Thursday, June 2, 2011

Goldman Sachs gets subpoenaed again

Goldman Sachs Group, which made billions of dollars as the worldwide economy was crashing down in 2008, was subpoenaed by Manhattan District Attorney Cyrus Vance, who is seeking information on the investment bank's role leading into the global financial crisis.
The subpoena is the latest blow for the largest U.S. investment bank, which is reinventing itself as new U.S. financial regulations cut into some of its key businesses (i.e. fraudvestments).
The Department of Justice is also allegedly investigating Goldman Sachs over its involvement in the foreclosure crisis as well.
In both cases, prosecutors are seeking to learn more about documents unearthed by a U.S. Senate subcommittee report about Wall Street's role in the housing market collapse. The Manhattan D.A. is not seeking new documents, the source said.

The subcommittee report said that Goldman offloaded much of its subprime mortgage exposure to unsuspecting clients in late 2006 and 2007 as the market was starting to fall sharply. In some cases, the bank dragged its heels when clients wanted to close out their losing positions, according to the report.

The U.S. government is broadly investigating banks' actions in the years leading up to the financial crisis to determine whether executives' misdeeds made the meltdown worse.

One of the first big cases as part of the government's broad investigations was the Securities and Exchange Commission's civil fraud suit against Goldman last year over the bank's failure to disclose information linked to a complex mortgage security.

Goldman settled those charges in July without admitting or denying charges, but it did express regret for failing to disclose information.

There's a huge difference between getting a subpoena and actually being charged, let alone convicted of anything, but nonetheless, the hassle that these bankstas have to go through is very amusing.
This news, coming closely on the heels of word that Goldman Sachs managed to "lose" almost $1.3 billion of Muammar Gaddafi's money, does signify that there are sharks circling in the water. It's not exactly an air raid by NATO attack helicopters, but more like high level defections to the Libyan resistance, whom we recently learned are "the Al Qaeda."