SEC charges GS with fraud

Goldman is doomed in its current form. They won't be allowed to securitize an SBA loan after this.

 

It deserves to lose alot more than $13 BILLION!!!!

With all the manipulation on wallstreet I think its fair to price all bank stocks at or lower than March 2009 levels.

 

We're not THAT much different from the guys on wall st.

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This doesn't change the fact that Goldman has always been a money making...well more like money printing machine. This is a loss of 12% to market share, not revenue. Unless the SEC shuts them down for good, GS will be back up and running full steam ahead in no time.

 

The cost is just in the stock value. If the allegations are true (GS denies it), the cost to the company if it survives (I think there is a real argument that at the very least it should be broken up), will probably be in the tens of billions in loss of revenue.

 

Story ran in December. Gloating.

http://www.nytimes.com/2009/12/24/business/24trading.html?pagewanted=all

 

Speed dial conference call from GS to Hank and Timmy:
WTF, I thought we had this covered? Do we need to unlock the "secret files"? Get your act together boys or we go down together.

 

I'm referring to the cost to CDO investors. According to CNBC it was $1b

 

Its either the end of the world as we know it or a time to be quietly buying some stuff............
JMO

 

Wow is that so? So who the fuck is lying the SEC or GS.




The company issued a terse response to the complaint, saying the charges are "completely unfounded in law and fact" and vowing to "vigorously defend the firm and its reputation."


Here is some of the email Im sure all of you read.


Fabrice Tourre, age 31, is a registered representative with GS&Co. Tourre was the GS&Co employee principally responsible for the structuring and marketing of ABACUS 2007-AC1.

For example, portions of an email in French and English sent by Tourre to a friend on January 23, 2007 stated, in English translation where applicable: “More and more leverage in the system, The whole building is about to collapse anytime now…Only potential survivor, the fabulous Fab[rice Tourre]…standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstruosities!!!” Similarly, an email on February 11, 2007 to Tourre from the head of the GS&Co structured product correlation trading desk stated in part, “the cdo biz is dead we don’t have a lot of time left.”

 

haha frenchman came to take revenge on AMerika.