Senate Probes Goldman, Deutsche Bank For Mortgage Meltdown Fraud

Wall Street Journal:

WASHINGTON -- A Senate panel has subpoenaed financial institutions, including Goldman Sachs Group Inc. and Deutsche Bank AG, seeking evidence of fraud in last year's mortgage-market meltdown, according to people familiar with the situation.

Read the whole story: Wall Street Journal

Comments

[PhilipTaylor]

12:08 AM on 07/31/2009

Prosecute G0LDMAN and the other 5 LARGEST WALL STREET BANKS:

1. Misrepresentation of High Risk Products as Low Risk "AAA" -selling them all over the World

2. Manufactured Insider Trading - Far more manipulative than Chef Martha!

3. RE St0len G0LDMAN Software: "Bank (GS) has raised possibility there is danger somebody who knew this program could use it to manipulate markets in unfair ways." Isn't this the MOST AM@ZING ADM1SS1ON in a c0urt of l@w?

4. Another Automated Scheme intercepts real time order messages and insert GS Trades ahead of others trades at lower price so they can capture the BOUNCE from a Big TRADE. IT'S Automatic+ILLEGAL!

Laws on books - LACKING IS AN HONEST ADMINISTRATION TO PROSECUTE!

Misrepresentation is a contract law concept. It means a false statement of fact made by one party to another party, which has the effect of inducing that party into the contract. For example, under certain circumstances, false statements or promises made by a seller of goods regarding the quality or nature of the product that the seller has may constitute misrepresentation.

Insider trading is trading of securities by individuals with potential access to non-public information about the product/company. Taking advantage of non-public information by an insider obtained during performance of insider's duties at the corporation, or otherwise in breach of a fiduciary duty or other relationship of trust/confidence or where non-public information was misappropriated from the company.

[themodernleader]

09:21 PM on 07/30/2009

Wipatriot. Your solution is the obvious solution. As a wise friend keeps reminding me, donations to campaign by lobbyists are actually bribes, that is, payment for benefical favors or laws. Harry Truman commonly said that he spoke for the ordinary people: The previleged and well connected people had plenty of money and clout to take care of themselves. We haven't had a President any where smilliar to him since. Eisenhower, Kennedy and Johnson preserved most of what Truman and FDR put into policy and procedure which was our Golden Age of the common man.

[jazzman]

12:48 PM on 07/30/2009

They'll investigate and then nothing will happen.

[Rule Of Law]

06:07 PM on 07/30/2009

Well, they're just enough afraid of Something happening that they continue to build the FEMA detention sites all around the country. Was some speculation on the news yesterday about possible food riots in the developing world where the price of food soared last year and never came back down. They hinted that that might happen here. I think the newly homeless foreclosure victims will be in the streets before that, but just imho. But Obama has yet to repeal the 2006 act that allows the president to take control of all military and police in the country and use them as he wishes in time of emergency, in violation of the Posse Comitatus act that has protected us from the military since 1887. Between that law and the prisons, they seem convinced that at some time they will use them.

[swisskabab]

12:12 PM on 07/30/2009

Why is it that Congress has not thrown even one single Wall St. crook in jail?

All we heare is that Congress is "eyeing"/"contemplating"/"considering"/"talking about" laws against these Wall St. crooks. HOW ABOUT THROWING A FEW ROTTEN APPLES IN JAIL ?

[OldHick]

12:32 PM on 07/30/2009

There is some confusion over what had happened. My guess is that the Chinese persuaded bankers and politicians, to extend inordinate amounts of money to China as loans. The Chinese may have infiltrated the banking system and may be directly implicated. At least we know Hillary did not take money from the Chinese laundry, right? There was so much paper produced by Greenspan, that tremendous amounts were provided to China resulting in the large development of these bad securities. they were dumped on AIG, and they continued to loan to China until the system melted down, and an oscillation in deposits caused a crash because of the over-leveraging of loans.

[OldHick]

01:58 PM on 07/30/2009

It was like - a Chinese bank robbery. Their goods, some of the most expensive leaden items ever made.

[fed U]

11:20 AM on 07/30/2009

just like in the last bull market and econ recovery, main street gets left in the cold while wall street prospers...

hat tip to http://www.iamned.com

[totaldisbelief]

11:11 AM on 07/30/2009

BooGah BooGah the Senate is on the job......I'll bet the banks are trembling in fear.

[rchsod]

10:43 AM on 07/30/2009

deutshe bank and wells fargo have the majority of the foreclousers in my neck od the woods. the local savings and loans and banks have very few because they did`t sell the paper.

this "investigation" will go nowhere.

[PierreLeClerke]

11:03 AM on 07/30/2009

http://tonto.eia.doe.gov/oog/info/twip/twip.asp

Arm yourself with data

[juskidding]

10:39 AM on 07/30/2009

"... and Goldman and Deutsche Banks have already written the final report, exonerating themselves completely and proving they are actually victims of government over-regulation."

[PierreLeClerke]

10:49 AM on 07/30/2009

Since we know that the fox has hired the hen house guards, it falls to "WE the PEOPLE" to take the corrective action required to bring "ACTUAL REFORM"!

Let us therefore focus on one of the most vulnerable of the biggest offenders, B of A.

This giant boasts the largest share of American depositors.

Close every account with B of A and get five associates to commit to the same. Have each of your five, get commitments from their five closers and so on.

Only when we empty their wallets, will the barons take notice accross the industry and reform.

We do have the Power of the Purse with the Power of Five!

[totaldisbelief]

11:13 AM on 07/30/2009

I agree completely ...boycott them and shut them down...they won't get a dime from me.
Vote with your money and apply this method to any and all corporations that you find disgusting.

[OldHick]

10:35 AM on 07/30/2009

Well, at the very least they were structured poorly - a slight oscillation in accounts and they all go down.
No liquidity because of over-leveraging. they were over committed to foreign investment, without restraint.

[goddessboi]

10:15 AM on 07/30/2009

They are major players in the melt down!With Goldman created cdo's in 2006and Deutsche Bank setting up a company to buy and sell cds for these sub prime mortgages and then the government having to cover, When AIG could'nt pay. There is a direct
connection to Goldman and Deutsche Bank the melt down and the bailout/ Great wall street robbery crime of the century! Who was the big daddy insisting the government bailout was needed to prevent disaster? Henry Paulson who was the ceo of Goldman in 2006 when they created sliced and diced the cdos that began to defaulting and continue to default!
$30,000.for every man woman and child so far we will be paying for this robbery!
Treason thats what i call it!
with love and respect
goddessboi
www.butchculture.com

[schoolmaster]

10:09 AM on 07/30/2009

Is it better late than never? Or, they wanted to initiate action, after Goldman takes all the bonuses they wanted to take.

[journey80]

09:56 AM on 07/30/2009

FINALLY.
Not that anything will come of it. But a little attention can't hurt.

[DakotaMinnesota]

09:41 AM on 07/30/2009

And ACORN takes the fall in the Right Wing media...

[dbg2]

08:57 AM on 07/30/2009

What can I say, anyone honest and with half a brain knew these securities were crap 4 years ago.
Fraud at the origin, fraud at the bundle bank, fraud at the ratings agencies. Duh. Now make them pay ... Obama you can do it.

[Saidas]

10:15 AM on 07/30/2009

Obama can't even get a public option for his health care reform passed by his own party, how is he going to "do it"? Btw...I enthusiastically voted for him.

[swisskabab]

12:27 PM on 07/30/2009

Saidas --- you are correct.

I regret supporting Obama and have never voted Republican.

The public option (or govt subsized health for 45 milion uninsured) has been KILLED without a vote a on the floor.

The public option was just a show/spectacle put on for garnering political. Obama pulled a fast one on the people, just like Congress, Big Pharma, Big Insurance.

Just like limits on Wall St. compensation --- not a penny was limited. Just like throwing wall st. crooks in jail --- not a single jail sentence.

[FrozenNorthObserver]

09:55 PM on 07/30/2009

The only thing O will do is everything in his power to make sure nothing bothers his beloved Gol dman-Sa chs.

[Whitley2009]

08:42 AM on 07/30/2009

I currently bank at Bank of America. I am closing all of my accounts with that institution and going to USAA's new bank. Additionally, my two children are closing their accounts at the bank. I have a new company which will have at least four accounts, and they will not go to Bank of America.

Bank of America has betrayed the American people.

After I close my accounts, I will send a rather terse letter to the CEO so he can know my feelings on the matter of my being shafted by his people.

[PierreLeClerke]

10:36 AM on 07/30/2009

That is the only legal way to bring them down.

Not a boycott, an all out banning of a bank from a State and local level where they have not purchased political protection.

BAN THE BASTARDS!

Pull every dime from them you have and spread the word to five friends that commit to do the same.

Break them in the wallet and the rest will take notice!

[Rule Of Law]

05:56 PM on 07/30/2009

Here's a guy I stumbled across in our local weekly paper--

http://claimyourchange.wordpress.com/

His work is all about getting us to take our money out of the mega-banks who use our deposits to fund the building of coal fired plants, or the deforestation of the Amazon. Without OUR money, they can't!!!

The guy is a college freshman, and he's making a difference. We should, too.

[PierreLeClerke]

10:41 AM on 07/30/2009

We the People still have the "Power of the Purse"!

The only way to get reform is to single out the biggest offender in the room and empty his wallet.

It is the only thing they care about, the only thing that gets their attention.

Sink the biggest and the rest will wake up and correct their corrupt strategies.

They will still require close scrutiny, but they will make real change to save themselves!

Exercise the POWER of the PURSE with the POWER of FIVE!