling all the strings and camouflouging it with these petty cash nuisance penalties???
I'm amazed that Goldman Sucks and Lord Blankfein can still manipulate you, too.
You're far too aware to be taken in by this latest charade.
I sort of smell something a couple of months back. Back when GS say oil will go past 120, and Obama issue the release of strategic oil reserve. Along with raising of margin requirements. G.S. has shown signs of resilience towrad the administrations.
Here we go, quarrel in the bed surfaced.
deleted.
A Ws 'bank' cannot survive a criminal 'probe' and conviction which is where this is headed.
is this to keep a potential competitor out of the market if/when the firesale of assets happens due to pending settlements in current/future litigation, such as with BAC and others???
seems to me to benefit JPMorg. substantially. funny how close theya are to the FED...
I'm sure the fed, made up of a large portion of former GS employees, and Obama, whose cabinet is formed with a large number of former GS employees, would rather do the punishing then let GS face a criminal prosecution. It may end up costing GS some cash, but Bernanke can always print them some more.
Aw, shucks, The Fed is just pissed off because it knows GS et al pillaged the homes that the Maiden Lane bonds held title to. They watered at the trough 3 times, and I guess that's 1 time too many. Bogus docs & bogus signers & bogus notaries finally got the Fed's attention only after they got screwed out of the collateral it thought was backing those toxic bonds. Eric Schneiderman should be all over this, and Pam Bondi should be nervous since she impeded this investigation by firing the 2 top ass't AG's in Florida.
Fed funds QE3 with Goldman fines. See, there’s another wild-ass option Goldman's economists forgot to include in their recent post Jackson Hole analysis.
GS should have been mandated to hire Harry M. Markopolos.
GS would shit eggrolls.
Batman vows to punish Bruce Wayne for his shady business practices!
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