In These New Times

A new paradigm for a post-imperial world

Posts Tagged ‘Goldman’

The Devaluation of the US Dollar

Posted by seumasach on April 27, 2010


Now we have the Goldman Sachs fraud civil suit case. A closer check would raise suspicion from numerous corners. Five key red flags are raised, each worthy of future investigations.1) The Securities & Exchange Commission announced the fraud charges during a time when the Inspector General report was due for release. 2) The SEC fraud charges were announced during the time when a vote is soon coming for the Financial Reform Bill before the USCongress. 3) The SEC fraud charges were announced during the middle of the day, during stock market trading activity, a sharp break from proper information release. 4) Worse, the SEC gave Goldman Sachs a tipoff in the two weeks beforehand of the fraud charges to be made public. 5) Goldman Sachs has been privately accused of profiting from the adjustment in stock price due to its own problems. Stories are numerous of large S&P stock index puts purchased. Stories are numerous of a suspiciously high volume of ‘Out of Money’ stock option puts on GS, the Goldman Sachs stock share. They turned out to rise 140-fold, yet not much official talk about them.

So Goldman are making money out of speculating on the consequences of being prosecuted!!

Jim Willie

Financial Sense

22nd April, 2010

Click on link above for full article

The stream of events in the last four years casts extremely bad light on the US financial system, soon to reflect lower value. The subprime mortgage bonds were not isolated in damage done or loans gone bad. The prime mortgages, the Option ARMs, the second mortgages, the commercials, they almost all sport delinquencies and defaults that rival the subprimes. Details are shown in the last few Hat Trick Letter reports. The TARP Fund episode was an open extortion exercise, perpetrated on a hapless yet compromised USCongress, which now makes its own futile efforts to at least achieve disclosure of what the $700 billion or $500 remaining billion went. The US Supreme Court appears to be running interference for the US Federal Reserve, in blocking legal attempts to force disclosure of the USFed balance sheet, and disclosure of the TARP Fund disbursements. The overseas wars involve their own black eyes, what with $50 billion missing from the Iraq Reconstruction Fund. The United Nations drug task forces have pointed a finger at the US Security Establishment as funneling money into the US banking system, without which they claim the US banks would have collapsed in the autumn 2008. The nationalizations of Fannie Mae and American Intl Group took place amidst widespread charges of fraud, both in mortgage bonds and credit derivatives. Lawsuits were thwarted. The Credit Default Swap, an invention of Wall Street, has come under fire. It is being blamed for some distress in the European Govt debt markets. The CDSwap contract is under fire inside the United States even more so. Imagine a financial instrument that benefits from the implosion of financial firms, caused by policies and actions taken by the designers of the instruments. Only in America!

Now we have the Goldman Sachs fraud civil suit case. A closer check would raise suspicion from numerous corners. Five key red flags are raised, each worthy of future investigations.1) The Securities & Exchange Commission announced the fraud charges during a time when the Inspector General report was due for release. 2) The SEC fraud charges were announced during the time when a vote is soon coming for the Financial Reform Bill before the USCongress. 3) The SEC fraud charges were announced during the middle of the day, during stock market trading activity, a sharp break from proper information release. 4) Worse, the SEC gave Goldman Sachs a tipoff in the two weeks beforehand of the fraud charges to be made public. 5) Goldman Sachs has been privately accused of profiting from the adjustment in stock price due to its own problems. Stories are numerous of large S&P stock index puts purchased. Stories are numerous of a suspiciously high volume of ‘Out of Money’ stock option puts on GS, the Goldman Sachs stock share. They turned out to rise 140-fold, yet not much official talk about them.

In the following weeks we will see how much Goldman Sachs earned from their own legal challenges. In fact, a source informs me that his legal beagles regard the Paulson Abacus case as perhaps the weakest of all potential fraud cases against GSax. It might be designed to fail and be rejected by the courts. In fact, they mention that GSax might revert to a private investment bank, now that the TARP Funds were taken and returned, its commercial bank sham status no longer needed. The need instead is for privacy and no more prying eyes. GSax will not escape the lawsuits, but might face criminal charges. Watch the Germans, who are angry at being defrauded. Germany seems in many ways to act as the spearhead to disrupt, dislodge, and dismantle the US-UK streak of corporate fraud perpetrated by those wearing USGovt & UKGovt suits. The Goldman Sachs fraud case, and cases to follow, will render severe damage to the image of the USDollar, the USTreasury, and the USGovt leadership that is dominated by the GSax alumni. My belief is that the fraud charges have opened Pandora’s Box, for other complaints, other lawsuits, even class action lawsuits to be handled in federal court. The whiff of Pandora will be next seen in Germany from a broad swift response.

The White House connection to Goldman Sachs is not as clear as the USDept Treasury control by GSax. While GSax lawyers negotiated with the SEC over the high profile risk filled civil fraud charges, the GSax CEO Lloyd Blankfein visited the White House at least four times. White House logs show that Blankfein traveled to the national capital for at least two events with President Obama. Furthermore, the Obama 2008 presidential campaign received $995 thousand in donations from the GSax political action committee, its employees, and their relatives. The response included appointment of yet another GSax alumnus as Treasury Secretary, Tim Geithner. Worse, GSax has retained former Obama White House counsel Gregory Craig as a member of its legal team. The GSax connections to the White House and the Obama Admin are raising a lot of eyebrows. Influence is clear, as it might be bought. Watch the financial regulation overhaul grant even more power to Wall Street firms and more impunity for their actions. See the McClatchy Washington Bureau article entitled “Goldman White House Connections Raise Eyebrows” (CLICK HERE).

The crushing weight of lost integrity is vast. My suspicion is that the greatest impact from the Goldman Sachs stream of lawsuits and felony charges, complete with potential restitution attempts, will be on the USDollar and not the GS stock price or its balance sheet. What comes next is the survival reactions by nations under deep distress, weakend by sluggish if not moribund economies, weakened by exported toxic bonds from Wall Street, weakened by Credit Default Swap attacks lodged by Wall Street and London firms, weakened by years of accepted USTreasurys as legitimate payment for exported finished products, weakened by broad usage of the USDollar within their banking system. The Jackass maintains a firm conviction that the first few nations that break ranks from the USDollar embrace will become the leading nations in the next chapter. A shock this way comes, from a Paradigm Shift in progress, recognized across the world, but not in the United States or England. A sudden USGovt-led devaluation could come soon, ordered by the United States banking and government leaders. It might turn out to be a vain arrogant maneuver to achieve instant stability, to maintain chokehold control, and to attempt to prevent creditor abandonment.

A grand backfire comes, since numerous platforms and paper support beams can no longer bear the weight of US insolvency, US dishonesty, and US arrogance. A grand backlash comes. My best sources warn to expect flash events. Either the US will attempt to control the sudden rash of events, or foreign sources (dominated by US creditors) will pull the rug from under the US-UK controllers. The maestros in New York and London are fast losing control and credibility. The next victim front & center is information flow. The CFTC hearings to reveal the gold & silver market rigs is one item. The empty gold vaults at the London Bullion Market Assn is another item. The insider trading schemes in flash trading mechanisms by Goldman Sachs is another item. The involvement of Wall Street firms in European debt machinations is another item. The revealed USTreasury monetization and accounting is another item. The usage of the IMF and World Bank as financial weapons is another item. The narcotics trafficking under USGovt and USMilitary aegis is another item, complete with Wall Street money laundering. These highly important factors are all recent exposures of the US information machine losing its grip. These factors combine to invite a global response. It will be felt and realized eventually in the USDollar. The Euro is nowhere near as weak and fraught with insolvency as the USDollar, not to mention deep pervasive fraud. Time will prove this out.

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Banks to seal control of media industry?

Posted by smeddum on September 22, 2009

A Curious Snag In Debt-For-Equity Restructurings As Goldman And JPM Do A Stealthy Roll Up Of The Media Industry

Submitted by Tyler Durden

09/20/2009 19:11 -0500

ZeroHedge

While most hedge funds traditionally have an on-shore and an off-shore investment vehicle, the bulk of investable capital is allocated to accounts domiciled in the Caymans, Bahamas, Isle of Man, or some other tax “friendly” country, as LPs are never too crazy about that little snag known as taxes, and offshoring provides some nice and useful alternatives to said snag. Distressed hedge funds, those that acquire either secured or unsecured debt with the hope of equitization, are no exception. Yet equitization by essentially foreign vehicles is starting to get some dirty looks by regulators, which limit “foreign” equity investments in traditionally American companies and sectors. Some developments in the upcoming restructurings of media companies may put a new wrinkle on what is promptly becoming the most prevalent and profitable means for hedge funds to invest capital (not by necessity but for the simple reason that if a sector is not too big to fail, it is likely failing massively). The case of Citadel Broadcasting, which Zero Hedge discussed recently as commentary highlighting the lunacy of the current investment climate, is just such an example. Read the rest of this entry »

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Is Goldman next?- Goldman Sachs expected to reassure investors amid tumoil

Posted by seumasach on September 16, 2008

“Goldman’s profits are likely to have been hit by a dramatic fall-out in commodity prices in August, an area in which the bank is known to take significant positions”

Neatly sidestepping the sub-prime market Goldman look to have been caught up in the commodities bubble. Note that oil has hit $92 on Asian markets this morning: the bubble has burst.

James Quinn

Telegraph

16th September, 2008

Goldman Sachs chairman Lloyd Blankfein is today expected to reassure shareholders in the top-tier investment bank about the outlook despite the turmoil facing financial markets following the collapse of Lehman Brothers.

Read the rest of this entry »

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