How Goldman pulled off the FRAUD

 

How Goldman pulled off the FRAUD

Most honest people do not lie.  In the past US law required those selling investments to tell the truth when they market securities to others.  It was against the law for Wall Street firms to LIE on investment prospectuses and when presenting investments to clients.  This all changed under Bush, Greenspan, and Bernanke, Paulson (the crook from Goldman), Geithner and others who felt government regulation of the market was evil.  This was mostly driven by right-wing nut-job Republicans, but Democrats went along.

The Securities and Exchange Commission (S.E.C.) is chartered with making sure Wall Street doesn’t lie about securities they sell.  The SEC just filed a “civil complaint” against Goldman Sachs for fraud. 

The charge is they along with one of their largest clients, Abacus, a huge hedge fund, packaged up what they knew were very bad loans, loans that were sure to fail driving down the value of the securities and making them worthless.

The hedge fund worked with Goldman to select these “bad loans” and then Goldman sold the securities containing the loans making millions in fees.

The hedge fund bought “credit swaps” insurance against the securities they knew were bad and would fail.  When the securities failed the hedge fund made $12 billion in profit.

Now the Tea Baggers and other nut-jobs say this is okay and that no government agency should be involved in saying the Wall Street ahs to tell the truth when they sell investments.

In simple terms Goldman helped a client pick bad loans, Goldman then sold them as good investments to pension funds and other making millions in fees and then Goldman sold the client that picked the bad loans insurance on the loans going bad.  Goldman also made millions selling the credit swaps.

This swindle is just one of the crooked deals Wall Street put together over the Bush years while regulators watched and did nothing.  It is fraud for a Wall Street bank, Goldman or any other bank, to sell securities they know are risky and not tell investors about the known risk.  In this case it is far worse because Goldman helped make sure the investment would fail by picking high risk loans.

 Matthew 22:39 

 

39"The second is like it, YOU SHALL LOVE YOUR NEIGHBOR AS YOURSELF.'

40" On these two commandments depend the whole Law and the Prophets."

Mark 10:19 

19"You know the commandments, DO NOT MURDER, DO NOT COMMIT ADULTERY, DO NOT STEAL, DO NOT BEAR FALSE WITNESS, Do not defraud, HONOR YOUR FATHER AND MOTHER.'"

Matthew 7:12 GOLDEN RULE -

12 “Therefore all things whatsoever ye would that men should do to you, do ye even so to them: for this is the law and the prophets.”

John 14:15 “If ye love me keep my commandments.”

If you ask the people at Goldman if they wanted an investment broker to withhold information about known risk when they purchased an investment they would say no.

If you asked the owner of Abacus, John Paulson, if he wanted to be treated like he treated others, he too would say no.

The above story proves several things.

1.    People in business will lie to make money

2.    People in government must enforce the laws against fraud

3.    Goldman will get off with a small fine after forcing the SEC to spend tens of millions in taxpayer money in court

4.    The other crook, John Paulson, who made $1 billion for himself will get away free and clear

That is what Bush and the Republicans brought us and what the Tea Party wants to go back to without any government regulation.