Damn, Goldman Sachs got away with it

Read any book, read either of the two investigations, read any source anywhere and Goldman Sachs was as crooked and rotten as one can imagine. They cheated their customers, they conned the government (not hard when their ex-CEO was Treasury Secretary), and they stole untold (quite possible at least a trillion) from the public and/or taxpayers (the public theft was from pension funds, insurance, but especially commodities, since GS almost single-handedly drove up the oil process by rigging the commodities market). The other thieves in Wall Street stand in awe (and actually cheered during hearings) at the audacity and the sheer enormity of GS’s theft. Forget TARP, that was just window-dressing for the real bailout Geithner and Bernanke arranged, all hidden off the books, just like GS’s accounting.

Now it appears they have gotten away with it. The DOJ isn’t going to prosecute them. The Repugs make Obama sound like a raving lunatic seize-everything communist (which is cover so you won’t see what the other hand is doing) but when it comes to the banks he gave them a completely free pass (this is documented many places, his actual sitdown with the CEOs where he told them he was protecting them from “pitchforks”). Big surprise DOJ wouldn’t do anything as Obama didn’t really know Holder and so appointed him without knowing his previous day job was defending white collar crooks. The only thing worse at coddling the banks than this administration was Dumbya’s asleep at the switch and/or deliberate incompetence in key regulator jobs (heckuva job Brownie types, esp. idiot Chris Cox at SEC) or people actually on the take from the banks.

I can’t believe they got away, free as the breeze, and poised to do all the same stupid things again (esp. now rig the corn and soybean futures, farmers get whacked by the drought at same time as GS makes huge speculative profits). The trouble is they really believe they’re the smartest people on the planet (they’re not, that is such hype that they hire really smart people, the only criteria to work at GS is extreme greed and zero scruples, and now also no fear of the law). So they’ll overplay their hand, as they did in 2005-2008, and this time there won’t be enough Fed or Treasury money to bail them out and so they’ll bring down the whole system.

While justice would be nice, the real thing is these insane greed addicts must be stopped before they kill all of us. But that’s not gonna happen.

Well, DOJ and Eric Holder, you just let the worst thief in all of history walk.

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About dmill96

old fat (but now getting trim and fit) guy, who used to create software in Silicon Valley (almost before it was called that), who used to go backpacking and bicycling and cross-country skiing and now geodashes, drives AWD in Wyoming, takes pictures, and writes long blog posts and does xizquvjyk.
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6 Responses to Damn, Goldman Sachs got away with it

  1. douq says:

    Stiglitz knocks GS but so what, no one is going to listen to a Nobel economist when GS owns the government: http://www.huffingtonpost.com/2012/08/09/joseph-stiglitz-inequality_n_1760296.html

  2. douq says:

    A fairly good account (http://www.huffingtonpost.com/peter-s-goodman/goldman-sachs-regulation_b_1764295.html) of some of the issues, but basically saying GS didn’t break laws because they aren’t any. This isn’t really true, they broke plenty of laws, weak though they are. DOJ just doesn’t want indictments in an election year and Geithner is able to still suppress any action against the investment banks (just recently heard him, again using ‘confidence’ as his mantra to cover any of the spoiling of banks he does). The Senate hearings have enough evidence in them to prosecute some people. Perhaps DOJ is also gutless about losing – sure, maybe, like the stupid Scooter Libby trial the high-powered defense team can con the jury, but at least make ’em work for it and scare a few of them that they could end up in Club Fed. I bet insider trading alone is enough to put 50 people from GS in jail.

  3. douq says:

    This announcement that DOJ would not prosecute GS seems to be unusual (not prosecuting, not so much, but announcing, that’s the big deal). http://dealbook.nytimes.com/2012/08/10/justice-department-closes-investigation-of-goldman/ Obviously DOJ is completely in the pocket of GS and doesn’t just want to let them off the hook but also lift any uncertainty about GS prosecutions and thus the stock will rise. I wonder how much DOJ was bribed for this one.

  4. psychiseverything says:

    Great (in the sense of them being informative) post and articles. I’ll have to follow up with some more research on this one.

    • dmill96 says:

      Thanks.

      There are a lot of books on this but all those might be considered to have slanted so both of the investigations, the Commission and the Senate Committee are online, and while very dull at times, mostly just the facts. Of course Matt Taibbi’s Griftopia is a great takedown, perhaps a little overblown but entertaining and with some background facts and explanations of markets. I’ve probably read about 20 sources in some cases some fairly techie stuff since I actually studied the quant finance stuff years ago.

  5. dmill96 says:

    Not too surprising, Matt Taibbi really blasted this time. Here is the HuffPo story http://www.huffingtonpost.com/2012/08/15/matt-taibbi-eric-holder_n_1784167.html and here’s the actual blog post, http://www.rollingstone.com/politics/blogs/taibblog/ag-eric-holder-has-no-balls-20120815 Here’s another critical article, but I’m not finding its original source, http://www.huffingtonpost.com/2012/08/10/investigation-goldman-sachs_n_1765368.html

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