Goldman got off for two separate things here, detailed in this contemporaneous report on the SPSCI report: one, the securities fraud elements of lying to their investors and profiting off their lack of disclosure; and two, lying to Congress about it. The Justice Department didn’t see a problem with it. So any upstart investment bank looking to make it in the world, you have your marching orders. You have to lie to your investors, take the other side of the bet on the deals you offer them, and when questioned about it, obfuscate and obstruct the investigatory body. That’s the way to the top.
|By: David Dayen Friday August 10, 2012 6:40 am|
|By: David Dayen Thursday August 9, 2012 1:40 pm|
Goldman Sachs announced in a regulatory filing that the Securities and Exchange Commission has closed their investigation into the firm misleading investors on a $1.3 billion subprime mortgage-backed security deal.
|By: David Dayen Thursday August 9, 2012 8:40 am|
Several former traders at UBS have been offered a deal by federal prosecutors in the unfolding Libor scandal, which if we had a criminal justice apparatus dedicated to accountability would be a moment of hope for the potential of going up the chain and indicting those who authorized the rate-rigging. Under the deal, the US would waive the traders from criminal charges in exchange for their cooperation in the investigation.
|By: David Dayen Thursday August 9, 2012 6:40 am|
It has now been six months since the announcement of the foreclosure fraud settlement between multiple federal agencies, the state Attorneys General and the five leading banks. It has also been six months since the establishment of the RMBS working group, the task force inside the larger financial fraud unit at the Justice Department, which is supposed to be ferreting out fraud among the major banks in the securitization phase of the housing bubble. New York Attorney General Eric Schneiderman famously said that if nothing happened in the task force within six months, he would walk away in very loud fashion.
I think it’s fair to say that nothing has happened.
|By: David Dayen Monday August 6, 2012 10:50 am|
It is fun to watch these banks turn on one another. UBS has delivered communications showing culpability by Deutsche Bank, HSBC and the Royal Bank of Scotland. HSBC has provided conflicting documents. Barclays called out HSBC, Deutsche Bank, Société Générale and Crédit Agricole. Citigroup is flipping on all of them, distancing themselves from the wrongdoing and pinning it on Barclays. It’s all great theater.
|By: Kevin Gosztola Monday July 23, 2012 10:45 am|
For fourteen years, the university put its prestigious football program ahead of doing anything for the children, who were victimized. This is appalling and despicable. And, now, today the National Collegiate Athletic Association (NCAA) has levied incredibly severe penalties against the institution for covering up crimes that were committed against children. What does this case tell us about holding other institutions and officials, including government, accountable for their actions?
|By: David Dayen Monday July 23, 2012 10:08 am|
The NCAA has banned Penn State from college football bowl participation for four years, fined the university $60 million, vacated 110 victories from 1998 to 2011, and enabled all football scholarship athletes at the school to transfer without having to sit out a year. Except for banning, this is perhaps the most that could otherwise be done in the wake of the Jerry Sandusky sex abuse scandal.
|By: David Dayen Monday July 23, 2012 8:03 am|
Reuters, which has been generally pretty solid on the Libor story, reports that arrests are imminent in the rate-rigging scandal. It’s not clear whether the arrests will go beyond a few traders and reach into senior management who provided the cover.
|By: Peterr Monday July 16, 2012 3:30 pm|
Since last November, when the Jerry Sandusky saga propelled Penn State into the headlines, I’ve wondered about Penn State’s former president, Graham Spanier. After reading the Freeh Report in its nauseating detail, I did more than wonder — I started digging for Spanier’s own words on what it means to be a university president.
What I found does not make for a pretty picture.
|By: David Dayen Sunday July 15, 2012 11:50 am|
A former prosecutor did suggest to me last month that the Administration wouldn’t have thrown together a financial fraud task force, and revive it earlier this year, if they didn’t have some prosecutions waiting on the runway. Libor could be those prosecutions. It wouldn’t surprise me at all.