U.S. sues Goldman Sachs for fraud

The SEC says the Vampire Squid created and sold securities designed to fail, which were then shorted.

“Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party” said SEC Enforcement Director Robert Khuzami.

While I’m cheered that SEC has awoken from its slumber, this is a civil case. One hopes they will cut to the chase and starting filing criminal charges against investment bank parasites who are currently looting the country.

Goldman Sachs director implicated in Galleon investigation, will step down from board. Prosecutors want to know if he gave Rajaratnam insider info about Goldman.

GE being investigated by SEC

[In Sept. 2008] GE told the world its commercial paper market was doing fine, apparently in contrast to the dire things CEO Jeff Immelt was telling then Treasury Secretary Henry Paulson.

Telling the truth is so just for the little people.

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