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Octafish

(55,745 posts)
15. S.E.C. Case Stands Out Because It Stands Alone
Mon Jun 23, 2014, 11:28 AM
Jun 2014

By LOUISE STORY and GRETCHEN MORGENSON
The New York Times, May 31, 2011

EXCERPT...

The S.E.C. focused in the complaint on disclosures in the marketing of Abacus, saying that the sales documents had failed to tell investors that the deal was devised with the help of John A. Paulson, the billionaire hedge fund manager, who was not named in the case. Mr. (John) Paulson’s firm suggested that the deal be linked to mortgages for which he expected a high rate of default, the S.E.C. said; when that came to pass, the bets he placed against the securities proved very profitable for him. But investors on the other side lost more than $1 billion, according to the S.E.C.

SNIP...

In addition, the Senate said that two Goldman employees, Deeb Salem and David Swenson, tried to manipulate prices of securities used to bet against mortgages. Both tried to help Goldman pile on larger bets against the mortgage market, and they wanted to be able to buy such negative bets more cheaply, the report said. Goldman, as a broker, was able to affect prices in the market through the bids and offers it gave out.

Mr. Swenson wrote in May 2007 that the bank should try to “start killing” prices on certain positions so that Goldman would be able to “pick some high quality stuff,” according to the Senate report. The strategy, Mr. Swenson wrote, would “have people totally demoralized.” The pair were unsuccessful in their attempt, and both denied making it to the Senate committee. Mr. van Praag said last week that the report had no evidence of manipulation.

Still, the Senate report said that “trading with the intent to manipulate market prices, even if unsuccessful, is a violation of the federal securities laws.”

CONTINUED...

http://www.nytimes.com/2011/06/01/business/01prosecute.html?pagewanted=all

I feel bad for him, too, Enthusiast. Like you, I feel worse for our nation and planet, and feel worst of all for what they did to the People.

Kick. redqueen Jun 2014 #1
Because there's no negative consequences. MannyGoldstein Jun 2014 #2
Goldman Rule Octafish Jun 2014 #13
They strut like rats in tails and top hats. JEB Jun 2014 #3
That outstanding phrase sums them up. Octafish Jun 2014 #10
It is a sad price we are all paying so a few can be enriched beyond dreams. JEB Jun 2014 #11
Thank you, JEB. I was not familiar with that site... Octafish Jun 2014 #12
What does it take to be incarcerated? Anything goes? Above the law? Owl Jun 2014 #4
If you are wealthy enough you can get away with anything in this country. Enthusiast Jun 2014 #5
The People vs. Goldman Sachs Octafish Jun 2014 #14
Kicked and recommended! Enthusiast Jun 2014 #6
S.E.C. Case Stands Out Because It Stands Alone Octafish Jun 2014 #15
If Democrats want to build an election headwind they should choose to prosecute such players. Enthusiast Jun 2014 #22
Guess the Top DEMs don't want that supermajority thing. Octafish Jun 2014 #24
He's such an upstanding guy so I will assume he paid full taxes too. mackerel Jun 2014 #7
And I am betting that the Cayman Islands are happy to "hold" Marie Marie Jun 2014 #8
K&R For crying out loud, no words...except fuck these bastards. n/t Jefferson23 Jun 2014 #9
Why nothing seems amiss to the Ref... Octafish Jun 2014 #16
Short changed? You're being kind. Jefferson23 Jun 2014 #17
Bonus Guy Deeb Salem may be one of the big brains behind the toxic swaps. Octafish Jun 2014 #31
It's so awful..this is just one reason why voters get so overwhelmed..and that only speaks Jefferson23 Jun 2014 #32
Wouldn't you be upset if you were shorted $5MM? taught_me_patience Jun 2014 #20
You forgot the sarcasm thingie. n/t Jefferson23 Jun 2014 #21
They're all liars and crooks. Lock 'em up and throw away the key. Initech Jun 2014 #18
Truly outstanding idea, Initech! The next ''Big Thing'' from Goldman Sachs! Octafish Jun 2014 #30
I'd be pretty pissed off too if I were shorted $5MM on a bonus taught_me_patience Jun 2014 #19
True. What most angers me is that he's getting a bonus for GS FRAUD. Octafish Jun 2014 #26
Kicked and recommended again. Enthusiast Jun 2014 #23
Deeb Salem was noticed in Texas, back in '07... Octafish Jun 2014 #28
Of course he cut corners. NCTraveler Jun 2014 #25
He had to explain to his mom. Octafish Jun 2014 #27
Ohhhh my. NCTraveler Jun 2014 #29
K&R woo me with science Jun 2014 #33
I hope this guy doesn't get jumped from the top of a tall bank. He's the Bankster Rosetta Stone. Octafish Jun 2014 #34
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