Back in January, Goldman Sachs and Morgan Stanley announced a $557 million settlement “for deficient practices in mortgage loan servicing and foreclosure processing.” Later this week, the chunk of that money earmarked for payouts to affected consumers will be going out in the mail. [More]
Once again, the folks at Harris Interactive have released their Reputation Quotient Report, which rates public perception of 60 highly visible companies. Regular readers of Consumerist will not be shocked to see which companies brought up the rear this year. [More]
While most of the headlines about abusive or half-baked foreclosure practices have focused on the huge retail banks — Wells Fargo, Bank of America, Citi, Chase, et al. — the big investment banks haven’t exactly been let off the hook. [More]
In 2009, tens of thousands of homeowners with mortgages serviced by Goldman Sachs subsidiary Litton Loan Servicing entered into trial loan modifications. But fewer than 12% of those same people ever received permanent adjustments to their mortgages, not because they didn’t qualify, but because Litton’s system for handling paperwork was a horrendous mess. [More]
Greg Smith, a Goldman Sachs executive, has resigned in a rather unique way, he’s written a very frank op-ed column in the New York Times, thereby fulfilling a fantasy held by every single person who has ever felt like quitting a job in a spectacular fashion. Mr. Smith, was head of Goldman’s United States equity derivatives business in Europe, the Middle East and Africa. He also managed the summer intern program in sales and trading. “I knew it was time to leave when I realized I could no longer look students in the eye and tell them what a great place this was to work,” he says. [More]
When it comes to trusting corporations, it seems we’re a lot more likely to have high opinions of the ones that provide us with shiny toys and zippy technology, rather than big bad banks and other financial institutions. That is, according to an annual public opinion poll on corporate brands. [More]
For the first time since the advent of the financial meltdown, and for only the second time since 1999 when it became a publicly traded company, Goldman Sachs has — Gasp! Horror! Shock! — lost some money. [More]
NY Attorney General Investigating Pre-Bust Hijinks At Bank Of America, Goldman Sachs & Morgan Stanley
Just when you think the beleaguered bankers of the world can finally stop dealing with pesky investigations into their roles in the recent financial ugliness (some would call it a global economic meltdown), some Columbo-like snoop has to say, “Just one more thing” and open up all new cans of worms. The latest can-opener is New York state Attorney General Eric Schneiderman, who has reportedly begun a broad investigation of Goldman Sachs, Bank of America and Morgan Stanley. [More]
Looks like Goldman has been a more frequent visitor to the Federal trough than they’ve been letting on. Despite testifying before Congress that they had only accessed the Federal Reserve’s discount window, which lets banks borrow cash from the government quickly and on favorable terms, just once, Bloomberg reports that recently released data shows they actually took at least five overnight loans from the Fed between September 2008 and 2010. [More]
On the (high) heels of a sex-discrimination lawsuit filed last week by three female current and former Goldman Sachs employees, The Daily Beast takes a look at the investment firm’s official and unofficial internal policies on dating and sex. Basically, a far worse crime than a boss groping a subordinate is a subordinate not reporting it. No news yet though on what their internal policies are on screwing America in the workplace. [More]
Get ready to slake your thirst for populist rage. Inside Job is a new documentary coming out in October that aims to expose the truth about the true architects of the financial implosion of 2008. You can probably guess from the title whom they’re fingering. Matt Damon is the narrator and it’s released by Sony Pictures Classics. Here’s the trailer: [More]
Some New York City locals feel that they were promised a grocery store and maybe a hardware store when Goldman Sachs was approved to buy a building in their neighborhood, and are extremely upset to find out they’re getting a trio of restaurants from Danny Meyer, a ballroom and a conference center. [More]
To avoid a costly and extended legal process and staunch further image degradation, Goldman Sachs is talking to the SEC about tying up their big probe and all their little probes in a little bow. [More]
Bond markets slammed Goldman Sach this week, making the firm pay more for cashizzle then even the bailed-out Citigroup. Goldman’s yield rose to 2.79 percentage points over Citigroups’ 2.29. At the end of March, before the legal and regulatory headaches began, Citigrouop’s spread was wider than Goldman’s by .45 percentage points. Higher yields on debt usually indicate a higher risk of default or other negative credit events. Concerns continue to mount over how long and how deep the firm will be tainted by the SEC’s civil lawsuit and the investigation by federal prosecutors, and what other skeletons the scrutiny might shake out.
As if Goldman Sachs didn’t already have enough problems with the SEC’s civil probe of the firm and senators screaming at execs about the “shitty deals” offered to clients, word is out now that federal prosecutors are investigating the company. According to reports out this morning, the investigation is just starting up, and no charges have been made against the company.
We don’t normally put expletives in our headlines, but when a Senator says the word nearly a dozen times in an open hearing, who are we to argue? And, we have to admit, Senator Carl Levin (D-MI) certainly makes a compelling case when he reads back Goldman Sachs internal emails and concludes that the company’s “top priority was selling that shitty deal.” Video after the jump.
A mosquito-boat’s worth of Somali pirates stunned the courtroom today when they disclosed their entire piracy enterprise was in fact a subsidiary of Goldman Sachs. [More]