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Goldman Settles for record $550,000,000

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skyking

Lifer
Nov 21, 2001
19,578
1,338
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I heard about this on the news. That is about 14 days of profit for them.
 

yllus

Elite Member & Lifer
Aug 20, 2000
20,576
431
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I read Michael Lewis's The Big Short a few months ago. Goldman Sachs certainly appears to be the best of the best when it comes to gaming the system. I doubt this will set them straight.
 

highland145

Lifer
Oct 12, 2009
41,690
4,392
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Of the total $550 million, $300 million will go to the government and $250 million goes to compensate two European banks that lost money on their investments.
Should have the SEC stepped in between these entities? Main street thinks the little guy got screwed. Looks like other foreign banks got it.

$300M in fines to the government? Maybe that's why.
 

dfuze

Lifer
Feb 15, 2006
11,953
0
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Curious, but where does that money go when the gov't fines corporations?
 

cubby1223

Lifer
May 24, 2004
13,518
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http://finance.yahoo.com/news/Goldman-paying-550M-to-settle-apf-2308680813.html?x=0

It seems low to me for the damage they have done, especially the fine as a proportion of their net income.
But on the other hand sounds high for the damage they can be proven to have done.

Hey, I'm not saying they are good or bad, just that it's hard to prove the bad, and what they did, was it a crime according to the letter of the law? Or is it just what we would like to be called a crime?
 

Acanthus

Lifer
Aug 28, 2001
19,915
2
76
ostif.org
But on the other hand sounds high for the damage they can be proven to have done.

Hey, I'm not saying they are good or bad, just that it's hard to prove the bad, and what they did, was it a crime according to the letter of the law? Or is it just what we would like to be called a crime?
They were certainly walking a fine line between fraud and legal. They built "death securities" specifically to be shorted, and then sold them to people unknowingly as investment products. To take out the lingo, they sold a house with a bad roof and foundation and a serial killer living in the basement to someone as their dream home.

The sad part is only the massive banks and the government have the resources to fight this... There are probably a lot more people on the hook for this than the lawsuit that was settled covered.
 
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