Thursday, May 17, 2012

#GoldmanSachs Fraud Much More Important than JPM losses.

I realize everyone is in a lather over the JP Morgan trading losses, which reports say are still rising, but I want to focus on a bigger issue which is contained in Matt Taibbi's article Accidently Released - and Incredibly Embarassing - Documents Show How Goldman et al Engaged in 'Naked Short Selling'.

Please read thru Matt's piece. You might finally start to understand why I rail on these people. Check out these gems from the piece:

“Fuck the compliance area – procedures, schmecedures,” chirps Peter Melz, former president of Merrill Lynch Professional Clearing Corp. (a.k.a. Merrill Pro), when a subordinate worries about the company failing to comply with the rules governing short sales.

 Lovely. Said it before and will say it again, the Wall St. temple is infested with maggots like this Melz.

We also find out here how Wall Street professionals manipulated public opinion by buying off and/or intimidating experts in their respective fields. In one email made public in this document, a lobbyist for SIFMA, the Securities Industry and Financial Markets Association, tells a Goldman executive how to engage an expert who otherwise would go work for “our more powerful enemies,” i.e. would work with Overstock on the company’s lawsuit."

 “He should be someone we can work with, especially if he sees that cooperation results in resources, both data and funding,” the lobbyist writes, “while resistance results in isolation.”

Harkens me back to uber imbecile and on the take Fredric Mishkin and his deal with the Icelandic Chamber of Commerce. Ah how nice. Yes I am so naive as to how things work. Well, rather than go into a diatribe on that subject I will for all simply leave the experts alone on the art of 'greasing the deal' and simply suggest look around at what we are reaping as a harvest. Look up Jefferson County for a primer.

just wait till we find out the arrangement Wall St. has had with the likes of ministry of propaganda outlets CNBC or Bloomberg. Of course you'd have to be a tin-foil-hat-wearing conspiracy theorist to suggest something as hair-brained as that, right? Moving right along:

Here, the plaintiff’s motion refers to an “exhibit 96,” which refers to “an email from [Goldman executive] John Masterson that sends nonpublic data concerning customer short positions in Overstock and four other hard-to-borrow stocks to Maverick Capital, a large hedge fund that sells stocks short.”

So in addition to buying Washington, owning the regulators, front-running clients, coppering their trades, selling toxic paper blah, blah blah we can now add revealing nonpublic customer position data to favored market participants to the list. Gotta give these thugs credit, they're thorough.

So we can wail and knash our teeth over the bailouts, about the pyschopaths this has created but that is only a symptom of the underlying problem. Think how you would gamble in Vegas were all your losses backstopped and you were re-supplied with fresh cash at all times and you have an idea as to how Goldman and Morgan operate. And yes, this is the raison d'etre for what is happening in commodities like oil etc..... taxpayer funded free money to gamble with.

For me the document dump by Goldman is the real issue. but It is more than a total disregard for the rule of law. It is a culture of lawlessness with a complete lack of enforcement of said laws with perks and cash to regulators and politicos. It is standard operating procedure on Wall St. and in many corporate boardrooms. The lack of 'consequences' for actions has led to a pandoras box of unintended ones.

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