Friday, April 16, 2010

Why would the SEC charge Goldman Sachs on Friday options expiration day?

A little too late to prevent the now paused but soon to be continuing financial meltdown brought upon this nation by unprecedented fraud from the RICO RACKET:

The SEC has finally charged Goldman Sachs and its exec Fabrice Tourre(known as Fabulous Fab) with civil securities fraud for creating securities for its client John Paulson then selling it to their clients(Two European Banks) while simultaneously betting against the toxic bouquet that it helped create.

From the Horse's mouth, all you need to know about self named DIVA known as Fabulous Fab:
"More and more leverage in the system. Only potential survivor, the fabulous Fab[rice Tourre]... standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstrosities!!!"

"April 16 (Bloomberg) -- Goldman Sachs Group Inc. was sued by U.S. regulators for fraud tied to collateralized debt obligations that contributed to the worst financial crisis since the Great Depression. The firm’s shares tumbled as much as 16 percent and financial stocks slumped.

Goldman Sachs misstated and omitted key facts about a financial product tied to subprime mortgages as the U.S. housing market was starting to falter, the Securities and Exchange Commission said in a statement today. The SEC also sued Fabrice Tourre, a Goldman Sachs vice president.

“The product was new and complex but the deception and conflicts are old and simple,” SEC Enforcement Director Robert Khuzami said in the statement. “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.”

The SEC alleged that Goldman Sachs, led by Chief Executive Officer Lloyd Blankfein, 55, structured and marketed CDOs that hinged on the performance of subprime mortgage-backed securities. The New York-based firm failed to disclose to investors that hedge fund Paulson & Co. was betting against the CDO, known as Abacus, and influenced the selection of securities for the portfolio, the SEC said. Paulson wasn’t accused of wrongdoing. "

There is one pertinent question that must be asked not only of the SEC but of Goldman Sachs?

Why today? Why on an options expiration day?

Is the SEC in collusion with Goldman Sachs? It is beyond simple suspicion that this happened on an options expiration day. Had this occurred next Monday it would have been suspicious also.

Did the SEC staff not know that today was expiration day? Hardly!

Someone must have known about these proceedings and guess #1 is Goldman Sachs.

Who's going to investigate Goldman's traders and their purchasing of puts on their own securities to bet against themselves in effect and win big.

How big?

If a gambler( aka Government Sachs Casino Services, Inc) had put down 1 grand on their $170 April put options in the morning when they were trading for pennies, by high noon that 1k bet(plus 1k commissions) would be worth at least a cool million if not 1.45 million.

Does the SEC care to find out who else was betting on Goldman to fall this much on options expiration day?

This would be a loop feedback type of investigation where the SEC would be investigating its own leaks on this case.

A slap of the hand indictment was bound to happen, but there's a reason why you don't indict on options expiration days, unless you have the need to make 110,000 % on your money in one day.

That means you Ben's Bernanke's Brigade of bribed primary dealers. Who's going to investigate you?

1 comment:

Cesare Bonventre said...

These guys are financial terrorists; they should be decapitated! Throughout history when bankers have seized control of the system & impoverished the community there has been some penalty to pay & this is one of those inflection points in history where a group of individuals have taken it upon themselves to bankrupt the state.

Stock options, like hedge funds & derivatives & credit default swapping, are simple counterfeiting! It is not matter of making poor business decisions: back dating stock options & issuing them after rigging is counterfeiting, fraud & embezzlement. It is a preplanned financial holocaust by financial terrorists! If Osama Bin Laden were running the Central Banks in America, he would be doing a much better job of it!

The damage done by these financial terrorists like Goldman Sachs & JP Morgan along with the FED, who dole out billions in free bonuses, is incalculable! Even Greenspan himself admitted it was a huge mistake by saying: I’m in the pocket of the corrupt bankers, and I am aiding & abetting the destruction of the financial system!

European state aid is interlocked into the International Bank of Settlements, which is tied to World Bank, which is tied into the IMF, which is once again tied into Goldman Sachs! Why doesn’t Europe & America want to be independent of Goldman Sachs & JP Morgan? Instead their lives are dictated to by a bunch of arbitrage wielding sycophants & sociopathic criminals who profit by destroying the system!

So unemployment & the numbers of uninsured are skyrocketing; the social fabric is coming unglued such as in Iceland; all due to this premeditated financial terrorism by these banking oligarchs.

The FED & Treasury are the purveyors of US T Bonds. But for many years, big banks like JP Morgan & Goldman Sachs have sold T Bonds that they had no authority to sell; which is essentially counterfeiting those bonds: Selling short Bonds that don’t even exist

The FCC had all records on criminals like Paulson, Geithner, Ruben, Summers & others engaging in that illegal activity. But all the records of those illegal trades were destroyed when WTC 7 was brought down by thermite on 9/11!