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Senator Carl Levin to refer Goldman Sachs and Deutsche Bank for possible criminal investigations

by: jsalera

Thu Apr 14, 2011 at 16:07:54 PM EDT

(Because I care! - promoted by Eric B.)

“Our investigation found a financial snake pit rife with greed, conflicts of interest, and wrongdoing,” Levin told reporters today.

Quietly and persistently, Carl Levin continues his all-important work on financial reform and accountability. Yesterday Zero Hedge headline ran a story under the headline “Carl Levin To Refer Goldman To Justice Department, SEC For Misleading Investors And Committing Perjury. The story is sourced from an article in FT.com.


jsalera :: Senator Carl Levin to refer Goldman Sachs and Deutsche Bank for possible criminal investigations

From Zero Hedge

Following the completion of a two-year report by the Senate Permanent Subcommittee of Investigations into the role of Goldman and other banks in the housing collapse, the FT reports that ”US Senate investigators probing the financial crisis will refer evidence about Wall Street institutions including Goldman Sachs and Deutsche Bank to the justice department for possible criminal investigations, officials said on Wednesday."

 At a briefing today, Levin said he believed Goldman Sachs executives weren’t truthful about the company’s transactions in testimony before the subcommittee at an April 2010 hearing. He said he would refer the testimony to the Justice Department for possible perjury charges...In my judgment, Goldman clearly misled their clients and they misled the Congress.” Levin said.

"Republicans and Democrats signed off on the report, which said Greg Lippmann, Deutsche’s top CDO trader, referred to assets underlying the securities as “crap” and “pigs” at the same time as his bank was selling them to clients. Prior to the crisis, Mr. Lippmann built a short position in CDOs, betting that they would fall in value, even though Deutsche had a large long position on the securities." Just more smoke and mirrors? Or are we getting to a critical mass where even the very corrupt judicial system will have to respond?

From FT.com

Mr. Levin said that, despite Goldman’s assertions it had no grand strategy to bet against the US mortgage market, there was a “big short” not disclosed to its clients. The omission, he said, misled customers who were not aware of the financial incentives Goldman had when creating and marketing CDOs.

Goldman said: “We did not have a massive net short position because our short positions were largely offset by our long positions, and our financial results clearly demonstrate this point.”

The report is the last major congressional probe into the crisis that forced governments to spend billions of dollars to rescue banks.

“The report tells the inside story of an economic assault that cost millions of Americans their jobs and their homes while wiping out investors, good businesses and markets,” said Mr. Levin. “The threads that run through all the chapters in the sordid story are conflicts of interest and extreme greed.”

Update! ... I caught this (no, it's not crabs) while reading an article about rating agencies (~Eric B.).

"Perhaps more than any other single event, the sudden mass downgrades of (residential mortgage-backed securities) and (collateralized debt obligation) ratings were the immediate trigger for the financial crisis," the staff for Senators Carl Levin and Tom Coburn wrote in their report.


The corruption was enabled by more than a federal oversight agency asleep at the switch. And, again we have to ask, why has no one gone to jail for any of this?


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you never know what life brings (0.00 / 0)
some days you're a hero. somedays you're a bum. somedays both.

anyways: thanks eric. And you do ask a relevant question. when will the looting stop and the prosecuting begin?

and many thanks to Carl Levin and Tom coburn for staying tough against the giant army of lobbyists employed by the to big to fail banks. Not all senators are for sale

America either revives its industrial base or it dies. There is no future for people in a post industrial America.  

No jail (0.00 / 0)
 and the fines will be .001% of the ill-gotten gains. That's why they keep doing it. And because they bought and paid for the Congress that made the laws, nothing will happen. While devious, their plan is brilliant.

isn't that partly our fault (0.00 / 0)
that the fines are so small and no is going to prison? I think it is time to reclaim our government.

America either revives its industrial base or it dies. There is no future for people in a post industrial America.  

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