The Justice Department has commenced a criminal investigation of Goldman Sachs:
Federal prosecutors have opened an investigation into trading at Goldman Sachs, raising the possibility of criminal charges against the Wall Street giant, according to people familiar with the matter.
While the investigation is still in a preliminary stage, the move could escalate the legal troubles swirling around Goldman.
The Securities and Exchange Commission, which two weeks ago filed a civil fraud suit against Goldman, referred its investigation to prosecutors for the Southern District of New York, which has now opened its own inquiry.
I saw this coming. The SEC, having been called out by Goldman Sachs and others for the weakness of its legal theories and case, is bringing in the big hammer, the threat of criminal prosecution.
The government’s push to bring Goldman Sachs to heel is no kabuki.
The Obama administration and Democrats in Congress want Goldman Sachs to capitulate and confess.
This is not about Goldman Sachs’ conduct or the law. This is about whipping up populist emotions in the run-up to the 2010 elections and crushing one of the few private-sector entities still willing to defy the administration.
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Comments
I was really disappointed with the Goldman executives in their Senate inquisition. Someone with some testerone should have said that the economic collaspe was secondary to governement intervetion that extened back to Clinton and involved Barney Franks and others. That likely would have ended this farce.
I can't believe you characterize Goldman as being one of the few private sector entities willing to defy the administration. THEY OWN THE ADMINISTRATION. Just because they are willing to subject a handful of top execs to public humiliation for political reasons does not explain away the fact that they are the big winners under the new Dem bill, a bill they lobbied hard for.
It doesn't explain away that they essentially control the Fed and Treasury as regulators and that they are the biggest campaign contributors to just about every important Washington politician of both parties.
Goldman is getting what they want. They are NOT victims here. There are no good guys in this. It is just a cabal of conflicting interests in bed together.
David, they did not say that, because it was not true. I am always sadden when I read/hear this craziness. I am also sad how people call Democrats, liberals, union workers, etc…all kind of negative names, when these people are the same people who fight our wars, defend our streets, run into burning buildings, pick up our garbage, teach our children, work in our factories to make the goods we consume, etc… I just do not understand the name calling. Can someone explain that to me
What about all of the sleazy connections that Glenn Beck exposed on his show yesterday? If you didn't see it, please watch the videos over at at Watch Glenn Beck.com video
New Zeal blog has some clips of a former show – which was recorded before Glenn revealed the "wizard" of the Emerald city of Crime, Inc. yesterday!
In a nutshell, New Zeal writes:
"Big story here. Glenn Beck ties Obama to multi trillion dollar carbon trading scams, Goldman Sachs, the Joyce Foundation, Bill Ayers' brother, Al Gore, George Soros, Maurice Strong and a whole cast of villains."
This has to be shared with EVERYONE – so they will see the truth of the scheme and scam that ObaMARXIST & his evil cohorts (especially the union leaders) are weaving through a web of high crimes and deceit!!
AWFUL!!
I want our Constitutional Republic back! I want our liberty and freedom back!
Down with Marxo-Fascism that is this current, corrupt-to-the core climate at the White House and Congress!
I think the message is "We can punish you".
My question is, who is "we"? The President and his Chicago-thug advisers? The whole-damned-government-in-its-entirety? Any and all of the alphabet-soup regulatory agencies?
Is this happening just because we've let one political party gain control of the Executive and Legislative branches?
Whatever, why-ever, however: we're seeing big-government threats and pushback just for exercising our (guaranteed-hah!) freedom of speech. Lemme just say, that Tree of Liberty is looking more and more parched and withered to me.
@david7134 I wish that were true, but once the Feds take a firm like Goldman down the criminal investigation road, no good can follow. This looks bad.
I don't know how many Wall Street firms have suffered a criminal investigation and survived. I can think of some that didn't (Salomon & Drexel).
I really hope I'm wrong.
I have to disagree, Professor. This whole proceeding is designed to make it look like GS and the administration aren't friends, despite $1 million in campaign contributions and the administration's plan to give the contract to create and administer cap-and-tax to…you guessed it, Goldman Sachs. Amazing how that works. This trial is just for appearances.
Here's Marcy Kaptur's letter to Holder urging him to open the criminal investigation:
http://www.kaptur.house.gov/images/stories/letter%20agholder%20april23%202010%20goldmansachs.pdf
The classic progressive defense is to attack. I wonder to what extent the Senate panel is willing to drag their own involvement and lack of oversight into this Inquisition?
I have to agree with alwaysfiredup and pasadenaphil on this one.
My theory- a kabuki hammer. Ratchet up the supposed populist anti-bank sentiment by showing that the administration is "really serious" by bringing a criminal suit- and then throwing the suit out like a wet diaper after the midterm elections.
Remember last year when they hauled all the bank CEO's before Congress? There was a moment where a Dem. congressman started grandstanding and then asked for a show of hands of each CEO that flew to D.C. in a private jet. All the CEO's- except Goldman's- raised their hands like guilty schoolkids. It's a joke- Obama hearts GS.
Christinewjc: I saw his first show on this last Tuesday. It's not like he is coming up with a theory. He is identifying specific people with money, companies, and each other. I am assuming that do to the non-response by ANYONE ANYWHERE, that the corruption is much more extensive than with those he identified.
I suspect that since we are talking about a ten trillion scam, there even those not in on it are salivating over getting cut in. When you steal that amount of money, you can pay off just about everybody. Except of course, cough…cough… Republicans.
Tell me that Goldman Sachs don't have it coming. Go ahead.