Goldman Sachs Scammed Investors

goldman sachs

Investment firm Goldman Sachs is once again in the spotlight after the Securities and Exchange Commission has filed suit against Fabrice Tourre, the giant’s vice president, and the firm itself for apparently defrauding investors. The firm forged a $15 million dollar deal with Paulson & Co, a hedge fund which cherry picked securities backed by subprime loans which were due to plummet with the impending mortgage crisis and marketed them to clients. In the mean time, the hedge fund invested in credit default swaps, which would have allowed the firm to collect when the subprime borrowers defaulted on their loans. The hedge fund manager behind this entire scheme is estimated to have earned $1 billion after the subprime crisis went into full swing. The extent of deception and corruption in this story is truly remarkable, and we can only hope that the responsible persons will be held liable to the full extent of the law. This scheme that was spearheaded by Sachs is believed to have expedited the downward spiral of the economy.

Goldman Sachs, once considered a “too big to fail” institution was bailed out by taxpayers in 2008 at a total cost of over $12 billion. The firm received some backlash after issuing $14 billion worth of bonuses to executives a short time thereafter. It has since repaid the bailout money back to taxpayers.

One thought on “Goldman Sachs Scammed Investors

  1. Ryouta

    folks,I think Obama is competing with Republi$$K$$ans for ctraorpoe sponsorship-why he won’t bring government to DO transparency, oversight, accountability..he also might not survive it, should he attempt to do so. There’s quite a legacy of those on the left finding themselves assassinated. Even Malcolm lived through it all, TILL he tried to bring the plight of the poor before the U.N.-was turned back from Paris airport-not allowed into France for meeting with African leaders.People should be aware of the FACT that Goldman-Sachs and other investment banks SPECULATING (driving markets) quadrupled the price of rice during Bushit, causing famine.Here’s how the game is played; in July, 2004, Gretchen Morgenson’s Sunday NY TIMES article showed that Goldman-Sachsowned-controlled 13.8% of total worldwide energy-gas futures markets. Other investment banks controlled less, but in total, all of them controlled over 35%. Remember November 2004 was Bushit 2nd term election cycle. Goldman in July SOLDOFF 1/3 of their energy futures. Other investment banks blinked, as what they had been doing was SELLING ENERGY FUTURES back and forth TO ONE ANOTHER, to artificially DRIVE PRICES..each time there was a transaction, prices went UP. Goldman stated they were going to buy back in, in blended fuels such as biodiesel..BUT instead, in August they sold off another 1/3 of their holdings. Well, the monopoly-speculationgame had been going so well, as people likely remember, the price of gas had gone up to $4.00. When Goldman sold off another 1/3, everyone else panicked and sold off their energyfutures. The price of gas came down to under $3.00 a gallon just in time for Bushit reelections Investment banks are NOT END USERS of energy futures, rice, wheat. THEREFORE THEY ARE SPECULATORS. An end user of energy futures would be an airline, assuring themselves of fuel prices so they can set seat prices.Note that leading to this year’s mid-term elections, gas prices are once again above $3.00 a gallon (where we live) Note also that too big to fail banks DOING ALL THIS are even bigger, having gotten rid of some of their competition.Geisst’s book, Wall Street-A History documents the historyof SPECULATORS driving-monopolizing markets in exactly this way..which is how we have gone from FDR’s New Deal back to the Republi$$K$$an-corporate Old Deal that’s where we are, folks..

Leave a Reply