LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Battle for Control of Gold - video
By: Gary Savage

The US Economy: All Roads Lead To Gold
By: Stewart Thomson, Graceland Updates

Precious Metals Update Video: Gold is in a bounce
By: Ira Epstein

Plethora of Potential Crisis Triggers
By: Jim Willie, CB

Miners Are Facing Challenges Globally
By: Frank Holmes, US Funds

Repocalypse: The Little Crisis that Roared
By: David Haggith

The Perversity of Negative Interest
By: Keith Weiner, Monetary Metals

Cracks Spread in the Bullion Banks’ Price Management System
By: Clint Siegner

Precious Metals Update Video: Gold nearing a technical resistance test
By: Ira Epstein

Silver Equities Outperforming Year-to-Date
By: Ed Steer

 
Search

GoldSeek Web

 
Goldman Suit Exposes Big Banks to Firestorm

By: Rick Ackerman, Rick's Picks


-- Posted Wednesday, 21 April 2010 | Digg This ArticleDigg It! | | Source: GoldSeek.com

Rick’s Picks

Wednesday, April 21, 2010

“Phenomenally accurate forecasts”

  

Now we learn that the SEC split 3-2 over whether to go after Goldman Sachs in court. Supposedly, the regulatory agency prefers unanimous votes when bringing enforcement actions against the firms it regulates. Why the exception this time?  The Wall Street Journal made it sound like it was simply partisan politics that carried the day – i.e., the SEC’s two Republicans voted against suing Goldman for civil fraud, but the three Democrats prevailed. That is superficially what happened, and it is as much of the story as the SEC is willing to divulge right now. But it’s bound to leave many observers, particularly Obama-ites in Congress who are out to pillory the bankers, with the impression that the two Republicans were merely looking out for their fat-cat buddies on Wall Street. This thought occurred to us as well, so we’d have to concede it is at least possible.

 

But might there have been another reason why the Republicans backed away from bringing formal charges against Goldman?  We think there is and that it goes to the heart of the corruption in which the world’s largest banks have inextricably trapped themselves. For if you assert in a of court law that Goldman defrauded its customers, you have implicated every bank in the big leagues. Enabled by their respective central banks, they all – even the ones run by otherwise spotless Swiss Burghers -- play the same Ponzi game. Moreover, regardless of whether the charges brought against Goldman are civil or criminal, they will open the door to an endless flood of litigation with the potential to bring down the entire banking system.  From this point forward, Goldman will be fair game for every aggrieved city, county, state, sovereign fund and class of investor they have done business with for the last decade.  The same goes for Bank of America, J.P. Morgan, Morgan Stanley, Deutsche Bank et al.

 

Lynch Mob

 

So it’s just possible the Republicans put politics aside when they voted, in effect, to quietly sanction Goldman behind the scenes. It must also have occurred to them that it would ultimately be impossible to mask the overwhelming stench of Goldman’s actions. The firm, after all, did sell an investment to the public that had secretly been created by someone betting on the portfolio to fail. There is no way Goldman can talk its way out of this, although that hasn’t stopped CEO Lloyd Blankfein from trying. With Goldman reporting a spectacular $3.4 billion quarter yesterday, he might as well be trying to explain to a lynch mob that he has never, ever kicked his cat and that he always helps little old ladies cross the street.

 

Some see the charge of civil, as opposed to criminal, fraud as reflecting a compromise engineered by Mr. Obama to help expedite his takeover of the financial sector. “He stirs up the masses with yet another example of Wall Street greed and fraud,” wrote one contributor to the Rick’s Picks forum, “but offers nothing more than what amounts to a fine to his friends at Goldman. We all know how deep their pockets are. They are quietly happy that this is the extent of the fallout.” While this seems plausible, it doesn’t reckon with the fact that just one civil suit could conceivably put the world’s largest banks in mortal jeopardy for years to come.  Indeed, if they should somehow dodge the bullet, it would be evidence that the corruption that permeates the banking system has engulfed our judicial and political systems as well.

 

***

 

Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. There is a substantial risk of loss in futures and option trading, and even experts can, and sometimes do, lose their proverbial shirts.  Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2009, Rick Ackerman. All Rights Reserved. www.rickackerman.com 


-- Posted Wednesday, 21 April 2010 | Digg This Article | Source: GoldSeek.com




 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.