Something quite extraordinary is happening. The mainstream, regular business people and moderates, are speaking out. They are furious about the corruption on Wall Street and death grip the banks have on DC. The banks won’t win this time.
Quiet Coup. A former chief economist of the International Monetary Fund says the finance industry has effectively captured the US government.
When sober-minded individuals begin to regard an enterprise within a nation as “an enemy of the people” you can bet that some serious blood is going to flow. This is now essentially the situation for the Goldman Sachs company.
More insider trading cases coming after Rajaratnam arrest. There are a lot of scared hedgies on Wall Street now. Can you say “prison” and “asset forfeiture”?
IBM potential CEO arrested in Rajaratnam case. That’s how deep the rot and corruption is. A Senior VP at IBM in line to be CEO has been arrested for selling insider knowledge.
Bloomberg: FDIC failed to limit CRE loans. “Failed to enforce its own guidelines.”
Goldman Sachs’ black magic, Here’s how they did it.
Investment banks borrow money from gov’t at 0%, lend it back to them at 3%. Isn’t that convenient. A license to print money, really. Banks doing this are no better than parasites.
A study found that securitized mortgages were five times as likely to be delinquent as mortgages that were not resold to securitizers. In other words, banks held the good stuff and sold the glop to be securitized. Thus, they knew exactly what they were doing
Kinda makes you think that the banks that planned on keeping their mortgages had different lending standards than those that knew the paper would be off their hands soon.