Goldman Sachs Fraud Case: 10 Things You Didn't Know

The Big Picture:

I have been watching with a mixture of awe and dismay some of the really bad analysis, sloppy reporting, and just unsupported commentary about the GS case. I put together this list based on what I know as a lawyer, a market observer, a quant and someone with contacts within the SEC.

Read the whole story: The Big Picture

Comments

[reasonshouldrule]

09:58 PM on 04/30/2010

Excellent article, and I really hope you are right. Except for one thing: I'd like to see some of these people jailed and all of them fined to the tune of every dollar they have made.

[DAVID POSTER]

07:30 AM on 04/26/2010

I am not a lawyer.
That said, fraud and misrepresention of material fact is just that: fraud, and misrepresention of matrerial fact.

David

[V Opinionated]

09:11 PM on 04/25/2010

B Ritholz- instead of JUST saying that GS would lose the case he qualified his $1000 challenge by including "Settlement" of the SEC case.

The fact that your a lawyer doesn`t mean that your qualified to make a judgement on this particular type of case. Do you specialize in securities law?

GS has to settle w the SEC whether they like it or not bc if they went to trial in the US the jury pool made up of those so-called "ordinary Americans" would crucify them. Rightly or wrongly.

The current populist outrage directed at GS & Wall Street is not unlike what was seen back in J.P.Morgan`s day or the congressional hearings held after the crash of `29.

Their is a lot of blame to go around for the housing crash as well the country`s current "near-bankruptcy" status.

Do you think that the same people who have been spending "tax receipts" like drunken sailors for decades and who have nearly bankrupted the country can actually create a "fix" for Wall St.?

[steelwheels]

08:29 AM on 04/25/2010

It's all been posted before. If GS is investing their OWN monies to the tune of 76% and indie schmo's 24%, who do you think is going to lose, when someone has to? Their like dr*g dealers. They give you just enough to keep you coming back...

[oldwhitewomantoo]

11:27 AM on 04/24/2010

Great article -- and I hope you are correct!

And I totally agree -- Merrill & Chase are definitely next. I have a funny feeling BofA & Countrywide's Angelo are going to be feeling the pain, as well.

[GTGTGT]

12:21 PM on 04/24/2010

Agree settlements are likely. But the settlements will probably be light and lack social justice.

The culprits should be be stripped of their fortunes completely, right down to living on the street with unemployment insurance. Be as ruthless as Medicaid and go back years to recover any transfer of assets. Then prevent the Keating 5 maneuver where after convictions the companies paid their legal debts and thereby restored personal assets.

[oldwhitewomantoo]

01:41 PM on 04/24/2010

Good points ...

[loganhunter]

04:42 PM on 04/24/2010

"The culprits should be be stripped of their fortunes completely, right down to living on the street with unemployment insurance."

Hear hear!

[karen1p]

05:12 PM on 04/23/2010

GS being charged with fraud just gave my foreclosure defense case a severe boost. Thank you, GS! Show the fraud and bring down the financial world....just after we gave them billions to save them....that's a big glass of W...T....F...?