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Goldman Sachs Accused Of Fooling Clients In Scathing Senate Report

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http://www.guardian.co.uk/business/2011/apr/14/goldman-sachs-accused-of-fooling-clients

In a frenzy to protect its interests at the start of the credit crisis, Goldman Sachs sold mortgage-linked derivatives to clients at inflated prices and misrepresented the nature of the deals, according to documents released by a Senate subcommittee.

Carl Levin, the Michigan Democrat who heads the Senate permanent subcommittee on investigations, said Goldman had "exploited" clients and top executives had lied to congress during testimony in 2010.

"They gained at the expense of their clients and they used abusive practices to do it," said Levin, adding there was still time for regulatory agencies to take action against Wall Street.

The company said it disagreed with many of the conclusions, but it took seriously the issues explored by the subcommittee.

The bipartisan committee issued a report on Wednesday on Wall Street's role in the 2007-2009 financial crisis, and used Goldman Sachs as one of its case studies.

As the market for related credit derivatives ground to a halt in 2007, Goldman management became increasingly concerned about the company's exposure.

Top executives held a meeting on 11 May 2007 to develop a "gameplan" to value those assets. A few days later, Dan Sparks, who headed Goldman's mortgage division, estimated the company might have to take a $382m (£233m) writedown on its portfolio.

"I think we should take the writedown, but market [the CDO securities] at much higher levels," Sparks told Thomas Montag, then the head of sales and trading, in an email message, according to the report.

Another executive, Harvey Schwartz, expressed concern about that tactic, saying, "don't think we can trade this with our clients andf [sic] then mark them down dramatically the next day."

More at the link.

I appear to have missed this bit in the bible where Jesus sold prayers at inflated values and misrepresented the nature of God.

Still perhaps the giant squid has a different bible to everyone else.

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Guest sillybear2

Oh dear, it looks like they might have to throw a couple of nickels at the juke box congress and pretend to be sorry all over again. <_<

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Oh dear, it looks like they might have to throw a couple of nickels at the juke box congress and pretend to be sorry all over again. <_<

What a charade and fast becoming a boring spectacle. Only Blankfein's sorry ass sitting in jail would be enough for me. Second thoughts somebody sitting on his sorry ass would be better, preferably with a 12 inch todger.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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