NOW, it is time to get to the so-called rating "agencies", that are not (government) "agencies" at all, but private companies, S&P, Moodys, etc., and which, as only briefly noted in this article, contributed so much to our financial crisis! The private rating COMPANIES charge the publicly listed companies that they rate for the rating of their bonds, stock, etc.-- hardly objective, and even the corrupt appearance of such is process is CORRUPT. The rating agencies should be taken over by a single government agency, maybe the SEC or Treasury, and charged a substantial penalty for what they did to produce the Great Recession, before they are bought out by government at a substantial discount to their owners.
3
Maybe it will take a real depression to get anything changed.
2
I'd be willing to bet that all the Republicans and that DINO entitled leader of the Democratic primaries, Hillary Clinton, would approve this deal.
Bernie and/or Elizabeth Warren? Not so much... maybe not at all.
Bernie and/or Elizabeth Warren? Not so much... maybe not at all.
4
Perhaps the NYT should complete the telling of this story, which is that the Big Banks pumped full of funds by the Federal Reserve funded hedge funds & private equity groups to buy up at firesale prices the foreclosed upon houses. This was done under a program run by Julian Castro as Secty of Housing with the proviso that the buyers "assist" struggling homeowners to remain in their homes so just like the Wall Street Big Bank Rescue was Obama approved, this redistribution of wealth is also Obama approved.
Guess no one will be very surprised at the actual lack of "help" provided to struggling homeowners by the buyers of the mortgages. Nor should anyone be surprised that Secty Castro has never taken any steps to enforce the promises made by the buyers of the mortgages to get the HUGE discounts because Obama wants to support the Free Market when it suits Big Business & the Fig Leaf was this would provide Free Market Help to struggling homeowners
Needless to say, Julian Castro is being touted as a potential running mate for Hillary. Both can now boast of their credentials in getting the job done, at least when it comes to transferring wealth from the 99% to the 1%
Perhaps Bernie should stop being so reluctant to answer honestly when asked if Wall Street contributions to Obama had any effect on Obama. Clearly it did & it had one of the highest rates of return imaginable but Obama got elected twice;Wall Street got Geithner, Bernanke & control of the SEC & lower level appointments
Guess no one will be very surprised at the actual lack of "help" provided to struggling homeowners by the buyers of the mortgages. Nor should anyone be surprised that Secty Castro has never taken any steps to enforce the promises made by the buyers of the mortgages to get the HUGE discounts because Obama wants to support the Free Market when it suits Big Business & the Fig Leaf was this would provide Free Market Help to struggling homeowners
Needless to say, Julian Castro is being touted as a potential running mate for Hillary. Both can now boast of their credentials in getting the job done, at least when it comes to transferring wealth from the 99% to the 1%
Perhaps Bernie should stop being so reluctant to answer honestly when asked if Wall Street contributions to Obama had any effect on Obama. Clearly it did & it had one of the highest rates of return imaginable but Obama got elected twice;Wall Street got Geithner, Bernanke & control of the SEC & lower level appointments
4
Bernie's right about Wall Street. This settlement proves it - again.
Goldman Sachs got a sweet deal. No need to wonder how and why.
The fat cats just got fatter.
Goldman Sachs got a sweet deal. No need to wonder how and why.
The fat cats just got fatter.
4
So far the Times is the only major media outlet as far as i know that has reported story. WaPo, and CBS news didn't run anything- nada. Maybe it would throw water on ther Clinton fire, and make Sanders out to be a genious and honest as politicians come, which are true.
2
Government of the 1%, by the 1%, and for the 1%.
4
This is the self-same Goldman Sachs that has given many millions to listen to Hillary Clinton speak, and the self-same Goldman Sachs whose CEO is afraid of Bernie Sanders.
Looks pretty simple to me - vote for Bernie.
Looks pretty simple to me - vote for Bernie.
6
• On April 28, 2003, Goldman Sachs was found to have aided and abetted efforts to defraud investors. Six firms were fined a total of $1.4 billion dollars by the SEC, triggering the creation of a Global Research Analyst Settlement Fund.
• On September 4, 2003, Goldman Sachs admitted that it had misused material, nonpublic information that the US Treasury would suspend issuance of the 30-year bond. The firm paid over $9.3 million in penalties.
• On April 28, 2003, Goldman Sachs was found to have "issued research reports that were not based on principles of fair dealing and good faith .. contained exaggerated or unwarranted claims.. and/or contained opinions for which there were no reasonable bases ". The firm was fined $110 million dollars.
• On January 25, 2005, "the Securities and Exchange Commission announced settled civil injunctive actions against Goldman, Sachs & Co. relating to the firms' allocations of stock to institutional customers in initial public offerings (IPOs) underwritten by the firms during 1999 and
2000 ".
• On July 15, 2010, “the SEC announced that Goldman paid $550 million to settle SEC charges that Goldman misled investors in a subprime mortgage product just as the U.S. housing market was starting to collapse.”.
Their license to do business should have been suspended at the very least. Clearly, they have been able to compromise the NY State officials and DOJ.
This deserves federal judicial review.
• On September 4, 2003, Goldman Sachs admitted that it had misused material, nonpublic information that the US Treasury would suspend issuance of the 30-year bond. The firm paid over $9.3 million in penalties.
• On April 28, 2003, Goldman Sachs was found to have "issued research reports that were not based on principles of fair dealing and good faith .. contained exaggerated or unwarranted claims.. and/or contained opinions for which there were no reasonable bases ". The firm was fined $110 million dollars.
• On January 25, 2005, "the Securities and Exchange Commission announced settled civil injunctive actions against Goldman, Sachs & Co. relating to the firms' allocations of stock to institutional customers in initial public offerings (IPOs) underwritten by the firms during 1999 and
2000 ".
• On July 15, 2010, “the SEC announced that Goldman paid $550 million to settle SEC charges that Goldman misled investors in a subprime mortgage product just as the U.S. housing market was starting to collapse.”.
Their license to do business should have been suspended at the very least. Clearly, they have been able to compromise the NY State officials and DOJ.
This deserves federal judicial review.
5
The politicians who unlocked the door to our nations coffers, and allowed this greatest of heists, had to have been paid big money. Where is the investigation to find these politicians? Where is the investigation to find those who paid them off?
Hello? Hello? Anybody there???
Hello? Hello? Anybody there???
2
I believe the American sequel to "The Panama Papers" premieres in May.
1
Why has no one gone to jail???? If the Federal Government/Politicians push for jail time the bankers will push back and unveil the role the Politicians/Government played as well thus indicting both sides.
1
Credits for affordable housing. I love it, we'll be bombarded with adverts of how Goldman Sachs is helping such and such a community, which is really their slap on the wrist for decimating communities in the first place. Who needs Kafka or Rushdie, when one has the surrealism of American style cronyism.
1
... and it only took a decade to settle.
I guess better late than never for those relatively few to-be-compensated homeowners who 'drowned' years ago. Maybe it's too late for most.
I guess better late than never for those relatively few to-be-compensated homeowners who 'drowned' years ago. Maybe it's too late for most.
2
The global banks committed massive frauds. Not only in mortgages, but in world interest rates, fixing commodity markets, etc. When their house of cards collapsed they told the government bail us out or the entire economy will collapse. And since the global banks had sucked all of the money out of commercial paper (which is oxygen for most companies) it was quite believable.
So they got bailed out, bonuses and all, and proceeded to ignore the promises they made about saving homeowners and foreclosed on as many as possible. Then they sold their properties to hedge funds who are now owners of rental properties.
This all turned abut to be hugely profitable for the global banks. The fines they pay are a fraction of the profits that they made. In fact treasury says that 40% of everyone else's wealth was transferred to the .1% No one went to jail.
So for the global banks and the billionaires that own them, crashing the world economy was all profit, with no downside.
They will do it again. It is only logical. They can create bubbles, sell at the top, and by from all the panicked little guys when the market bottoms out.
Until people go to jail, they will do this again and again.
Unfortunately they write the laws, so they can do anything they want, and it's "legal."
What did Clinton do as Senator from NY? "I told them to cut it out." Well that's not really the kind of experience I'm looking for in a president.
So they got bailed out, bonuses and all, and proceeded to ignore the promises they made about saving homeowners and foreclosed on as many as possible. Then they sold their properties to hedge funds who are now owners of rental properties.
This all turned abut to be hugely profitable for the global banks. The fines they pay are a fraction of the profits that they made. In fact treasury says that 40% of everyone else's wealth was transferred to the .1% No one went to jail.
So for the global banks and the billionaires that own them, crashing the world economy was all profit, with no downside.
They will do it again. It is only logical. They can create bubbles, sell at the top, and by from all the panicked little guys when the market bottoms out.
Until people go to jail, they will do this again and again.
Unfortunately they write the laws, so they can do anything they want, and it's "legal."
What did Clinton do as Senator from NY? "I told them to cut it out." Well that's not really the kind of experience I'm looking for in a president.
7
"Prisons are overcrowded" is a common headline these days. No debate with that except these prisons are usually filled with low level criminals who end up with lengthy sentences because they and their crime is viewed as 'scary' by the general population. Financial manipulation is usually very difficult to understand by most of us, while those who execute these crimes don't look like the usual thugs, have topnotch legal representation, and are often too important to jail. Thus, paying a fine which you can then write off as a business expense is the icing on your criminal cake.
14
Not to mention that given the way the election appears to be going, many of the culprits will be able to rely on FOH (friend of Hillary) factor for protection.
Those inclined to commit the kind of economy-ravaging wrongdoing invoked in this piece are urged to hire Hillary for some more $250,000-a-pop speeches: it's an insurance policy worth having, the best investment you will ever make.
Those inclined to commit the kind of economy-ravaging wrongdoing invoked in this piece are urged to hire Hillary for some more $250,000-a-pop speeches: it's an insurance policy worth having, the best investment you will ever make.
1
does anyone still wonder why campaign finance and more importantly, connections (i.e. accepting donations, giving speeches, employing etc) to Wall Street are an issue in Democratic primary?
4
Maybe this is what Hillary means when she said she will tell the banks to be nice Is this part of the way that we will rein in the too big to fail banks?
Are the individuals who "negotiated" this sweetheart deal with these criminals now going to go to work for Goldman?
Are the individuals who "negotiated" this sweetheart deal with these criminals now going to go to work for Goldman?
5
This article is a prime example why the Criminal Justice System in this Country is rigged.
White Collar Crime goes unpunished and they get a sweet heart deal that allows them to make money and then write it off while the American People "again" pick up the tab.
The American People just cannot catch a break with these criminals around.
Standby everyone, they are going to do this again. It is like money in the bank to them.
White Collar Crime goes unpunished and they get a sweet heart deal that allows them to make money and then write it off while the American People "again" pick up the tab.
The American People just cannot catch a break with these criminals around.
Standby everyone, they are going to do this again. It is like money in the bank to them.
7
This is exactly what Bernie is railing against. 1%'ers commit crimes while their shareholder-owned, publicly traded companies are left holding the bag.
I want to see some shareholder derivative lawsuits instituted against the executive crooks who actually engaged in the wrongdoing. Make them pay for their wrongdoing. Recoup some of their ill-gotten gains, including the bonuses that they award to one another.
I want to see some shareholder derivative lawsuits instituted against the executive crooks who actually engaged in the wrongdoing. Make them pay for their wrongdoing. Recoup some of their ill-gotten gains, including the bonuses that they award to one another.
8
To quote part of the NYTimes article, "A Justice Department official with direct knowledge of the negotiations, who spoke on the condition that his name not be disclosed, said that the banks were given extra credit for activities that the government wanted to encourage...." Perhaps the next time the banks create another of their profit motivated disasters for the U.S, and world economy, and I fully expect there will be a next time relatively soon, a Justice Department official will announce that several of the bank executives involved will be paying large fines and serving jail sentences. Following that I would not expect a new disaster created by the banks relatively soon thereafter.
8
Yes, it's past time for individual people to be punished, rather than simply making the "organization" pay some penalty.
2
I hope all these commentators expressing understandable outrage regarding the criminal and unethical scamming of the American people are going to vote for Senator Bernie Sanders. He is the only way that we can break the strangle hold that the wealthy immoral cheats currently have over our government.
12
I see Goldman is buying a company called Honest Dollar. Are they going to change the name? Oh, forgot there is no truth in advertising.
3
The best way to rob a bank is to own one. I am appalled that GS will also be getting a write-off for the fines. This means that the people, the tax-payers will end up paying for Goldman Saks criminality. This was a criminal case not a civil case. If you or I were to steal a candy bar we would be looking at a year in jail.
7
The low income housing credit is an incentive to spur investment in low income housing and is considered one of the few federal tax credits that actually works in that it increases the activity it is designed to increase above the baseline that would otherwise exist. It can be argued that in Goldman's case, the credit doesn't accomplish anything since its investment in low income housing is not voluntary. However, if the credit wasn't available, it's not clear that Goldman would have been willing to allocate as much of the settlement to affordable housing.
I certainly hope Goldman was not given any special credit for low income housing that is not part of current law. I also feel that way about any other tax credits they received. If the settlement requires them to make expenditures for which any other taxpayer would receive a credit, it's ok if they claim those credits. But they should not be getting any tax breaks that go beyond that.
I certainly hope Goldman was not given any special credit for low income housing that is not part of current law. I also feel that way about any other tax credits they received. If the settlement requires them to make expenditures for which any other taxpayer would receive a credit, it's ok if they claim those credits. But they should not be getting any tax breaks that go beyond that.
2
I also wonder if a big part of the fine will be tax deductible as was the case for other banks' fines. Appalling. And essentially a racket against the public.
3
Put in perspective, the mortgage crisis cost the economy a whopping 2.5 trillion dollars. So many played a part. First, the borrowers who, with the help of corrupt brokers and loan officers, lied about their qualifications to obtain the loans they knew they couldn't repay, then the Barney Frank-Christopher Dodd conspirators who threatened the lenders with tougher regulations unless they made loans to minorities using relaxed standards in order to satisfy their constituencies that were complaining they were being "locked out" of the American dream of home ownership, then the banks and their rating agencies who "bundled" the bad loans with others and sold them as securities. The fraud was pervasive; the only real victims were those poor saps that bought their homes in the inflated price market and find themselves still underwater on their mortgages. What relief will they get? Butkus! Can you now better understand the Sanders-Trump outraged indignation?
20
More "blame the victim" excuses for wall street. The people who lied about their qualifications for a loan were exponentially outnumbered by those duped into mortgages that benefitted the broker with higher commissions, to the detriment of the mortgagor. These were the lion's share of the defaults in this scenario. If wall street had not leveraged their bad investments so deeply, this would have not effectively cratered the world economy. Unethical greed plain and simple.
3
Nobody buys a home knowing they won't be able to pay for it. It makes no sense to set yourself up to be thrown out. When you go to an expert you expect the expert to know how to fill out the paper work.
When they expert, who you think wants you to have a loan you can repay, so they can get paid tells you the payments are very low, and we don't need your income, many first time homeowners, putting down their life savings, believed it.
They didn't realize that their loan was meant to feed a giant fraud based on loans the lender figured would fail, but that they could foist on to some investor.
The people that lost their homes out of this are victims. Stop trying to blame them because the people you claim are so smart and work so hard that they deserve to get paid billions did the wrong thing on purpose.
When they expert, who you think wants you to have a loan you can repay, so they can get paid tells you the payments are very low, and we don't need your income, many first time homeowners, putting down their life savings, believed it.
They didn't realize that their loan was meant to feed a giant fraud based on loans the lender figured would fail, but that they could foist on to some investor.
The people that lost their homes out of this are victims. Stop trying to blame them because the people you claim are so smart and work so hard that they deserve to get paid billions did the wrong thing on purpose.
3
joe russ, you lie. Frank.Dodd had nothing to do with lax lending standards: it was an attempt to deal with the problem after the fact. You right wingnuts know this full well but continue to spread your poison.
When did these sweet heart negotiations sweeten...... I wonder.
2
It's impossible to justify setting these matters in this way on any ethical or even logical ground I can think of. If GS knowingly sold improperly rated securities to investors then the people who sold them or who constructed the deal are guilty of fraud. They should go to jail, period. If this was all a big mistake involving fools and not criminals then there shouldn't be a fine at all. The public interest would be much better served by a trial in open court, regardless of outcome than meaningless amounts of money paid by the shareholders of the banks. Not one of these cases has come to trial and so we are left wondering what actually happened, specifically in this area - sub prime loans magically morph into AAA bonds.
7
How many American and other nation's victims have there been for every million GS has pocketed? Why aren't those victims being compensated instead of the government essentially being bought off for this "fine". Outrageous!
9
Again & again CRIME DOES PAY & pay VERY well on Wall ST ! No real consequences besides writing a low ball check with numerous deductions will simply be the cost of doing business.
7
And who is going to jail? If some of these guys who orchestrated and profited from this crime spent a few years behind bars, other hotshot investment bankers, as well as the Jamie Dimons of the world, might think twice before illegally decimating the economy and cheating people out of their savings.
8
"A Justice Department official with direct knowledge of the negotiations, who spoke on the condition that his name not be disclosed ..."
But of course!
Why should a Justice Department official have to identify himself? It's not as if he works for the American people. He works for the Times!
But of course!
Why should a Justice Department official have to identify himself? It's not as if he works for the American people. He works for the Times!
5
Justice isn't justice any more!
2
"Let me tell you about the very rich. They are different from you and me. They possess and enjoy early, and it does something to them, makes them soft where we are hard, and cynical where we are trustful, in a way that, unless you were born rich, it is very difficult to understand. They think, deep in their hearts, that they are better than we are because we had to discover the compensations and refuges of life for ourselves. Even when they enter deep into our world or sink below us, they still think that they are better than we are. They are different."
– F. Scott Fitzgerald, "The Rich Boy"
And apparently they have better lawyers and tighter friends than we do at "our" Department of Justice.
– F. Scott Fitzgerald, "The Rich Boy"
And apparently they have better lawyers and tighter friends than we do at "our" Department of Justice.
8
What is absurd about this is that Goldman Sachs is a corporation, an inanimate object, incapable of doing anything. The wrongdoers were PEOPLE. Why are these PEOPLE not fined, prosecuted and punished.
12
It's just so typical of the misdirection that happens in the collusion between the banking and political classes. Where are the punitive prison sentences for these people? Real debilitating financial consequences? I have a great idea! The middle class should stop paying their taxes. Just like the rich and the corporations. Wonder how that would work out for the country?
6
It would be nice if every criminal organization could negotiate such sly sweetheart deals - and what happens to the 2.4 billion civil penalty? Who gets that money? Goldman's victims? The State? And if the latter what do they do with the money? Help Goldman's victims? It all retains the murkiness and stink of the original criminal acts that almost brought down the world financial system.
4
Isn't it true that crimes don't committ themselves, People committ crimes? Indeed wasent the successful crime fighting strategy behind NYC' historic crime reduction (in lieu of security based placement of personnel) to agressively go after those individuals who are committing crimes and hold them personally accountable? What has changed and why has the NYT, certainly not shy about publishing allegations, including identification of 'suspects', about cops nationwide alleged to be part of some devious 'attack on unarmed black men' mindset, apparently decided that personal responsibility and identity is not as important here? Might personal affiliations and resulting relationships serve to further the 'cat got yr tongue' consequence; and who's investigating that part of the story? This whole thing stinks to high heaven!
5
I believe the money should go to the investors who purchased the securities - I don't understand why the government retains some of the money and the balance is 'reinvested' in low income housing. Why the government got involved is a mystery to begin with - the Justice Dept. has been consistently overstepping it's boundaries. I read this morning a judge found evidence the Justice Dept. lied when it stated in 2012 the GSE's were a threat to U.S. taxpayers - records from Fannie's CFO state the GSE's were on a sustained course towards profitability. It's hard to believe Justice officials would misstate the truth in order to capture those profits, but it appears that's exactly what they did.
2
"In January, Goldman said that it put aside $3.4 billion in 2015 to cover the costs of what would become its $5 billion settlement."
I assume that is a rational decision based on the amount the bank actually expects to pay.
I don't know which of the many things wrong with this agreement is worst:
(1) that the effective maximum that Goldman will pay for affordable housing is $68 million vs. the $280 million announced.
(2) that the money Goldman spends on consumer relief is actually subsidized by the taxpayers since Goldman will be able to deduct this amount from their earnings.
(3) that the Obama Justice Department and the New York attorney general have colluded with Goldman Sachs to deceive the public.
New Yorkers, please vote for Bernie!
I assume that is a rational decision based on the amount the bank actually expects to pay.
I don't know which of the many things wrong with this agreement is worst:
(1) that the effective maximum that Goldman will pay for affordable housing is $68 million vs. the $280 million announced.
(2) that the money Goldman spends on consumer relief is actually subsidized by the taxpayers since Goldman will be able to deduct this amount from their earnings.
(3) that the Obama Justice Department and the New York attorney general have colluded with Goldman Sachs to deceive the public.
New Yorkers, please vote for Bernie!
12
I hope Mr. Sanders and his staff no only read this article, but rigorously incorporate the findings into his debate performance Thursday, with incisive statistics and emphasis on Ms. Clinton's cozy ties with Goldman Sachs. Indeed, since this development shows an enormous windfall for Ms. Clinton's Wall Street patron, Ms. Clinton can legitimately be construed as a personal beneficiary of this windfall: Goldman Sach's prosperity is also her prosperity.
We cannot afford a president having her personal finances so closely tied to a bank embodying the greed destroying our society.
We cannot afford a president having her personal finances so closely tied to a bank embodying the greed destroying our society.
5
To add insult to injury, Goldman admitted no wrong doing and no bank official was charged with any crime.
11
Did the buyers of these defective mortgage back securities sue Goldman? Are the settlements with the government separate from suits by these customers? Who were these customers? Why would these customers who were defrauded continue to do business with them? Did they lose money or were many of them part of the fraud? I have seen no discussion in the media about this aspect of the crash. A thorough investigation might uncover a much deeper and broader level of corruption than what has be revealed so far. "Methinks something is rotten in the state of Denmark."
5
I hope they do sue Goldman. The "if they only knew" email comment, showing GS knew the mortgages did not deserve their inflated rating GS (with John Paulsen's conniving) used to lure gullible investors, should be enough a a smoking gun to show GS knowingly sold a worthless product.
I hope Mr. Sanders will SYSTEMATICALLY demonstrate both the corruption, the taxpayers' subsidization of this malfeasance, and Clinton's financial tie to Goldman Sachs.
Bernie: you must STUDY, STUDY, STUDY up on the details and numbers here, the corrupt windfall at taxpayer expense, the mendacity of Goldman Sach's fraudulent bundling of CDOs that the taxpayer would bail out, and Clinton's taking more than most Americans earn in a lifetime from Goldman Sachs for 3 speeches.
I hope Mr. Sanders will SYSTEMATICALLY demonstrate both the corruption, the taxpayers' subsidization of this malfeasance, and Clinton's financial tie to Goldman Sachs.
Bernie: you must STUDY, STUDY, STUDY up on the details and numbers here, the corrupt windfall at taxpayer expense, the mendacity of Goldman Sach's fraudulent bundling of CDOs that the taxpayer would bail out, and Clinton's taking more than most Americans earn in a lifetime from Goldman Sachs for 3 speeches.
4
Corporations are people, we are told. Until they aren't.
7
Tax benefits along with a fine? Incentives? Credits?
So that's why it's called... a FINE.
Everything is just "fine" as far as Goldman Sachs is concerned.
And they can go on from here, profitably "sach-ing" the economy.
https://emcphd.wordpress.com
So that's why it's called... a FINE.
Everything is just "fine" as far as Goldman Sachs is concerned.
And they can go on from here, profitably "sach-ing" the economy.
https://emcphd.wordpress.com
6
See that's what paying politicians huge for speeches gets you. The writer did not want to go there .Why
2
I love this country. I'm quite sure that net, net Goldman is way ahead on the 2008 financial meltdown - even after this wrist slap - and would happily do it all again when one factors in the other side of these transactions - the fact that their trading group was happily shorting the very mortgage backed trash that that the fixed income group was packaging and selling to the public. Alas, the perfect double dip - they collect a commission on sale and profit again when the instrument fails and their short goes into the money. Too Big To Fail? Perhaps, but apparently too well connected to suffer any real consequences. Where's the claw-back on the profits? Seems the "statement of facts outlining their wrongdoing" was a little deficient. Shame on the DOJ for not being a little smarter - or tougher - here.
11
The justice department is a joke. Why should the culprits get a tax deduction? And why extra credit-insane
12
Those politicians who unlocked the door, allowing for this so called "Legal" theft should be doing time.
6
Do i understand this correctly Because of these Credits the American Tax Payer is subsidizing the Banks for an activity which boarders on fraud.
2
No, you don't understand it correctly, because that's only a small part of the picture. What is being subsidized and paid for by the taxpayer is the private enrichment of people like Hillary Clinton ($675,000 'for 3 speeches', yeah right) who winkingly assure GS that when in office she will have their back.
3
Why is it people think money and power is some sort of modern invention and that only modern wealth is corrupt. This IS our heritage. Don't like it? That only means you are not one of the "winners". If Americans really want a democracy, fair economics, government by the people, Americans are going to have to stop listening to propaganda and start reading and thinking for themselves. Including learning what the terms socialism, communism, capitalism etc. really mean. That will require that they no longer listen to Fox News or Ted Cruz or whoever is in our political theater yelling fire. I don't see it happening. Seems to m complaining that Goldmine Sachs got a good deal is more jealously than actual concern.
3
Looks like Goldman's past political contributions have realized a nice return on investment. Do you believe things would be any different with President Hillary?
10
Hillary has already been paid her share, or at least a down payment of her share.
Let's put it this way: if against all odds Hillary turns out to be a reformer and tries to hold Goldman Sachs accountable for any wrongdoing, they would have a breach of contract case against her since everybody really knows the $675,000 is to buy her loyalty. We all know, however, Hillary will honor her commitments (explicit and tacit) to Goldman Sachs, not only the beholdenness already paid for, but in anticipation of lucre expected (and tacitly promised) after a Clinton administration.
Let's put it this way: if against all odds Hillary turns out to be a reformer and tries to hold Goldman Sachs accountable for any wrongdoing, they would have a breach of contract case against her since everybody really knows the $675,000 is to buy her loyalty. We all know, however, Hillary will honor her commitments (explicit and tacit) to Goldman Sachs, not only the beholdenness already paid for, but in anticipation of lucre expected (and tacitly promised) after a Clinton administration.
1
Like the 3.4 billion Goldman the many many millions they have paid Hillary for the speeches we know about is a coat of doing business, or money "put aside to cover its costs".
1
I first saw this settlement announcement on the TV news. It was followed shortly thereafter by a story about a overnight delivery man at a Five Guys who the police were looking for because he was caught on camera making himself a hamburger before leaving. I kid you not. So we have a system where we want to arrest someone for making a hamburger but let shareholders pick up the tab for billions of dollars in theft, homes lost, lives destroyed and no one responsible go to jail. Notice that in all the newspaper articles you read about this settlement, not one name at GS is mentioned.
9
The disgusting failure to prosecute a single individual in connection with the rampant fraud associated with the sale of mortgage backed securities is largely on Eric Holder, a corporate lawyer at Covington and Burling before his appointment as USAG and, significantly, after.
As the Wikipedia entry on Holder states: "In July 2015, Holder rejoined Covington & Burling, the law firm at which he worked before becoming Attorney General. The law firm's clients have included many of the large banks Holder declined to prosecute for their alleged role in the financial crisis. Matt Taibbi of Rolling Stone opined about the move, "I think this is probably the single biggest example of the revolving door that we've ever had.""
This is Holder's fetid legacy as AG.
Apparently Ms. Lynch, like Holder, has a cushy corporate law job waiting for her after her tenure as AG as well, as evinced by her continuation of his policies of no criminal prosecutions and sweetheart civil penalties like Goldman just skated on.
It was sickeningly ironic then that Lynch held a big press conference lately touting the indictment of Iranian hackers which cost certain US banks and their customers "millions" while doing nothing to bring individuals to justice who cost US citizens billions.
For a brilliant but depressing explication of the cause and effect of the mortgage crisis and the lack of consequences for those responsible see The Big Short.
Have a barf bag handy.
As the Wikipedia entry on Holder states: "In July 2015, Holder rejoined Covington & Burling, the law firm at which he worked before becoming Attorney General. The law firm's clients have included many of the large banks Holder declined to prosecute for their alleged role in the financial crisis. Matt Taibbi of Rolling Stone opined about the move, "I think this is probably the single biggest example of the revolving door that we've ever had.""
This is Holder's fetid legacy as AG.
Apparently Ms. Lynch, like Holder, has a cushy corporate law job waiting for her after her tenure as AG as well, as evinced by her continuation of his policies of no criminal prosecutions and sweetheart civil penalties like Goldman just skated on.
It was sickeningly ironic then that Lynch held a big press conference lately touting the indictment of Iranian hackers which cost certain US banks and their customers "millions" while doing nothing to bring individuals to justice who cost US citizens billions.
For a brilliant but depressing explication of the cause and effect of the mortgage crisis and the lack of consequences for those responsible see The Big Short.
Have a barf bag handy.
7
And who was the lawyer that okay'd the Marc Rich pardon? None other.
2
The biggest problem is that not ONE of the executives responsible will go to jail.
My suspicion is that the number of people criminally responsible is between one and two dozen. If they all had between one and five years in jail, this behavior on Wall Street would stop VERY quickly.
My suspicion is that the number of people criminally responsible is between one and two dozen. If they all had between one and five years in jail, this behavior on Wall Street would stop VERY quickly.
9
10 years after the misdeeds and 8 years after the meltdown in part caused by these misdeeds, the US and GS finally enter into a settlement. The wheels of Justice turn so very slowly for these huge financial crimes.
The article does not explain why the long delay. Nor does it provide any insights as to why such obvious misdeeds did not result in heftier fines or prison time.
Perhaps the Presidential candidates could discuss how they would change laws to give the Government a better hand in these kind of cases. Expressing outrage is only the start, not the end of the discussion.
The article does not explain why the long delay. Nor does it provide any insights as to why such obvious misdeeds did not result in heftier fines or prison time.
Perhaps the Presidential candidates could discuss how they would change laws to give the Government a better hand in these kind of cases. Expressing outrage is only the start, not the end of the discussion.
12
Would you please pass this on to Paul Krugman who seems to feel that we have no valid reason for wanting to "break up the big banks." Goldman Sachs received $10 billion in TARP bailout money. So, they "admitted" criminal behavior, but only received a literal "slap on the wrist" fine that leaves them a few billion ahead on the taxpayers' tab. And, as the article notes the four really big banks that received a total of $140 billion in TARP bailout have similarly paid small fines. If you still don't feel they're "Too Big to Fail" and "Too Big to Jail," then you're either a Wall Street financier, a Clinton supporter, of maybe just a famous columnist at a major media company.
13
They didn't receive $10 billion, it was loaned or invested and the government ended up making a positive return. Nothing was given to them. Yes, the $5 billion settlement number may be a bit of PR but if the real number is $4 billion it is still substantial. Always remember these securities were sold to institutional investors who were equally aware of the quality of the underlying loans. As pointed out in "The Big Short" there were many investors publicly challenging the market's assumptions and they were ignored. As always, in a capitalist society, the buyer should always beware!
1
If you'll recall, GS paid back it's TARP money with interest.
1
Greg & Reasonable (?) Person. And who says "crime doesn't pay!"
Sounds like Geitner was involved with this deal. He let the big guys off easy from the beginning.
7
I love the righteous indignation of some of the comments.
Goldman negotiated a settlement with the government, you can blame Goldman for being greedy but be angry at the government for being lenient and stupid and allowing the loopholes to exist in the agreement. Their fines should have been every penny they made from credit default swaps and whatever other instruments they profited from and that money should go to a fund to help people, not the governments pockets.
Goldman negotiated a settlement with the government, you can blame Goldman for being greedy but be angry at the government for being lenient and stupid and allowing the loopholes to exist in the agreement. Their fines should have been every penny they made from credit default swaps and whatever other instruments they profited from and that money should go to a fund to help people, not the governments pockets.
8
Sorry to admit this, but I still don't understand why the banks weren't treated like people who committed crimes (see Citizens United). At least the people directly involved could have been singled out, one would think.
I don't really know about criminals who get to spend eight or nine years "negotiating" their punishment and fines and who reap some actual benefit from that process. Very odd. A long way from a regular old plea bargain....
Guress the perp walks I longed for won't be happening, sigh.
I don't really know about criminals who get to spend eight or nine years "negotiating" their punishment and fines and who reap some actual benefit from that process. Very odd. A long way from a regular old plea bargain....
Guress the perp walks I longed for won't be happening, sigh.
1
"Let me understand, the value of my home dropped from $404,000 in 2005 to $235,000 at present and the settlement go to low income housing?"
to Joseph +
why not? the middle class as in bourgeoisie always pays for the high living of the political class and the super rich as well to courting the poor through welfare and other giveaways.
like in France you still have your respectability.
to Joseph +
why not? the middle class as in bourgeoisie always pays for the high living of the political class and the super rich as well to courting the poor through welfare and other giveaways.
like in France you still have your respectability.
4
Nothing to look at here. Just move along. As usual, whatever is paid will not affect, by even one dollar, the compensation of any of the Goldman Sachs executives or traders responsible for helping to plunge the US in the most severe economic disaster since the Great Depression. Any economic burden will be borne solely by Goldman shareholders -- just as the cost of bailing Goldman out of its credit default swaps with otherwise bankrupt AIG was borne by US taxpayers. Not even a wrist-slap for any of the human beings whose cynical if not criminal behavior caused this disaster. At this very moment, Goldman executives and traders are giving each other high fives for averting any damage to the firm or themselves. And the beat goes on. Nothing has changed or will change. In fact, Goldman shares will probably trade higher as the uncertainty of a so-called "major" government investigation comes to an end.
8
Totally typical and the government is in bed with them, making it look like it, the pathetic, impotent government, got something when actually it GAVE away the taxpayers dollars, the few of us that pay. This is outrageous and thank you for the reporting.
1
the federal government is the enabler of this kind of behavior by encouraging/ forcing bank to lend for mortgages to low income people particularly minorities,
who should never have received mortgages in the first place. this is crony capitalism or creeping socialism at its worst. the federal government becomes the ipso facto credit allocator to further its social engineering schemes. this whole travesty would never have happened in a free market for mortgages.
now that the federal government is basically broke, because of excessive spending, it is trying to claw back billions from the private sector.
who should never have received mortgages in the first place. this is crony capitalism or creeping socialism at its worst. the federal government becomes the ipso facto credit allocator to further its social engineering schemes. this whole travesty would never have happened in a free market for mortgages.
now that the federal government is basically broke, because of excessive spending, it is trying to claw back billions from the private sector.
2
What an outrage! They get deduct penalties from their taxes!!! Berne Sanders is right. These bums should have their assets expropriated as the fruits of illegal gains, then thrown in jail!!!!
8
When this happens again, and it will, some of these banker types need jail time, not simply fines that the employer pays, jail time....
It may have a profound effect on this occurring again
It may have a profound effect on this occurring again
5
That can only happens if our lawmakers, for the majority of time the Republican Congress, will get rid of those loopholes and add stiff jail-time for those criminals and place them with the small time crook for a long time, like 10 years. That will change the system, or they just move overseas.
Have we no prisons in America? The top management of Goldman Sachs defrauded the buyers of bonds that had been packaged by GS with sub-prime mortgages, yet fraudulently touted them as investment grade. GS then proceeded to short these same bonds because their top executives knew that those packaged mortgages, which sold to homeowners with lousy credit who could not afford them, were certain to default. T
There may be no laws against greed but surely there are statutes against criminal fraud, and criminal penalties that call out for prison time.
There may be no laws against greed but surely there are statutes against criminal fraud, and criminal penalties that call out for prison time.
9
This is exhibit #1 in why we need new people in government. This is the
type of corruption that makes you want to scream. For those who do not
understand Wall Street, this is a "shake down", where the cop on the beat
sees a j-walker and says that he let him go if he gives him $10. It is total corruption. None of the money goes to the US or state treasuries. It is
going to politicians like the NY Attorney General who can use it in
their next election campaign.
The media is complacent in that this is the first time it has revealed
to the public how the funds are being spent. In the past, there were promises that the funds would be spent on liberal programs and that was sufficient to quiet the media.
This type of corruption supports bad government.
type of corruption that makes you want to scream. For those who do not
understand Wall Street, this is a "shake down", where the cop on the beat
sees a j-walker and says that he let him go if he gives him $10. It is total corruption. None of the money goes to the US or state treasuries. It is
going to politicians like the NY Attorney General who can use it in
their next election campaign.
The media is complacent in that this is the first time it has revealed
to the public how the funds are being spent. In the past, there were promises that the funds would be spent on liberal programs and that was sufficient to quiet the media.
This type of corruption supports bad government.
3
Since Paul Krugman tells us the TBTF banks had nothing much to do with financial crisis, this is a nothing story. Right???
6
It's a DEAL not a settlement.
1
Remember last week when Bernie got excoriated by HRC and the MSM because he fumfered about answering the "how to break up the banks" question? I'd rather have someone who doesn't have all the answers but at least wants to do something about this injustice. HRC, Ted Cruz, Paul Ryan et.al. are simply quislings of the Banskters, who look at them with comtempt. Trump is just a buffoon. Bernie, for all his considerable warts, is the only one with a backbone and a sense of decency. Unfortunately he is unelectable and would probably not accomplish much if elected. What a horrible choice. The leadership of this country has no soul.
11
I am so weary and disgusted with the deviousness of big business. This greed and mendacious behavior is no longer isolated to a few bad eggs; it is a pandemic. I am old enough to remember the US when these predators were rare and the size of the monies were relatively small. There were always a few men preying on the public like the Astors, the Carnieges etc. but now it's spread to your corner drug store and they all get away with it. One of the greatest root cause besides greed is lawyers. Disgusting!
10
IT is the system that allows these loophole laws to exist. The little burglar gets a hefty jail sentence. The big crooks, corporations, congress people who make and allows these laws paid by the tax payer, gets away with a slap. Really, what is the citizen to do?
2
Homeowners who tried in good faith for a work-out instead got lowest price mortgage servicers losing their paperwork, over and over. Foreclosures were robo-signed and given to one law firm in upstate NY who was eventually sanctioned for sloppy practices (he was the cheapest bid).
Imagine if the QE money was directly credited to mortgages....
Right now, the .01 are stressing that someone other than Hillary or a wholly owned Republican will win. Even so, they still have Congress and half of the Judiciary.
Imagine if the QE money was directly credited to mortgages....
Right now, the .01 are stressing that someone other than Hillary or a wholly owned Republican will win. Even so, they still have Congress and half of the Judiciary.
3
Truth, justice and the American way:
Steal the tax revenue from a loose cigarette, pay with your life.
Steal billions from ordinary people across the globe, pay a fine.
Steal the tax revenue from a loose cigarette, pay with your life.
Steal billions from ordinary people across the globe, pay a fine.
5
It's hard to know just what it will take to get these miscreants to straighten up and fly right. Fines don't do it. But I suspect significant jail time plus exclusion from further involvement in the financial industry would make them think twice before trying to rip off the public.
3
Things being relative, how does this fine--whatever the number turns out to be-- affect the bottom lline of GS? My guess, not much. They'll make it up easily enough in the rigged environment they operate in. What's galling is that rigged environment isn't sufficient for GS, they still decide to cheat. And unless they're criminally prosecuted for their misdeeds, the good folks at GS will not change their behavior.
3
Who knows what the right amount should be for this penalty. I think the real story here shouldn't be how Goldman is paying less than the $5.1 billion. But rather why isn't 100% of the money going to the Americans who lost their homes or more because of the mortgage crisis instead of into the Fed's bank account?
7
Hope that the money paid in legal fees justifies the deal :)
I feel better now learning that Goldman saves $1 billion. As for all those tossed out of homes or with credit ruined by the scam ...
2
Goldman Sachs would be a criminal organization if it weren't for the fact that they give so much money to politicians so that they won't make laws against what they are doing. Probably not good English but you get the point.
9
Such a deal and nobody dose any jail time. Being a banker has benefits.
1
"Legacy matters." It happened 8-10 years ago - ancient history they're not responsible for. Incredible.
To me the thought of Goldman Sachs getting off for even the full amount of the fine is a travesty. Were anyone aside from a Wall Street bank, whose CEO had made tens of millions of dollars in donations to both political parties, there would be jail time in addition to the fines.
As it stands, Goldman Sachs gets a one finger slap on the wrist, and whatever money is collected disappears into the maw of the Treasury Department - perhaps to some secret fund for future bank bailouts. Meanwhile the millions who lost their homes, their jobs, or substantial portions of their hard-earned savings, what do we get? Nothing. And that in a nutshell is equal justice under law in the USA.
As it stands, Goldman Sachs gets a one finger slap on the wrist, and whatever money is collected disappears into the maw of the Treasury Department - perhaps to some secret fund for future bank bailouts. Meanwhile the millions who lost their homes, their jobs, or substantial portions of their hard-earned savings, what do we get? Nothing. And that in a nutshell is equal justice under law in the USA.
Yesterday Paul Krugman was saying that most of institutions that were involved in the financial crisis were not banks, in the sense that they don't accept deposits, and I guess maybe they don't have perky tellers waiting to cash your meager paycheck (as if any banks did any more). True, but tomayto/tomahto in my book. An investment bank is still a bank, and here is yet another example of the skullduggery that has made so many of us grit our teeth and look for someone to elect that hasn't been and hopefully cannot be purchased by Citizens United-fueled PAC dollars.
1
And once again no criminal penalties for the biggest theft in history. Disgusting.
5
Since corporations are people then they should get the sentences that people get for this kind of massive fraud. But since no one goes to jail for this why expect different behavior from the corporations?
These guys have always had it their way but the sense of fairness has been stripped away, or the veil removed, and this is what outrages. In this country when you steal a little they put you in jail, when you steal a lot they make you king...
These guys have always had it their way but the sense of fairness has been stripped away, or the veil removed, and this is what outrages. In this country when you steal a little they put you in jail, when you steal a lot they make you king...
3
Hillary: Release those transcripts!!
5
The fix is in...and has been for a long time.
3
Yes . . . I hope Bernie Sanders uses this as another point of debate with Hillary Clinton.
Maybe Hillary Clinton can inform us who are her economic advisers ?
Hmmmm . . . perhaps Goldman Sachs disciples of Bob Rubin ?
Face it, Clinton supporters . . . your candidate is a 1%er and you are voting for her to represent we 99%ers.
The Clintons have become considerably more wealthy since the 90s.
Vote actions . . . not words.
Also . . . I'd appreciate Elizabeth Warren to weigh in on this. She's my senator and neighbor. I voted for her expressively to sound the alarm on such matters.
I need to trust she won't go silent on issues like this because it's an election year and her primary endeavor is now calm waters for the Democratic Party.
Maybe Hillary Clinton can inform us who are her economic advisers ?
Hmmmm . . . perhaps Goldman Sachs disciples of Bob Rubin ?
Face it, Clinton supporters . . . your candidate is a 1%er and you are voting for her to represent we 99%ers.
The Clintons have become considerably more wealthy since the 90s.
Vote actions . . . not words.
Also . . . I'd appreciate Elizabeth Warren to weigh in on this. She's my senator and neighbor. I voted for her expressively to sound the alarm on such matters.
I need to trust she won't go silent on issues like this because it's an election year and her primary endeavor is now calm waters for the Democratic Party.
2
Don't forget that Cruz gets money from GS as well.
2
I wish I had these tax breaks.
1
How about that choice of words in their statement? It turns out that all of this was a "legacy" like an inherited estate cost or a bad piece of DNA.
We probably all, if we own up, know somebody who got a DUI and found themselves bothered by a legacy of lawyer's fees and fines without the fortunate option of being able to write-off even a dollar of these warranted penalties.
Pay and/or go to jail.
This is an absolute, disgraceful, disgusting and almost criminal failure of our misnamed justice system. Why bend over backwards to treat these swindlers in this special way?
Pay and/or go to jail.
We probably all, if we own up, know somebody who got a DUI and found themselves bothered by a legacy of lawyer's fees and fines without the fortunate option of being able to write-off even a dollar of these warranted penalties.
Pay and/or go to jail.
This is an absolute, disgraceful, disgusting and almost criminal failure of our misnamed justice system. Why bend over backwards to treat these swindlers in this special way?
Pay and/or go to jail.
A guy with an ounce of pot goes to jail for life in Texas. Goldman ruins the lives of millions of Americans and no one goes to jail. Some country we got here.
8
I'm guessing this is the reason they're willing to pay political notables $200k for making a speech.
1
hilary clinton got $675k per speech. but yeah, it's the gop that's the party of millionaires and billionaires...oh, and the deal was negotiated by obama's do
1
No, it was $225k per speech for 3 speeches
The CEO of Goldman, Lloyd Blankfein, should be spending the rest of his life in prison, a fair penalty for the crimes he committed against the people. This is President Obama's biggest failure - refusing to imprison the Wall Street bankers who committed crimes against the people. And the crimes will continue if HRC is President.
5
Bill, you would be right if most of the actions that caused the economic meltdown had been unlawful, illegal. In fact, sadly, they were not, which is why although they might have been, and remain, unethical they are not prisonable offenses. This concept is something that the media have not emphasized and the general public has not understood. That this monetary penalty actually might contain a 20% discount is execrable.
So, Goldman gets caught defrauding the public out of billions, only has to pay some of it back, and gets a tax break to boot?
Who says crime doesn't pay!
Who says crime doesn't pay!
2
The NYTimes' support of the the Goldman Sachs candidate, and their blackout of the anti-Wall Street candidate, is an example of the foxes guarding the henhouse. I can't underscore this enough as someone with first-hand knowledge: sr. editors, columnists, and management at the top 5 papers make extraordinary salaries. With partner salaries combined, these people ARE the 1% to 5%. Wall Street candidates reflect their consumerist values - more for me, and less for you. Private school for my kids, public school for yours. There is not enough granite on the planet to support the insatiable need for kitchen renovations for this class. Their values largely ARE Wall Street values.
3
Let me understand, the value of my home dropped from $404,000 in 2005 to $235,000 at present and the settlement go to low income housing?
3
Fines are meaningless. The cost just gets passed on to the shareholders. We put a kid in jail for stealing $1,000. Until we put CFOs and CEOs in prison for long periods of time nothing will change. There is no incentive NOT to break the law. Fines do NOTHING.
4
Only in America can you get tax breaks for a penalty you received for massive wrongdoing.
2
Terrible, terrible. Could the Obama Administration have made it any clearer? That it is in Goldman's pocket?
2
b-b-b-b-but it's the gop that's the party of millionaires and billionaires!!!!
1
Financial incentives for tanking our whole economy?! Explain to me what financial incentives accrue to all the people who've been incarcerated for minor drug offenses? Oh, I forgot--to paraphrase Leona Helmsley, only the little people go to prison.
2
Assuming there is a reason for deals like this with banks (see details to other bank deals below), the administration's full explanation for why there are no prosecutions and penalty reductions were accepted is needed. It is the public that was harmed. We deserve an explanation.
Morgan Stanley -http://www.nytimes.com/2016/02/12/business/dealbook/morgan-stanley-to-pa...
Barclays, JPMorgan Chase,Citigroup and the Royal Bank of Scotland -
http://www.nytimes.com/2015/05/14/business/dealbook/5-big-banks-expected...
There are more!
Morgan Stanley -http://www.nytimes.com/2016/02/12/business/dealbook/morgan-stanley-to-pa...
Barclays, JPMorgan Chase,Citigroup and the Royal Bank of Scotland -
http://www.nytimes.com/2015/05/14/business/dealbook/5-big-banks-expected...
There are more!
3
What a relief, now they can afford more speeches.
2
Only a small portion of this settlement will help consumers.
The American Government Sacks Goldman that Sacks America.
The American Government Sacks Goldman that Sacks America.
Why would anyone risk becoming a traditional bank robber when all you need to do is go to work for a bank.
1
As in so many things, the fix is in. Does anyone doubt that Goldman's political connections, donations, and overall pull get it a break on everything it does? Senator's seats, Governorships, even Secretaries of the Treasury and of State are for sale to Goldman and its partners.
1
So let's say I place my wallet on a table and say this to 1,000 people:
"This wallet has $10 million in it. If you steal it you will be found out and pursued in civil court. You will not be jailed, and you will pay a $5 million fine. Oh and by the way, no one will ever say it was you, personally, who did the stealing - just someone you work with."
How many people would take that deal?
"This wallet has $10 million in it. If you steal it you will be found out and pursued in civil court. You will not be jailed, and you will pay a $5 million fine. Oh and by the way, no one will ever say it was you, personally, who did the stealing - just someone you work with."
How many people would take that deal?
1
Goldman Sachs wouldn't have even qualified for TARP funds because they were not a traditional bank where deposits were FDIC insured. They received a last minute banking license in November 2008 only so they could be bailed out and remain whole.
The granting of that license by our government was a fraud.
The granting of that license by our government was a fraud.
35
Absolutely! I was reporting from Washington, D.C. and we scribes down in the Treasury Press Room were stunned that GS had pulled off this coup; the total capture of the FED and Treasury so GS could get it's snout in the taxpayer's pocket along with other commercial banks.
2
The following is a crime for which only jail time can pay:
"Goldman then packaged these loans into bonds that were able to get the highest rating from credit rating agencies. The loans were sold to investors, who sustained losses when the loans went sour.
Over the course of 2006, Goldman employees took note of the decreasing quality of loans that it was buying, according to a statement of fact released along with the settlement. When an outside analyst wrote a positive report about Countrywide’s stock in April 2006, the head of due diligence at Goldman wrote in an email: “If they only knew.”
"Goldman then packaged these loans into bonds that were able to get the highest rating from credit rating agencies. The loans were sold to investors, who sustained losses when the loans went sour.
Over the course of 2006, Goldman employees took note of the decreasing quality of loans that it was buying, according to a statement of fact released along with the settlement. When an outside analyst wrote a positive report about Countrywide’s stock in April 2006, the head of due diligence at Goldman wrote in an email: “If they only knew.”
3
In fact this settlement requires no judicial finding or approval as there was never a proceeding initiated before a court. Accordingly, there was nothing for the reporter to mention on that front.
It's not a question of levels of cynicism, just the procedural posture of the matter.
It's not a question of levels of cynicism, just the procedural posture of the matter.
1
The real "legacy matter" is that none of these fat cats went to prison. And the upsized PR settlement amounts only pour salt on our wounds. Disgraceful.
4
Iceland has sentenced 26 bankers to a combined 74 years in prison. The latest to face charges are five top executives from two of the country’s largest banks.
How many corporate criminals and banksters who have destroyed our economy and thousands of lives been sentenced to jail?
What does this tell you about who really controls the United States?
How many corporate criminals and banksters who have destroyed our economy and thousands of lives been sentenced to jail?
What does this tell you about who really controls the United States?
9
Three words.
Break Goldman up.
Break Goldman up.
4
Kudos to former Senator Carl Levin for holding Hearings that finally exposed this king of unlawful activity!
OMG! Right? Big surprise, right? Wall Street wins yet again. "Justice" department? Only for the wealthy on Wall Street. Rewarded for crashing the economy and crushing the majority of Americans in too many ways. Same as it ever was, same as it ever was. Democrat, Republican bought by billionaires. Wealth for Wall Street, pennies for the poor. God bless America.
4
"If they only knew" how so few got away with taking advantage of so many. And then all the big banks spend the millions they saved and tax creditsw they negotiated to pay lobbiest to water down the Dodd Frank Financial Reform bill by successfully excluding derivatives and.... and..... and.... and....
I surely am not by brother's keeper, or my friends, or, my parents, or my neighbors, or, or, or, or, or........
The corrosive nature money and greed of Wall Street is the ingrained systemic risk; nothing more! I am sure GS and the other banks are also spending their tax credit savings to beef up their cyber security so there are no Wiki-leaks or Panamainian law firm type leaks of the other 'deals' and tactics they still employ to bolster their financial bottom line in the form of tax planning and fees.
I surely am not by brother's keeper, or my friends, or, my parents, or my neighbors, or, or, or, or, or........
The corrosive nature money and greed of Wall Street is the ingrained systemic risk; nothing more! I am sure GS and the other banks are also spending their tax credit savings to beef up their cyber security so there are no Wiki-leaks or Panamainian law firm type leaks of the other 'deals' and tactics they still employ to bolster their financial bottom line in the form of tax planning and fees.
3
The back story is all in the brilliant book by Michael Lewis "The Big Short ".
Time for a sequel, Michael - about how our Fed Govt enables all the shenanigans these firms are upto so they can buy and renovate their houses in the Hamptons.
I conduct business with a firm that does basically nothing but build and install beautiful cabinets, doors, trim work and furniture for not only the scions of these N.Y. City firms, but now the bond traders. Business is booming. On the Hamptons.
Time for a sequel, Michael - about how our Fed Govt enables all the shenanigans these firms are upto so they can buy and renovate their houses in the Hamptons.
I conduct business with a firm that does basically nothing but build and install beautiful cabinets, doors, trim work and furniture for not only the scions of these N.Y. City firms, but now the bond traders. Business is booming. On the Hamptons.
3
So anyone who tells you Big Banks did not engage in FRAUD and were not criminally responsible for the economic meltdown, ask them why GS paid $5 Billion for "wrongdoing." And in a just world with a Pres. whose US Atty. was not in bed with the financial industry "folks" would be going to jail.
But no, not in America where the rich and powerful are issued get out of jail cards. And now you know why GS paid Hillary $675,000 for secret speeches. Because if she is elected, GS will have unlimited get out of jail cards and an unlimited backstop of government bailout money.
And the extra $1 Billion they can shave off the "fine," gotta save some money to pay Blakenfein his bonus. The man who said we have to cut social security and medicare. What a disgrace. What a bunch of criminals.
Go Bernie.
But no, not in America where the rich and powerful are issued get out of jail cards. And now you know why GS paid Hillary $675,000 for secret speeches. Because if she is elected, GS will have unlimited get out of jail cards and an unlimited backstop of government bailout money.
And the extra $1 Billion they can shave off the "fine," gotta save some money to pay Blakenfein his bonus. The man who said we have to cut social security and medicare. What a disgrace. What a bunch of criminals.
Go Bernie.
10
word search the article for "prison' or "jail" and you come up zero. Yeah just the cost of doing business
2
where are the claw-backs of. the ill-gotten gains collected by goldman-sachs' management and shareholders? not to mention the bonuses awarded to their traders?
4
I'm Shocked ! Shocked !
1
My, my doesn't this just make you wonder what was in the speeches that Hillary gave to this group?
6
Did anyone in America think that the Federal government would actually instigate a fair settlement from Goldman? The inversion of power between government and the financial industry has been carefully enacted and is exposed in this "settlement". Goldman, and firms like it, can do no wrong in America today because they control the laws and legal mechanisms under which they work. The government has no recourse but to settle and move on.
7
I grew up with 'new' math. Is this the 'new' "new" math?
1
Turns out buying corrupt politicians is a very good investment, this country is a sewer of corrupt business and government working as one - fascism.
9
Heidi Cruz, Goldman Sachs “wealth manager” between 2005 and 2013, must have been aware of the fraudulently-labeled mortgage products intended for pension funds and the hoi polloi and presumably didn't offer this toxic junk to her wealthy clients. Given the faux piety of candidate Cruz, her possible complicity in this racket ought to be investigated.
11
What bunk. Most of those who lost big were trying to affect the American Dream or were socking away maximum permitted income earnings into pensions, 401s, 457s, and simple savings accounts. The people, the individual Moms, Dads, factory workers, individual teachers, clerks, sales personnel, bureaucrats, carpenters—that is, real people lost homes, jobs, retirement savings, cars, anything considered an asset. Real people. You. Your neighbor. Your boss. Your employee. The business you owned. They're the ones who lost and continue to lose. Wall Street should be required to make Americans whole again. With interest. Yeah. Right.
As it is, the banks get bailed out with a petite rap on the knuckles, Congress puts clean sheets on the bed it shares with the plutocracy, and it’s all called good. The American people got screwed and the rape continues unabated.
As it is, the banks get bailed out with a petite rap on the knuckles, Congress puts clean sheets on the bed it shares with the plutocracy, and it’s all called good. The American people got screwed and the rape continues unabated.
4
Liquidate Goldman Sachs and give the money to the victims. I know it's crazy, but it makes a whole lot more sense than allowing them to negotiate yet another great deal for their shareholders as "punishment."
Can you hear the champagne corks popping?
Can you hear the champagne corks popping?
2
You do not understand. The US taxpayers paid while the real estate industry and Wall Street got rich. The taxpayers are the real victims. But none of these penalties are reimbursing the taxpayers.
Mr. Donohue, I said "victims." It's a big group, but there's lots of Goldman Sachs to go around.
Millions of people were devastated by the financial crisis through no fault of their own. How does this settlement almost a decade late help make America, indeed the world, whole again? Compared to the amount needed to repair the damage, 5.1 billion is a trifling amount _regardless_ of how you slice it. What a meaningful figure needs is _more digits_.
3
Goldman just bought GE Capital Bank, and will be offering its services direct to consumers for the first time, as Goldman Sachs Bank.
In the past, as this settlement makes clear, they cheated and exploited their wealthy clients. Now we can all do business with them. My advice if you choose to do so: Read the fine print very carefully before you sign anything or click "I Agree "
In the past, as this settlement makes clear, they cheated and exploited their wealthy clients. Now we can all do business with them. My advice if you choose to do so: Read the fine print very carefully before you sign anything or click "I Agree "
3
Why all the surprise from commenters that no-one is going to jail?
As has been obvious for a number of years, except in a very few cases, the US government decided not to prosecute individuals for actions taken during the financial crisis. The reasons for this are sound. There were thousands of people involved in these events, all acting in a manner consistent with what at the time were standard business practices. It was a mass moral failure the fault for which lies with many, many people, including legislators and regulators. Who would be prosecuted, who would not? Justice could not be done
Like too big to fail, too many to prosecute.
As has been obvious for a number of years, except in a very few cases, the US government decided not to prosecute individuals for actions taken during the financial crisis. The reasons for this are sound. There were thousands of people involved in these events, all acting in a manner consistent with what at the time were standard business practices. It was a mass moral failure the fault for which lies with many, many people, including legislators and regulators. Who would be prosecuted, who would not? Justice could not be done
Like too big to fail, too many to prosecute.
1
Excuses, Excuses
I believe that were far more criminal prosecutions in the wake of the S&L Crisis. It does make you wonder what has changed at the Justice Department and in American justice since. Now, of course, there are far too criminal prosecutions. And those actions then tend to target mid-level traders. Settlements like this are simply the cost of doing business. Wrong-doing has been normalized. Maybe the Occupy protestors had more than a few things right: there has been a tilt toward the 1%.
1
No prosecutions of execs who did the crimes. Eric Holder being richly rewarded now, Loretta Lynch will be, as will their boss Obama. This is part of what Bernie Sanders is talking about & what HRC wants us to ignore as she dismisses Bernie.
7
Just imagine the future sweet deals Goldman and others will get with Prez Hillary. It's probably part of their long term planning for the 3rd Clinton administration. The power behind the throne.
2
Obama might as well be on the side of these mobsters of the banking industry. Time after time, bank after bank, he has as much as declared that criminal penalties - you know, like people going to jail - was unhealthy for the economy. So aside from Morgan Stanley and JPMorgan, you have Loretta Lynch literally slapping the wrist of probably the most dishonest bank in the world, HBC, with a fine worth a few months of he bank's profit. And so all of the people who lost homes, ruined marriages and left broke get no relief. The biggest financial disaster in American history outside the Great Depression remains a mystery that will probably never be resolved in the minds of the millions affected. So what must the government do? Why, grant enough loopholes in the settlements as to make them virtually worthless. Goldman Sachs once again laughs it all off and Obama gets his thriving economy. And not one ounce of justice. They are already at it again, with subprime mortgages making a valiant comeback. The rest of us? Well, I guess we aren't rich enough to understand that it's best for the country, don't you know.
My naive question is --- why does the govt have to negotiate deals and make concessions with these mega banks?
One word: Obama
This deal is exactly what Bernie Sanders was to fix. Hillary will bring the same ineffectiveness as Obama. What needs to be done is to ensure that these deals also provide for criminal prosecution of high level executives of these banks. Obama has prosecuted none to date. It's all smoke and mirrors until they start ending up in jail.
1
There will be no satisfaction, and no deterrent to future bad and destructive behavior, until cheaters on Wall Street are imprisoned for at least a few years apiece, rather than being able to "pay their way out of jail" by using stock owners' money in fines. To those whom much is given, much is expected. That includes our business elites. When they cheat and steal and victimize millions of the "little people," they undermine our country and the capitalist system, create enormous personal suffering, destroy thousands of lives, and should spend a significant part of their own remaining lives in jail. It's time to beef up the Justice Department with enough energetic prosecutors to bring these people (and their legions of hired gun defense attorneys) to heel.
The Clinton campaign is fashioning their response to this deal. So is Sanders. Will be fascinating. The whole campaign ultimately relates to this. The NY debate is coming up, then the primary. What timing.
But golly Paul Krugman said that it was just little shadow banks that caused the collapse while insisting that Bernie Sanders is too mean to banks and should drop out of the race!
5
No one at Goldman is indicted or looking at professional sanctions of any kind, while elsewhere in today's paper a CIA agent is being extradited to Italy to stand trial for her role in an operation carrying out US government policy at the time. Individuals everywhere else in society are held accountable, even in our intelligence services, unless they work on Wall St.
It's beyond 'corporations are people' - they are gods.
It's beyond 'corporations are people' - they are gods.
1
It only demonstrates once more that the US government is owned by Wall Street and normal citizens pay the bill.
4
What's 5 bil for Lord Blankfein & CO?
That's pocket change for them!
Why not revoke their licence to do biz and save humanity from this monster multi-headed hydra? What make the Feds think Goldman will ever stop their crooked ways?
It's their mantra
It's in their DNA
That's pocket change for them!
Why not revoke their licence to do biz and save humanity from this monster multi-headed hydra? What make the Feds think Goldman will ever stop their crooked ways?
It's their mantra
It's in their DNA
1
The type of wrong doing by Goldman Sachs was no different than the other banks. They all coerced the rating agencies to rate these mortgage backed securities AAA so that they could be sold to pension systems which are only allowed to invest in mortgages with a AAA rating. They stole billions and get fined pennies on the dollar! Meanwhile pensions and retirees still have not recovered and no one has gone to jail. They knew these were bad and so did the rating agencies. The piece mill dismantling of the Glass Steagall act by banking lobbyist created this and Washington is also to blame!
5
Again why is he NYTimes "pick" so at odds with the "Readers Pick"? The fundamental issues behind the crash were: 1) the ability of smaller banks to sell their mortgages and thus get more money to lend to people and so on, and soo on; 2) that any of these loans had teaser rates for 2 -4 years and then went bad when the full rates were charged; and 3) the 'sleeping dog" - all those confected derivatives that were abysmally rated by S&P etc and sold to charities, foreigners (who actually trusted the American finical system -- just ask the folks in Dusseldorf) and went bad when someone actually realized that Wall St didn't know or care what they were selling and that these derivatives were worthless when the underlying loans started to default. Surely, fraud, negigence, incompetence, or inaccurate disclosure there somewhere?
2
Goldman invented the term "financial engineering"
Translation:
1) invent new ways to loot,embezzle,cook the books.
2) Buy future wannabe president: give a political climber like Cruz one mil no-interest "loan" to run for Senate. Lavish money on a power/money hustler like HRC(they call it speaking fees).
3) Have your own tailors in Congress custom-made laws legalizing the syndicate. Tailor Schumer-Goldman's patron saint- is in line to be Senate majority leader.
Translation:
1) invent new ways to loot,embezzle,cook the books.
2) Buy future wannabe president: give a political climber like Cruz one mil no-interest "loan" to run for Senate. Lavish money on a power/money hustler like HRC(they call it speaking fees).
3) Have your own tailors in Congress custom-made laws legalizing the syndicate. Tailor Schumer-Goldman's patron saint- is in line to be Senate majority leader.
4
Gosh! What a coincidence! The 2016 presidential elections are ready to take place, and nearly 8 years after the Great Recession, one of Wall Street's biggest thieves throws a bone to the people. Timing is everything!!!
2
>>>>
More evidence as to the false advertising of optimism and hope.
Fine print is a major foundation of bourgeois economics.
"This guy wants to tell me we're living in a community? Don't make me laugh. I'm living in America, and in America you're on your own. America's not a country. It's just a business. Now [ ] pay me."
Jackie Cogan in Killing them Softly
More evidence as to the false advertising of optimism and hope.
Fine print is a major foundation of bourgeois economics.
"This guy wants to tell me we're living in a community? Don't make me laugh. I'm living in America, and in America you're on your own. America's not a country. It's just a business. Now [ ] pay me."
Jackie Cogan in Killing them Softly
Welcome to Goldman Sachs, formerly known as America.
4
Goldman Sachs is truly a bad company for America. Their financial tools just tax middle American families and municipalities worldwide to suck wealth out of them and transfer them to the 1%. The crooks running our Treasury during the great recession made sure Goldman was made whole in the AIG bailout, even tho American Middle class taxpayers footed an $80+ billion bailout. And it was outrageous Goldman Sachs financing that started the Greek mess. They are truly the root of much of the financial insanity in the world.
1
A perfect example of capitalist democracy in action as the moneyed interests so completely influence government and regulation that it is almost surprising any action against illegal behavior was even taken. Time to vote.
8
The problem with "Time to vote" is that in many states one has to join the sewer that is the Republican or Democratic parties in order to vote in many states; voting is rigged in a manner that you have to join them; there is no other way as Bernie is now trapped and it is hard to see how he changes anything.
I'm sick of the power of the banks and the cavalier attitude they display. For example in January the IRS notified me that I owed taxes from a cashed out 401k which I had in reality transferred into an ira in 2014. It turns out Huntington Bank had coded the transfer wrong but when the error was pointed out it took them in mid-January it took some three months for them to send the corrected form into the IRS even though because of them I was facing tax court. Their explanation was that their policy was to only send emergency mailings on as quarterly basis. If it's not their money they're in no big hurry even if they caused the problem.
1
Excuse me, but if a VW salesman pitches a used VW diesel as an amazing car and sells, does that make him a crook? What if he sells an entire fleet? Note, he can't do that with new or certified pre-owned, but can certainly do it for the rest.
The point being that, in the end, buyers are ultimately responsible for their lemons. Goldman's opinions on their products were (or should have been) largely irrelevant, otherwise Goldman would have demanded and received higher commissions. The fact that they didn't puts them off the hook. The settled fine, credits and all, which could be thought-of as cost of wiping bad PR, is appropriate. Would help if Goldman shared the fate of the inappropriate emailers with the public, but fair to assume they are no longer in Goldman's employ. Good job Justice.
The point being that, in the end, buyers are ultimately responsible for their lemons. Goldman's opinions on their products were (or should have been) largely irrelevant, otherwise Goldman would have demanded and received higher commissions. The fact that they didn't puts them off the hook. The settled fine, credits and all, which could be thought-of as cost of wiping bad PR, is appropriate. Would help if Goldman shared the fate of the inappropriate emailers with the public, but fair to assume they are no longer in Goldman's employ. Good job Justice.
1
Why fine these banks? Why not just revoke their business charters.
2
Wow. $1.5 billion off a $5 billion "settlement". And no one went to jail. I guess paying Ms. Clinton for those speeches really paid off.
Could someone write to my credit card company and ask them to give me a $1 in credit for every $1 of balance that I pay within 6 months of the due date? I'd really appreciate it.
And could someone else write the IRS (don't phone, they're busy) and ask them to allow me to deduct the cost of my next traffic ticket from my taxes, as the cost of doing business.
Ouch, ouch. My wrist is hurting from all those slaps.
Could someone write to my credit card company and ask them to give me a $1 in credit for every $1 of balance that I pay within 6 months of the due date? I'd really appreciate it.
And could someone else write the IRS (don't phone, they're busy) and ask them to allow me to deduct the cost of my next traffic ticket from my taxes, as the cost of doing business.
Ouch, ouch. My wrist is hurting from all those slaps.
5
No, no and no. Hundreds of thousands of people lost their homes, others saw their pensions and retirements decimated. This is not a penalty - it's an insider wink and nod. These folks should be doing hard prison time - chain gang style - instead they are being left untouched and tax payers will again pay for their excessive greed. If you need a reason to vote for Bernie Sanders, this alone is reason enough and worth your effort. None of the other candidates will ever seek justice against the likes of Goldman nor do they have the ethics and conviction to prevent this from happening in the first place, much less, doing what is necessary to prevent it from happening again.
1
If this were a fair presidential election, this story would bury Mrs. Clinton. But instead of that, it has been buried with hopes that it will not grow legs, as I used to say when I owned my own newspaper.
What a sad state of affairs; the cancer on the first amendment grows with each passing day. Only a win by Mr. Sanders will finally put an end to the slogan now circulating in the lower east end: "All's fair in love and on Wall Street".
What a sad state of affairs; the cancer on the first amendment grows with each passing day. Only a win by Mr. Sanders will finally put an end to the slogan now circulating in the lower east end: "All's fair in love and on Wall Street".
4
There is actually a silver lining here: " The bank agreed to a statement of facts outlining its wrongdoing." Tantamount to an admission of guilt, this "statement of facts" ought to make civil suits against the RICO Goldman Sachs easier to win.
1
Now I really want to know what Hillary Clinton said in those speeches she was paid hundreds of millions dollars for by Goldman Sachs, JP Morgan et al.
If she wants my vote release the transcripts now!
If she wants my vote release the transcripts now!
6
I try not to be bitter but I can't maintain my stoicism in the face of Goldman Sachs' free ride. They're the exemplar.
Lobbyists spread around lots of money in congress to literally buy those get-out-of-jail-free laws. Our biggest problem is that the banking laws were changed to make fraud legal - or to be more accurate - merely a cost of doing business. There is no personal or professional criminal risk to fraudulent behavior. Any smart MBA will game the system because the ROI is all to the upside, there is no downside risk to fraudulent practices unless you're the schlemazel.
In my past career, pre-recession layoff, I worked on high value litigation for SEC and IP cases in Federal courts. Pre -9/11 the SEC litigators were feared by C-suite execs. Now, nobody goes to prison and they pay minuscule fines 10 years after the fact.
I provided pro bono counseling to nearly 200 (now former) homeowners. I used my financial skills negotiating short sales, helping people avoid the worst case, foreclosure. No, only one of those had a Goldman Sachs loan, that was my own, as I had 805 credit score before I was laid off after an acquisition. The value of my home dropped by 35% the following year. Home equity for my kid's college was gone so he joined the military to fund his own college and served in Afghanistan defusing IEDs.
I agree with others that I want Hillary to address how we can fix Wall Street. She knows how to grab their short hairs - if she wants to do so.
Lobbyists spread around lots of money in congress to literally buy those get-out-of-jail-free laws. Our biggest problem is that the banking laws were changed to make fraud legal - or to be more accurate - merely a cost of doing business. There is no personal or professional criminal risk to fraudulent behavior. Any smart MBA will game the system because the ROI is all to the upside, there is no downside risk to fraudulent practices unless you're the schlemazel.
In my past career, pre-recession layoff, I worked on high value litigation for SEC and IP cases in Federal courts. Pre -9/11 the SEC litigators were feared by C-suite execs. Now, nobody goes to prison and they pay minuscule fines 10 years after the fact.
I provided pro bono counseling to nearly 200 (now former) homeowners. I used my financial skills negotiating short sales, helping people avoid the worst case, foreclosure. No, only one of those had a Goldman Sachs loan, that was my own, as I had 805 credit score before I was laid off after an acquisition. The value of my home dropped by 35% the following year. Home equity for my kid's college was gone so he joined the military to fund his own college and served in Afghanistan defusing IEDs.
I agree with others that I want Hillary to address how we can fix Wall Street. She knows how to grab their short hairs - if she wants to do so.
6
So they cheat, they rob, they cause a world economic melt down, and this is the punishment? This is not justice. But like the man wrote : "money does not corrupt people..." Democracy, Justice, what a bloody joke!
3
It's a choice between "Hey guys cut it out!" or Bernie Sanders. Vote for integrity on the 19th.
7
A bit of an inside of how bankers and politicians operate in the land of the free and home of the brave. Back in 2008, when Mr. Obama was running for office, he attended a fundraiser hosted by an ex GS chief, $ 30,000 per plate. The host was the finance chairman of the Democratic Party, when Mr. Obama became president, he showed his gratitude by appointing him Ambassador to Germany. How many more ex GS are or were part of this administration?? President Obama stroke a Faustian bargain with these fellows before being inaugurated. Chicanery but we called this democracy.
2
Clinton and Obama supporters should look into why these Banker-hoodlums have gotten away with no jail time. Obama and his cronies in the Justice Dept. have had this policy in place since 2010. Do the research yourselves, then look in the mrror and ask yourselves, "Why am I voting for Clinton and not for Sanders"? A "one issue" candidate you people say. Definitely not, but since now this issue has presented itself AGAIN, you people must have your heads in the sand or just agree with the way "Justice" for these people has be handed out. Shame on all of you!!! Hillary- you better denouce this agreement tomorrow, and insist that criminal prosecutions happen for these corporate slimebags, otherwise we'll know for sure you're in bed with them. Vote for Sanders. What more proof do you need , that he's the man for the job?
9
It is apparent that depending on where you are on the economic scale, buying your way out of criminal charges is now the American way (american capitalism), a bribe by any other name. Consider the net assets of GS are over 86 billion, they can easily afford the fleabite of 5 billion.
9
This is not just a deal between the Department of Justice and Goldman Sachs. And independent judge has to also sign off on it. Why is that not even mentioned in the article? There is not too subtle implication that the Justice and Goldman are conspiring to pull the wool over Americans' eyes. Doesn't that insult the intelligence of the independent court assigned to oversee the agreement between the government and a private company?
Is the judge simply too dumb to see what this reporter sees or too blind to read an article in the New York Times? If a reporter can figure all this out, shouldn't a judge also be able to? In fact, wouldn't the judge be obliged to consider this reporter's input if it was formally presented to the court in an amicus brief?
Maybe I'm not cynical enough for my own good.
Is the judge simply too dumb to see what this reporter sees or too blind to read an article in the New York Times? If a reporter can figure all this out, shouldn't a judge also be able to? In fact, wouldn't the judge be obliged to consider this reporter's input if it was formally presented to the court in an amicus brief?
Maybe I'm not cynical enough for my own good.
25
You are not.
1
Maybe these are not the kind of issues that the judge looks at when deciding to approve such deals.
Btw, it's a matter of having a healthy amount of skepticism not cynicism.
Btw, it's a matter of having a healthy amount of skepticism not cynicism.
Or... maybe the judge is as crooked as Goldman and our Justice Department.
1
Why are no individuals at Goldman going to be prosecuted for criminal activity .
Goldman is a company.
Goldman people did something wrong and should be prosecuted and sent to the clink.
Goldman is a company.
Goldman people did something wrong and should be prosecuted and sent to the clink.
67
Absolutely right. "Goldman Sachs" is not an individual who did wrong; it represents a group of individuals who made decisions to defraud their customers and profit from that fraud--who are these people, and why are they not going to jail? During the 80s S&L debacle, I understand that 200 individuals served jail time for their activities. Not a single Goldman Sachs, JPMorgan, or Morgan Stanley decisionmaker is under indictment. Why?
1
Isn't Ted Cruz's wife on leave from Goldman?
This is just one more blatant in your face fact that shows how the Obama administration is in the pockets of big money just like the Republicans. Better wake up voters and demand major changes from the candidates you support. Do you really think that someone who gets over half a million dollars to deliver a 60 minute speech to banking interests will do anything to stop this robbing of the average citizen? What can one possibly say in one hour that can be worth that much money? You are watching the final dissolution of democracy.
1
Who is going to reimburse the millions of American who lost jobs and income because of the crimes Wall Street sharpies cooked up? Who is going to house the millions who lost their homes? A measly 5 billion dollars in vigorish is spit in the eye of the American public.
65
Barney Frank and Hillary Clinton often retorted "where is the evidence?" when asked about big money questions with respect to the corruption in the US political system.
Here it is!
Here it is!
73
The governments job is to protect the elite from justice. Without government intervention the people would have found their own justice. So tired of white collar crime going unpunished.
77
Be like Iceland grow some gonads and let's put our petty issues and lets do this. That is what the elite want a distracted people fighting over scraps so they can rob them and we let them because Americans fall in to their trap all the time.
1
We need a corporate 'death penalty'. If we can have one in College Football for God's sake, we can have one for the corrupt evil organizations that destroy our economy. Corporate 'death penalty' = all C-level and boardmembers fired with no golden parachute. SEC appoints a board and CEO and runs the company for 6 months to 1 year while the corporate culture is retrained on morals and ethics. Then and only then are the stockholders allowed to pick another 1%er to run the place.
34
At least, for a refreshing change, we have a chance to vote those who represent the 1 % out this time.
Bernie 2016.
Bernie 2016.
57
Even Bill Maher has abandoned Bernie, given his commentaries from last Friday's night's show. He also said he had lunch with the President along with a bunch of other Hollywood "Elites". I wonder what the Prez offered him to support Hillary? A post as Cultural Ambassador to the Vatican, maybe? Corruption and sleaze infects even the most liberal of liberals.
1
From across the sea, close to where the developers of New Amsterdam lived, I will watch my fellow New Yorkers in telling the world what they know: that the "real" NewYorker lived the way many of us did growing up; that he exemplified the best of the hippie/anti-establishment crowd. He retreated to the fresh air and independent spirit of Vermont and rose through the ranks on his own: mayor, Congress, Senate. He has always acted with integrity; he has shunned the corruption rampant in his field. I have experienced the democratic socialism of western Europe for a decade now. Quality of life is always an issue; opportunities and safety nets converge into a system of less inequality and more respect for all citizens.Sanders has used his government service to advance ideas and the interests of all the millions without the access to lobbyists. Mrs Clinton has used her service and marriage to her own advancement and the inclusion into the 1%. People might forget that her husband first appeared on the cover of the Times years ago, standing on 57th St with Jerry Seinfeld at the building that would cost taxpayers $800K in rent; the Clinton move to Harlem was due to the outcry of the first choice. New Yorkers don't need a rep for the 1%. And, being the home state of VP nominee Geraldine Ferraro in 1984, New Yorkers know women like her - and like Bella Abzug = who made it on their own. Not on the coattails of a Democratic party. also anxious to please the 1%.
41
Is Goldman Sachs populated entirely by pre-programmed bots? Or, are there any real live human beings who set the deceptive and ruinous policies that cost so many investors their wealth? How come no actual people go to jail for Goldman Sachs' multi-billion dollar scams?
Goldman instead will get its tax deductions, its reductions in penalties, its p.r. for 'supporting' community investments and affordable housing. They'll come out smelling, mostly fine, and their business and investors won't suffer much at all.
This is not justice. Why did the Obama Administration do this again? Are they really, secretly, on Bernie's side? Helluva way to go.
Goldman instead will get its tax deductions, its reductions in penalties, its p.r. for 'supporting' community investments and affordable housing. They'll come out smelling, mostly fine, and their business and investors won't suffer much at all.
This is not justice. Why did the Obama Administration do this again? Are they really, secretly, on Bernie's side? Helluva way to go.
41
Because Obama like the Republicans before him hire ex or future Goldman Sachs employees to be our secretary of the treasury...
4
Someone has a foundation to fund and a library to build....not mentioning any names of course!
Yeah, let's put them all in clink—including all of the people who speculated on property, flipped it, and made a killing (or lost a lot because of their greed). It's not just the investment houses, or the banks, or the mortgage brokers. The whole American public (the self-deluding financiers included) thought they could get rich quick from the appreciation of property. Want to blame somebody? Go look in the mirror.
15
Those who speculated spent a lot of the money on their kids. Throw them in jail. And elderly parents often stayed in the flipped homes. So, throw them in jail. Dogs and cats got fat in these homes. Throw them in jail. And a lot of those who did the flipping played Justin Bieber on their stereos. Lord knows, he belongs in jail.
You are mistaken if you think the public are to blame. You need to research this as flipping houses had nothing to do with it!
they need to be in jail
This is sickening. And this is exactly why some people will write in Sanders or vote for Stein if Clinton is the nominee. There is no excuse or justification for allowing this type of behavior to continue. And does anyone doubt that it will?
32
I remember Senator Clinton sounding the alarm in a speech during the primary campaign season of 2008 about the need to address the subprime mortgage crisis before it blew up. Of course the press ignored the substance of what she said and just talked about polls and whether she cried in New Hampshire. And now commenters here are blaming her for what she spoke out to try to stop?
"When asked about these differences, the Justice Department official said that the wrongdoing that the banks were accused of was different and, as a result, the negotiations took different courses."
How nice to be able to 'negotiate' punishment for wrongdoing.
How nice to be able to 'negotiate' punishment for wrongdoing.
48
I can't tell if you are being naive or obtuse. If the government wanted to avoid any negotiations, they could have gone to trial instead. But that of course involves the risk of losing, and getting nothing.
It's very easy to criticize from your comfy perch at home, reading about it in the paper, never taking chances, or responsibility.
It's very easy to criticize from your comfy perch at home, reading about it in the paper, never taking chances, or responsibility.
5
Oh please! Goldman didn't tpwant to go to trial. If they did all the dirty laundry would come out. It's not that easy when a good portion of my taxes will make these settle the even less of a deters t to the rest of the banking world.
If the government wanted to actually punish the perpetrators, it could have brought (and should have) a criminal case. Remember the Savings and Loan Crisis? Enron? People actually went to jail.
1
GOLDMAN SACHS = THE 1% We are, yet again, confronted by the fact that the 1% live in a world where the rules that apply to the 99% are irrelevant. If, indeed, their dollar bottom line is 50 to 75% less than advertised, why has the government not insisted that the fines be paid in post-deduction dollars. Why are they not paying between approximately $7.5 and $10 billion? The math is very easy: The 1% does not equal the 99%. Still, we the people are going to have to put up with the chicanery and sham of the government deal, because the GOP obstructionists will do whatever it takes to downsize government and taxes for the 1% while leaving a heavier burden for the 99%.
30
And the Democrats are more than happy to assist them in their chicanery and sham.
1
GOP obstructionists? It is hard to see where this settlement is their fault. This is the M.O. of the Obama Administration post-financial crisis. You can like President Obama, which I certainly do, but if you are honest you can't deflect from his decision not to really punish anybody.
2
I wish it was just the GOP. Obama should have arrested all these criminals 7 years ago. Instead he hired Goldman Sachs to run the government and made excuses for letting them keep their ballot finances bonuses.
If Obama had done the right thing the real Tea Party people would have thought him a hero and the Koch brothers wouldn't have been sucks to hijack the Tea Party for their own purposes.
If Obama had done the right thing the real Tea Party people would have thought him a hero and the Koch brothers wouldn't have been sucks to hijack the Tea Party for their own purposes.
1
these cases have been negotiated by the Obama administration. It's hard to explain why the administration would give a free ride to the banks at the expense of the people. But if that's what's going on, Obama is selling out the 99% and is a hypocrite who champions the wealthy. That means his administration has been an economic sham, giving lip service to the poor while serving the rich. If that's the conclusion, as the Times suggests, Obama has promoted one of the worst economic agendas ever. I don't see it that way, but the Times apparently does and should stop pretending that they view Obama's economic policy as anything but evil.
22
They got him elected in 2008!
1
No one wants to believe it but Obama is a corporatist and always has been. This is his real legacy too big to fail and too rich and powerful to jail.
1
And you're just figuring this out now?
"It was what they offered."
Yes, how can we forget?
Yes, how can we forget?
28
We the people should demand stronger regulations to monitor the finance industry. We the people have suffered too much while Goldman Sachs and their ilk "maximize shareholder wealth" at the expense of the Middle Class.
22
Regulatory discretion doesn't work. That's why the banks must be limited in size. One way to do it would be to impose a limit in liabilities defined by a percentage of GDP. The 1% have so much power, even that might not work - look at how the SEC gives out waivers for what should have automatic penalties. The more complicated the plan, the more opportunity to exploit loopholes.
1
Ironic that affordable housing exists through government handouts so the people who live there can vote democrat.
2
It is highly offensive that Goldman released a statement referring to its illegal and fraudulent activity as "legacy matters." That phraseology suggests that somehow this is ancient history and something that Goldman passively inherited rather than actively pursued for years. Tell the family who lost their home, the retirees whose retirement savings were wiped out, and the American taxpayers who bailed out these wrongdoers that the wrongdoing and fraud of Goldman and other global financial entities is just some old trash that needed to be taken to the curb.
155
Maybe Mrs. Clinton will clarify why it is so in the upcoming debate? Hope so.
19
Any statement released by Goldman was agreed upon in advance by the Obama administration. That's how settlements work. So criticize Obama along with Goldman or pretend you're in lala land.
25
The republicans are no better just remind yourself under whose watch this was permitted to happen.
3
Hillary Clinton got $675,000 in speaking fees from Goldman Sachs sometime between 2013 and 2015, but has yet to divulge what she said to the bank. Reading this article in the context of her silence, one can only speculate.
That thought will go with me to the polling place next week here in New York.
That thought will go with me to the polling place next week here in New York.
109
If that's all she received, she didn't charge enough. They didn't ask Bernie, presumably because he's a Marxist, and those kind of people don't support capitalism. "Our people, our solidarity, our socialist democracy" worked really well in East Germany, as I recall.
3
Bernie a Marxist, please... He's center right!
1
WiltonTraveler, East Germany was not a socialist democracy, it was a communist country. It has been a united socialist country for greater than 20 years at this point in time, with a thriving economy, and a high standard of living.
2
But remember, all those tens of millions of dollars in political donations from Goldman Sachs have absolutely zero influence on our government. None whatsoever.
That's why nobody should be concerned that THIS EXACT COMPANY has been intimately tied to Hillary Clinton for the last 25 years. From Robert Rudin right on down the line.
That's why nobody should be concerned that THIS EXACT COMPANY has been intimately tied to Hillary Clinton for the last 25 years. From Robert Rudin right on down the line.
85
In addition to the settlement, how about putting some of the higher-ups in prison? Where they belong?
Now that would be an incentive not to rip off the American public!
Now that would be an incentive not to rip off the American public!
31
A penalty for a bank is much less than the grand announcement of a settlement (which also affords this bank the unearned privilege of continuing to claim they did nothing wrong) would make us believe.
Well I am just shocked.
And do I even need to ask, did anyone go to jail?
Trump and Sanders, anyone?
Well I am just shocked.
And do I even need to ask, did anyone go to jail?
Trump and Sanders, anyone?
20
'national working group that was set up in 2012 to investigate how Wall Street exacerbated the mortgage bubble and ensuing financial crisis.'
Odd to choose the word 'exacerbated' - more accurate would be 'created'.
Odd to choose the word 'exacerbated' - more accurate would be 'created'.
19
Unlike the shareholders of AIG the government didn't wipe out most of the equity for Goldman shareholders. Instead Goldman senior management got HUGE government funded bonuses by way fo stock options that went way up from the Fed Reserve funds pumped into Goldman.
Obama should really reconsider what his biggest mistake was. We the People didn't get our crumbling infrastructure repaired that would have created lots of jobs; underwater homeowners never got their mortgages reset as promised by the Big Banks & foreclosures using fraudulent documents were allowed to proceed on a wholesale basis. But Obama made sure the shareholders of the Big Banks kept their equity & their management got bonuses. Obama even insisted that no reforms be imposed upon the Financial Sector when they would have had to agree to any conditions asked just to survive
So Obama got what he wanted, the Tea Party, Radical Republicans & lost the House & Senate ergo no legislation after Obama gave us National RomneyCare in which anyone not willfully blind can see the horrible problems of a healthcare plan birthed in a Republican think tank-too large co-pays & deductibles so that insureds have "skin in the game"
So Thank you Obama for once again performing for Wall Street; you never delivered what you promised & could have delivered when you had a Democratic majority in Congress. Vast numbers of the Little People will continue to suffer from your sell out to Wall St long after you're gone
Obama should really reconsider what his biggest mistake was. We the People didn't get our crumbling infrastructure repaired that would have created lots of jobs; underwater homeowners never got their mortgages reset as promised by the Big Banks & foreclosures using fraudulent documents were allowed to proceed on a wholesale basis. But Obama made sure the shareholders of the Big Banks kept their equity & their management got bonuses. Obama even insisted that no reforms be imposed upon the Financial Sector when they would have had to agree to any conditions asked just to survive
So Obama got what he wanted, the Tea Party, Radical Republicans & lost the House & Senate ergo no legislation after Obama gave us National RomneyCare in which anyone not willfully blind can see the horrible problems of a healthcare plan birthed in a Republican think tank-too large co-pays & deductibles so that insureds have "skin in the game"
So Thank you Obama for once again performing for Wall Street; you never delivered what you promised & could have delivered when you had a Democratic majority in Congress. Vast numbers of the Little People will continue to suffer from your sell out to Wall St long after you're gone
72
You cannot pursue a criminal action against a company for something that is not legally a crime. That has been the problem since day one of the economic collapse: what these shadow bankers did was NOT illegal or criminal. It was gambling, it was stupid, it was risk taking with other people's money and only the extent of the actions make it anything out of the ordinary for the capitalist system. The Dodd-Frank Bill seeks to make illegal and criminalize at least some of these actions, and that is why Republicans are so anxious to weaken or get rid of it. Their bread is mostly buttered on the business side, not the worker side.
2
"If you're going to steal, steal big."
Al Capone.
Al Capone.
24
I thought at first you were quoting Lloyd Blankfein, the CEO of Goldman-Sachs. Then I read "Al Capone". Sometimes I get those two confused. Here's a quick way to separate them:
Lloyd Blankfein-New York-21st Century-Goldman Sachs
Al Capone-Chicago-20th Century-The Mob
Main difference: time and location.
Lloyd Blankfein-New York-21st Century-Goldman Sachs
Al Capone-Chicago-20th Century-The Mob
Main difference: time and location.
45
Both knew how to work the system. Except, one worked from outside and the other works from within.
1
Iceland put their bankers in JAIL! Why do ours get a slap on the hand, with a fine that will be passed on to investors and not touch any of them?
159
Why do we still ask why when we already know the answer?
THE SYSTEM IS RIGGED!!!
THE SYSTEM IS RIGGED!!!
13
The governments only purpose is to protect the wealth of the elite from commoners like us. Look through the veil, they don't care about you, and until we have MAJOR government reform they never will.
13
Once again the Government is bribed and the criminals face no jail and no forfeiture while the shareholders pay, the American people pay and the charade of equal justice before law cheapens and destroys societal values.
32
Remember this, back in 2010? "Goldman Sachs CEO Lloyd Blankfein told a Senate investigative committee that his firm did nothing wrong in the run-up to the financial collapse of 2008/"
http://www.politico.com/story/2010/04/goldman-brass-dont-blame-us-
Remember the huge pay increases Goldman executives took after nearly crashing the economy? Remember their snit when Obama made some mild statements about their behavior?
I wish they'd gone to jail, but at the very least, let's not get taken in again. Ever.
http://www.politico.com/story/2010/04/goldman-brass-dont-blame-us-
Remember the huge pay increases Goldman executives took after nearly crashing the economy? Remember their snit when Obama made some mild statements about their behavior?
I wish they'd gone to jail, but at the very least, let's not get taken in again. Ever.
30
And recently he also proclaimed that " Bernie Sanders is dangerous."
15
and yet again, the sleazy, thieving perpetrators are not named nor held accountable; and the 'settlement' is laughable pocket change compared to what was stolen/scammed. just more of that hope and change... and if you like that, be sure to vote for hillary. she'll be sure to hold them accountable -- recall that threat: 'hey, guys, cut it out'...
40
No licenses revoked? No jail sentences?? So much for the protections of the corporation for those who run them. Nice and cosy with the government. Where is the accountability? Where is the outrage? They system is totally rigged.
168
Friendly reminder that Goldman Sachs has been Hillary Clinton's No. 4 contributor over the course of her political career.
24
But Mrs. Clinton said in the debates that she told them to "cut it out". Yes, she did. And then she took the fee for her speech.
21
The Other Side, I think she may have said firstly, cut me in, big time, then cut me a check, and from here on out, cut it out, unless you cut me in, with increasing payment amounts.
1
I hope someone informed Mr. Krugman of these new developments for his next opinion analysis of how banks didn't really play a role in the financial crisis.
72
Somehow I'm sure he'll find a way to slam Bernie Sanders about this. To think I used to take Krugman seriously.
4
Maybe because I just watched Part One of PBS’ biography about Jackie Robinson, and then read this article: Without the overt racism and the outright violence of it all…seems more and more like we live in a 21st Century class and economic version of a Jim Crow South…with Goldman Sachs as one of the plantation owners. The “white” juries, i.e. regulatory agencies and the Justice Department, never convict the “owners” of much of anything.
Bad analogy, but I’m feeling more and more “disenfranchised” with articles like this.
Maybe that’s why, for the first time in my 65 years, I registered with a political party, the Democrats, so I could vote for Bernie Sanders next week in the primary.
Bad analogy, but I’m feeling more and more “disenfranchised” with articles like this.
Maybe that’s why, for the first time in my 65 years, I registered with a political party, the Democrats, so I could vote for Bernie Sanders next week in the primary.
29
There are millions more like you, Dave. Daily we thank our lucky stars for what little remains of real freedom in America. Oh, but for the state of this country, but it was well said before:
This too, will pass.
This too, will pass.
1
A enlightened thoughtful analogy.
DaveG. There are Democrats and then there are FDR Democrates. Voting for Sanders makes you a FDR kind. Good.
1
The problem here is the two parties (democrats and republicans) that supposedly represent the citizens of the USA. The parties work to take care of themselves and the gold ole boy networks that fund them. It's time for people to change their affiliation to independent and starve the parties of people and votes. Join in with the independents and lets vote for people that are not bought and paid for.
21
And where does HRC stand on this?
11
Where does HRC stand on this?
In line, at the bank, waiting to deposit yet another big fat check from Goldman Sachs.
In line, at the bank, waiting to deposit yet another big fat check from Goldman Sachs.
38
Considering how much money Goldman's executives and managers made off of the backs and livelihoods of ordinary Americans, $5 billion is chump change for them. Only extended jail sentences for their top management could possibly redeem them. But we know that's never going to happen, whether Democrats or Republicans are in charge. It's a Wall Street economy and a Wall Street government.
183
And don't forget that Goldman will write off most of the fine as a "business expense"--so the costs are thereby passed on to the public.
That is the America I know let the bankers go with just a slap on the wrist and then they crash it again and sucker the tax payers to bail them out once again. When are we going to learn or are we really that stupid of a nation. Iceland is putting Americans to shame because they throw their corrupt officials in jail unlike the fools in America.
26
It’s too bad the banks weren’t required to re-negotiate mortgage balances back in 2009, lowering payments for thousands of homeowners -- and in the process, keeping municipalities from bankruptcy due to massive foreclosures and loss of tax revenue.
Maybe the recession would only have been half as bad as it was. Instead, big fines paid years later disappear into bureaucratic coffers. Likely Goldman Sachs is asking, cash or check?
Maybe the recession would only have been half as bad as it was. Instead, big fines paid years later disappear into bureaucratic coffers. Likely Goldman Sachs is asking, cash or check?
9
Hey! C'mon now. Lloyd Blankfein said in 2009 that he was "doing God's work", and you know angels don't go to jail, for their ascension is always upward within the "virtuous cycle" where they do their 'good works'. That cycle, otherwise known as "the DC revolving door" allows Holder to send no one to jail and return to a swanky law firm, Jamie Dimon to receive bonuses and tell the Senate how to run the country, and Carly Fiorina to run a company into the ground and collect a coll $100 million. You see: angels do have wings even if they really haven't "earned" them.
The rest of you 47% bottom-feeders, who neither get to negotiate your under-water mortgages nor sue against the Ponzi-schemes that put you there to begin with, you can be happy that Hank Paulson quickly changed Goldman Sachs to a holding company (from being an investment bank) so suddenly---just after the crash. Hmmm....
Ah...the means of production. It ain't here anymore, and "capitalism" is such a 70s word. What you have is predator-financialization, where leveraged debt becomes the basis of all wealth creation. It doesn't matter whether that's mortgages, student loans or Social Security, for it's just one debt-sale after another with commissions and a red-carpet path towards the DC revolving door. Who says it does not pay to be a criminal?
For the young: If you're not cheating, you're not competing; if you can make money without working to EARN it, then do it, and unethical business is God's work.
The rest of you 47% bottom-feeders, who neither get to negotiate your under-water mortgages nor sue against the Ponzi-schemes that put you there to begin with, you can be happy that Hank Paulson quickly changed Goldman Sachs to a holding company (from being an investment bank) so suddenly---just after the crash. Hmmm....
Ah...the means of production. It ain't here anymore, and "capitalism" is such a 70s word. What you have is predator-financialization, where leveraged debt becomes the basis of all wealth creation. It doesn't matter whether that's mortgages, student loans or Social Security, for it's just one debt-sale after another with commissions and a red-carpet path towards the DC revolving door. Who says it does not pay to be a criminal?
For the young: If you're not cheating, you're not competing; if you can make money without working to EARN it, then do it, and unethical business is God's work.
16
Makes one wonder who the biggest perpetrator of malfeasance truly is, GS or the DOJ
15
I retired in October 1999.
I don't expect many to have much sympathy for me. I won't be homeless, and i (probably) won't survive on cat food.
But I played by the rules. I went to school. I spent far, far less than I made (and that really is the only way to acquire wealth). I saved enough to retire, and I planned to travel the world.
And I lost %40 of it all in 2008.
None of the people who had a good time on my dime will ever pay any price for their actions.
I expect they still travel well.
I don't expect many to have much sympathy for me. I won't be homeless, and i (probably) won't survive on cat food.
But I played by the rules. I went to school. I spent far, far less than I made (and that really is the only way to acquire wealth). I saved enough to retire, and I planned to travel the world.
And I lost %40 of it all in 2008.
None of the people who had a good time on my dime will ever pay any price for their actions.
I expect they still travel well.
52
I hope you didn't sell in 2008. The market has made a complete and total recovery. You should be telling us how much you enjoyed your world trip. No kidding, my portfolio has almost doubled. Those Wall Streeters really know how to save themselves.
And I'm still supporting Bernie 2016.
And I'm still supporting Bernie 2016.
1
This story which should be front and center, has been buried in PAC controlled fashion - just like the Washington Post - in the Business section.
You people are a growing disgrace to what used to be journalism. So, keep the entertainment on the front page, even if it is serious, by the time you put it there it becomes an an entertainment piece. But this is not where this story should be, and you know damn well I am correct!
You people are a growing disgrace to what used to be journalism. So, keep the entertainment on the front page, even if it is serious, by the time you put it there it becomes an an entertainment piece. But this is not where this story should be, and you know damn well I am correct!
22
so I get banned like the banks getting a free ride. someone needs to do time
5
This is typical of the Obama Administration's friendly attitude toward Wall Street. No criminal prosecutions of individuals, no fines for individuals (they keep their bonuses, including those paid with taxpayer money), and no real sanctions of corporations except the settlements, whose sizes seem always to be inflated and are generally covered easily from part of the profits made through the criminal wrong-doing. Regulators (e.g., Mary Jo White, chair of the SEC) are picked from candidates most friendly to Wall Street.
I assume we'll see the reasons for the gentle and even protective attitude toward Wall Street after Obama leaves office. Holder returned to Covington & Burling without having annoyed any potential clients, so that's a big win for him and the firm. Us, not so much.
I assume we'll see the reasons for the gentle and even protective attitude toward Wall Street after Obama leaves office. Holder returned to Covington & Burling without having annoyed any potential clients, so that's a big win for him and the firm. Us, not so much.
20
As a voter who does not support Bernie Sanders at this time (but will vote for him if he becomes the nominee of his newly adopted party), I must say that this settlement is a powerful argument for the Senator from Vermont. While the content of Hillary Clinton's speeches remains of little interest to me, the overarching concern is that Goldman Sachs has contributed mightily to politicians' campaigns and received a stunning return on that investment!
I wish a President could single-handedly change this obscene miscarriage of justice, but unless members of Congress are visited by Dickensian spirits in the night, I'm afraid the status quo will remain largely intact - too big to jail.
I wish a President could single-handedly change this obscene miscarriage of justice, but unless members of Congress are visited by Dickensian spirits in the night, I'm afraid the status quo will remain largely intact - too big to jail.
12
If Bernie is elected, he won't need Congress to change the banker's behavior. All he needs is an Attorney General who will actually enforce the laws and a Treasury Secretary who actually cares about the common treasure rather than Wall Street's treasure.
I am not impressed by the knee jerk criticism of this settlement. The popular conception is that the banks have gotten away with murder. Arguing that view is a no-lose proposition for a liberal newspaper. But it is dishonest. The settlements with the banks are unsatisfying and the Obama administration well knows that. But the lawyers who are negotiating for the government are the best in the business and they know that they are unlikely to win any of these cases at trial. A $5 billion settlement in a loser case is a remarkable accomplishment. Arguing that the government has kowtowed to the banks sells newspapers, but is false and misleading.
agree. michjas wins today's "The Emporer Has No Clothes Award."
2
the dirt should at least bee. exposed with names attached in a public trial. Goldman and it's management would have been publicly exposed as the untrustworthy entities that they are. Goldman (and the others) played tough to avoid that public exposure which would have been the end of some careers and possibly some of the TBTF institutions as well. there are rules, regulations, and laws which provide a reasons for people to place their trusting these. people and institutions. if the institution's can ignore those with impunity and the government won't enforce them with vigor then the financial system here is no different than Russia's kleptocracy.
Let's try this again. Meanwhile, some kid is sitting in a for profit prison for stealing a box of cookies.
16
Obscene. Like cameras on cops and court hearings, every word that transpired in these "negotiations" between the Goldman and government hucksters should be recorded and available for review and the Times or others need to commit to following the careers and connections of the government "negotiators." And where is the interest for the many years delay in settling and paying the ludicrous fine for an event that almost sank the economy?
93
These are just the kind of activities that say actually working for a living is so old fashioned. They indicate the government and the financial industry have everything rigged for them and against the rest of us. It is the basis of the anger of both the Trump and the Saunders supporters. I worry that if one charismatic person unites both groups, a revolution could occur with unpredictable results. The shortsightedness of the elites in business and government have lead to this. They must reverse their thinking before trouble occurs.
3
Nothing to see here folks, just move along...
This is one of the unfortunate legacies of the Obama Administration in general and the Dept of Justice specifically. Poor people who can't pay their traffic fines are locked up, while Wall St criminals slap each other on the back and say 'job well done'.
This is one of the unfortunate legacies of the Obama Administration in general and the Dept of Justice specifically. Poor people who can't pay their traffic fines are locked up, while Wall St criminals slap each other on the back and say 'job well done'.
104
Obama Administration legacy? What about the Bush under who's administration this scam started?
4
We should all be shocked, shocked by this article! Hugely profitable investment bank admits widespread wrongdoing and the result is . . . even more corporate tax credits. A perfect illustration of the logic of late-stage capitalism.
56
This sort of slimy business is why I would never vote for Clinton – birds of a feather really do flock together.
71
Goldman Sachs is at the very epicenter of evil and greed in the United States. The financed Obama and Hillary as well as many Republicans; they caused the financial criis of 2008 that robbed many ordinary Americans of their life savings. And did any of these Money Changers go to jail? Nope. Obama is no Jesus; he did not kick over the money lenders tables. He could have nationalized the banks and quickly restructured the currupt system, but he instead, overly impressed with Harvard bankers et al, turned around, pulled his panties down, and bent over for history. This bank is truly evil.
12
"And that is before the tax benefits of the deal are included."
Amazing that they could even reap tax benefits after being fined ONLY $5.1 billion to settle accusations of wrongdoing!
Amazing that they could even reap tax benefits after being fined ONLY $5.1 billion to settle accusations of wrongdoing!
21
This one of the main reasons why Sanders is so popular with young and independent voters. The oldsters just don't care it seems, as long as their pensions are protected and investments looked after, why should they care? Well, they should. As for the women supporting Clinton, you obviously don't care, as long as a woman gets to be president, it doesn't matter if she sold her soul to these Wall St. hoodlums. Caring about integrity doesn't come into their minds- only greed and selfishness does. Being of like mind- Wall Street, Clinton, and most of her supporters.
12
What happened to the guy who was allowed to pick the mortgages bundled by Goldman and sold to their investors (who then bet that the bundled mortgages would default)?
28
I'm a third generation Democrat and have never voted otherwise. But the failure of this Democratic administration to address the problems of the big banks, while at the same time proposing to eliminate 529 College Savings Plans, begin taxing Roth IRAs, and proposing caps on other retirement savings vehicles, really gives me pause. AFTER the big banks have been held accountable, and AFTER corporate America pays their fair share, THEN consider proposing elimination of savings vehicles used by the upper middle class who must work and save in order to invest. Throwing worker-savers under the bus while Wall Street gets off easy is a really bad legacy.
37
Back in 2010 Obama's Justice Dept. decided that these Wall St. crooks were not the types of people who deserved jail, only fines for their companies. Seems throwing out millions to his campaign and other pols campaigns reaps huge rewards, as we have been seeing these last few years. And the major dailies are supporting the status quo candidate- Hillary Clinton? Something stinks to high heaven... Maybe because they too have stocks listed on Wall ST. They belong to the same club.
20
There you have it, Obama's democracy. Who cares about the crime as long as the government gets to reap the $$$.
9
Instead of settling, has the Department of Justice ever tried the case against any of these TBTF banks? The whole thing is travesty of justice.
40
And we wonder why Goldman gave over a million to Hillary for speaking? How dumb must we be?
70
Goldman gets a billion dollar tax write-off, and nobody (i.e., no individual) gets fired, fined or goes to jail. Why wouldn't they do it again? Oh, yeah. They already are.
And everybody speculates about the rising level of public discontent.
Maybe when Eric Holder and Lanny Breuer write their memoirs, we'll find out how we ended up here. The explanation won't be good enough.
And everybody speculates about the rising level of public discontent.
Maybe when Eric Holder and Lanny Breuer write their memoirs, we'll find out how we ended up here. The explanation won't be good enough.
120
Explanation: corner offices, big checks ; funded foundations and library's....
All hail the oligarchs and their hand maidens ....( nongender specific meaning of course).
All hail the oligarchs and their hand maidens ....( nongender specific meaning of course).
2
And that's why you shouldn't vote for anyone currently holding an elected office and running for reelection. They are all culpable in this fraud on the American people.
2
Blankfein belongs in jail.
1
Goldman and the other big players didn't just "worsen the mortgage bubble"; their mortgage and accounting frauds were at the center of the largest and most damaging crime wave in the history of the world. Now, of course, it's all being swept under the rug with slaps on the wrist that can just be passed on to customers, as the losses of the banks are made good with trillions of dollars in "quantitative easing" payoffs which the banks, with Fed encouragement, can just re-deposit into the Fed to earn interest from the government on its own money.
The banking frauds are the story of the century, and the NYT is ideally positioned to aggressively pursue it. But instead of calling it what it is and aggressively pursuing it, the NYT meekly glosses over the crimes while occasionally throwing out small bones like this piece. This can't go on forever, folks - Hillary's likely to be the last Wall Street Democrat to get elected.
The banking frauds are the story of the century, and the NYT is ideally positioned to aggressively pursue it. But instead of calling it what it is and aggressively pursuing it, the NYT meekly glosses over the crimes while occasionally throwing out small bones like this piece. This can't go on forever, folks - Hillary's likely to be the last Wall Street Democrat to get elected.
68
There really is only one viable solution to the ongoing corruption on Wall Street and in Washington.
Bernie Sanders for President.
Bernie Sanders for President.
164
I'm confused, since when does the party being penalized get to negotiate their penalty?
136
Well, ever since the parties began paying people like Hillary millions of dollars for lunch hour speeches, they are treated as equals instead of the criminals that they are. Meanwhile, some poor kid is serving time in a for profit prison for stealing a box of cookies.
53
When the federal negotiators are, in actuality, interviewing and auditioning for a big bucks job with Goldman, et. al. or a law firm that services them.
12
Aaron: Negotiation is possible when the CEO of a bank, in this case Lloyd Blankfine of Goldman Sachs, is doing, as he personally described it, "God's work". He just neglected to mention that the "God's work" he is so expert at is in the realm of Disease and Pestilence . In keeping with the Justice Department's tradition, established over the six (6) year term by President Obama's devoted and honored former Attorney General, Eric Holder, "Nobody Goes To Jail". Even after those Wall St. rascals destroyed our nations economy and that of the world while earning multi-billions $$$$$ for themselves . I think the adage is; "Money talks".
13
And as always, no one goes to jail for this crime.
114
So here is the math in the end:
10 billion per year for 15 years minus 5 billion.
I need to start being more unethical, it pays.
10 billion per year for 15 years minus 5 billion.
I need to start being more unethical, it pays.
50
I didn't get Obamacare and I have to pay the fine again. If I hand out kleenex to sneezers I pass on the street can I get 50 to 75% off my fine?
23
No, just get Obamacare this time.
1
Good analogy. That's something you can do with carbon credits--Al Gore can consume a gazillion kilowatts, plant some trees in South America and--voila--he's suddenly "carbon neutral."
1
That is going to be the first thing I do when I finish paying off my student loan in 2037. I had to choose between defaulting on the loan or paying a $5000 premium PLUS a $6000 deductible. Maybe the Fed can loan students money at 0.75% like the banks. Maybe then something good can come out of all the peace love and understanding the DOJ threw Goldman's way. Not asking for a handout; just a hand.
2
And the rationale is?
If duped mortgage holders get concessions on mortgages it is impossible for them to actually pay off or stay current on, then the bankers who duped them should get a concession on their penalties too?
Fair!
It's the "American Way!"
I feel especially proud today!
Thank you Goldman! Thank you so aptly named "Justice Department!"
If duped mortgage holders get concessions on mortgages it is impossible for them to actually pay off or stay current on, then the bankers who duped them should get a concession on their penalties too?
Fair!
It's the "American Way!"
I feel especially proud today!
Thank you Goldman! Thank you so aptly named "Justice Department!"
18
Let Goldman keep the money and put a few dozen executives in jail. Real jail, not country club jail.
The monetary amount is absolutely meaningless. This ongoing financial rape of the American public will continue until individuals are punished.
The monetary amount is absolutely meaningless. This ongoing financial rape of the American public will continue until individuals are punished.
216
Obama' Justice Dept years ago decided that none of these "Types" of people deserve jail time. As long as people pay off the government, they could be mass murders and still be considered "not the type" that desrves jail. It's only reserved for the poor and middle class.
18
Mr. Foster: A novel but excellent idea. Why haven't our Attorneys General with all of their bright, Ivy League lawyers thought of this ? Your idea actually has it's origin in the historical adage; "Spare the rod and spoil the child ." Maybe they don't teach adages at Harvard, Yale, etc.!!?? And, just think of the hundreds of millions of dollars we would have saved by not building the humongous number of prisons that house our 2,000,000 convicts . We could have just fined them and let them go just like Banksters . Of course possession of an once of marijuana is a very serious offense . But, you know - - - - .
2
Better yet make them pay the full penalty with one discounts or credits and no tax write offs and also put the executives in jail no less than they would do the average individual who embezzled money from their clients or company.
Then like felons on probation disallow the donate money to political campaigns for 6-7 years.
Make the really, really hurt so they don't drea, of doing this again.
The only way to
Then like felons on probation disallow the donate money to political campaigns for 6-7 years.
Make the really, really hurt so they don't drea, of doing this again.
The only way to
1
Massive fraud and only fines easily absorbed and partly written off taxes. Same with BOA, Chase, etc. This is one of key parts of the Obama "legacy" I do NOT want continued and exactly why I will vote for Sanders next Tuesday. Secretary Clinton made 3 speeches for Goldman Sachs and earned over $600.000 my guess is that they can write that off their taxes too as it is certainly a business expense to buy her favor.
191
@Jessica- you're not voting for her i hope? But i bet your lady friends all are.
1
Actually Lou i guess I am an anomaly as most of my 'lady friends" including my mom are voting for Sanders and we sure are not young. We are mystified about why so many women are taken in by her. I actually voted already down at the BOE office in Manhattan as I am unable to got to polls next week.
8
Jessica, Bernie Sanders is one man against a Congress dominated by Republican legislators, none of whom care a wit about those without money and all of whom are in safely gerrymandered districts. The problem of unequal punishment goes to the heart of economic crimes: they simply aren't considered jailable offenses. Most of the time the unethical behavior that is the root of the problem is also the source of the energy that propels people in Wall Street, i.e. in capitalism. Until unethical behavior in monetary actions is a jailable, unlawful offense fines are likely to be the preferred punishment and discounts will be the norm. Such discounts point out BTW who has the real, relative power.
What a surprise.
No one has gone to jail.
Tens of thousands lost the homes.
The rich just gt richer.
Goldman has a slightly lower bottom line.
We have two candidates running for president who have not taken corporate and wall street money. Both are in line to be the victims of voter suppression by their respective political parties. Not a coincidence.
No one has gone to jail.
Tens of thousands lost the homes.
The rich just gt richer.
Goldman has a slightly lower bottom line.
We have two candidates running for president who have not taken corporate and wall street money. Both are in line to be the victims of voter suppression by their respective political parties. Not a coincidence.
103
So, in the end, just the cost of doing business and evidently the cost was worth the while for Goldman Sachs.
155
don't be surprised when once out of office, either obama ends up as members of the boards of directors at one or more of these banks. keep an eye on those coming appointments. i'm sure there will be a small, community foundation thrown in for the distraction...
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Hey it worked out nicely for Eric Holder, why not Obama!!
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