Submitted by Lawrence Rafferty, (rafflaw), Guest Blogger
It has been almost 4 years since the economy crashed in 2007, causing what some people have referred to as the worst economic disaster since the Great Depression. Since that time there has been little or no action on indicting the alleged participants in the cause of the disaster. Maybe now, that dismal record will change.
“The chairman of the U.S. Senate’s investigative subcommittee said he believes Goldman Sachs officials made misleading statements about their trading during the financial crisis and should be investigated criminally. Sen. Carl Levin (D-Mich.) said on Wednesday that he plans to refer Goldman officials, and potentially officials from other organizations, to the Justice Department for possible prosecution and to the Securities and Exchange Commission for possible civil proceedings. “In my judgment, Goldman clearly misled their clients and they misled the Congress,” said Levin, the chairman of the Senate Permanent Subcommittee on Investigations.”Legal Times Senator Levin has called out the Goldman Sachs officials in particular for their alleged false statements to Congress and to their own customers. The committee’s 639 page report is the result of an exhaustive 2 year bipartisan investigation into the actions of Bank and Investment house officials. Levin-Coburn Report Both Levin and the Republican Ranking Member, Senator Tom Coburn have come down hard on the actions of these officials. Just what is at the heart of this investigation?
The Legal Times article linked above gives a succinct description of the issues at hand here. “At issue are the investments Goldman made regarding mortgage-backed securities. Citing e-mails and other internal company documents, the Levin-Coburn report alleges that Goldman placed major bets against those types of securities even as it continued to sell them to clients. Blankfein testified a year ago that Goldman was “not consistently or significantly net short the market in residential mortgage-related products in 2007 and 2008.” The Levin-Coburn report says Goldman’s denials ‘“are directly contradicted by its own financial records and internal communications, as well as its own public statements in 2007, and are not credible.”’ When the Republican Ranking Member agrees that the Goldman Sachs officials are unethical at best, that should open some people’s eyes. “Coburn added, “It shows without a doubt the lack of ethics in some of our financial institutions, who embrace known conflicts of interest to accumulate wealth for themselves.” Legal Times
In a Think Progress article on this subject, Senator Levin gave more details. “This deal was just one example of Goldman “profit[ing] from the failure of many of the…securities it had underwritten and sold.” As the report explains, Goldman frequently touted securities that it expected to fail to outside investors, and then bet against those securities by taking a “short position” on them. In total, Goldman “generated net revenues of $3.7 billion” by betting against securities, while their alleged victims were left with an investment that was worth only a fraction of what they paid for it.” Think Progress
It has taken quite some time for the Levin-Coburn report to come out, but for once, the Senators have not minced words. Levin doesn’t like that fact that the Goldman Sachs officials lied to him in the Senate hearing and the detail and breadth of this investigation is finally an indication that someone in Washington is taking this alleged criminal activity seriously. Is that what it takes for Congress to take allegedly criminal behavior seriously? Would Levin and Coburn have delved so deeply into this matter if they hadn’t felt lied to? At this point, I for one am just happy that Levin and Coburn are doing the right thing and referring the matter to the Justice Department and to the SEC. Now, if we can only get Attorney General Holder’s Justice Department to seriously follow-up on the Senatorial referrals, we just may have a little bit of the rule of law back in play. Maybe!
Respectfully submitted by Lawrence Rafferty, Guest Blogger
Additional Source: Levin You Tube
“Rafflaw? What actions will you take personally to maintain the integrity of your profession re: GS?
Thought so.
Thanks anyway.”
Ask (and self-answer) an arrogantly framed question, get an arrogant answer, sport.
Life is like crazy circles.
Save the mock indignation.
raff said, “The attorney can recommend and advise, but they can’t teach them morals.”
And they can’t force them to act properly either. If GoldmanSacks (misspelling intentional) went against the advice of their attorneys? Well they wouldn’t be the first or the last client to do so.
God knows why you would do it, since you hold us all in such contempt.
“anon,
thank you for your concern for the integrity of lawyers. ”
Seriously, what sort of comment is this for a lawyer to make?
Could it be any more arrogant?
The public should not be concerned about the integrity of lawyers. Thank you very much rafflaw.
I sincerely appreciate all you do on behalf of us peons.
No.
http://blogdredd.blogspot.com/2011/04/corp-germ-corp-seed-corp-monster-4.html
rafflaw,
Poor/middle class people go to trial…and then jail. Wealthy people cut deals and pay fines.
“anon,
thank you for your concern for the integrity of lawyers. ”
Similarly, I thank you for your concern about well, just about anything you post that you have no direct say in. It’s as BS as mine, isn’t it?
I however can stand knowing that law and how you and yours corrupt it, is involved with the rights and behaviors of myself and all citizens. So my concern as to your professional nonsense is not out of place.
And as you avoided my question, let me repeat it.
What did you, Rafflaw, do to disbar John Yoo?
Thanks, thought so.
Rafflaw,
I agree with you on that.
18 months is a long time to have people asking questions.
Bud,
Any indictments might not happen before the 2012 elections,but since it was a bipartisan referral, we may see a response prior to that. Of course, we may not like the response!
anon,
thank you for your concern for the integrity of lawyers. GS has the option, if they can prove it, to file malpractice claims against their attorneys if they did anything wrong. Your assumption that everything that they do is vetted by attorneys might be a stretch. The attorney can recommend and advise, but they can’t teach them morals.
I hope I am way wrong. -Bud
So do I, Bud. So do I. …because we’re in a whole world of trouble…
Rafflaw,
I think AY has said it beat.
“…especially before the election….at least….too many “Banksters” to fleece for campaign contributions…”
You just can’t offend the people that own ya.
I would honestly start praying (again) if I thought there was even a 1 in a million shot that this would proceed.
I hope I am way wrong.
I would assume that GS got sign off and advice from their lawyers re their behavior towards clients and Congress?
Should the heads of GS go to jail, what should happen to the lawyers?
Rafflaw? What actions will you take personally to maintain the integrity of your profession re: GS?
Thought so.
Thanks anyway.
I understand everyone’s distrust of the Department of Justice, but with this bipartisan report and referral, maybe, just maybe they will proceed on it. Not holding my breath, but I have my fingers crossed!
Great post Rafflaw….
With respect to Levin is is good…I agree with the rest of the sentimental respect for the Holder DOJ…It ain’t gonna go no where…especially before the election….at least….too many “Banksters” to fleece for campaign contributions…
anon nurse,
It was a valid, thorough investigation by Levin and Coburn, but, it doesn’t mean it will go anywhere.
Sorry to say it but “you can bank on that”
And you’re right anon nurse – great post.
Thanks for the posting, though, rafflaw.
Bud,
Ditto to that… No faith left, here… and I so hope you’re wrong, but doubt that you are…
Rafflaw,
Is this the same justice department, that won’t close Gitmo, or prosecute the Bush war criminals?
I have no faith in Holder or justice department…
I hope I am wrong.