Did Paulson Violate The Fair Credit Reporting Act?

Did Paulson Violate The Fair Credit Reporting Act?

When the SEC announced its fraud complaint against Goldman Sachs, people noted that the penalties involved would involve money, not jail time. But an attorney writing for seekingalpha.com argued over the weekend that John Paulson, the hedge fund manager who worked with GS to create “synthetic derivatives,” accessed FICO scores to create his financial product and therefore violated the Fair Credit Reporting Act (FCRA)–which could mean a penalty as high as $1 billion, and even jail time if the FTC or Justice Department decides to go after him. [More]

10 Things You Don't Know About The Goldman Sachs Case

10 Things You Don't Know About The Goldman Sachs Case

The media spin cycle is churning out its typically tepid hogwash about the SEC’s suit against Goldman Sachs. The Big Picture skewers 10 myths about the case and gets to the heart of the matter: Goldman is screwed. Here’s why: [More]

SEC Wants Disclosures For Asset Backed Securities Written In Python

SEC Wants Disclosures For Asset Backed Securities Written In Python

“Waterfall” provisions of asset backed securities are the rules that explain the flow of funds in the transaction, and they are are very hard to read. Blogger/professor Jayanth Varma calls them “horrendously complicated,” leading trustees to make mistakes or pull stunts that investors never expected. To remedy this, the SEC is proposing that the provisions be written in a programming language, filed on EDGAR, and made available as downloadable Python source code. [More]

SEC Charges Goldman Sachs With Fraud

SEC Charges Goldman Sachs With Fraud

The SEC today announced civil fraud charges against Goldman Sachs and VP Fabrice Tourre. The chargea allege that Goldman ripped off investors by allowing a client who bet against the housing market to pick the mortgage securities being sold to other investors who were also investing in the housing market. [More]

Bankers Back To Congratulating Themselves, Bonuses Up 17%

Bankers Back To Congratulating Themselves, Bonuses Up 17%

In these tough times, it’s easy to forget about the struggling bankers out there as you dodge their SUVs on your walk to the unemployment office. So it’s a good thing they have someone looking out for their financial interests — themselves. [More]

Wall St. Helped Hide Greece's Debt, Now It's Kablooie!

Wall St. Helped Hide Greece's Debt, Now It's Kablooie!

Looks like Goldman turned the Parthenon into a gunpowder magazine for a second time; Greece’s recently revealed debt crisis is rattling the world economy and familiar culprits are at play: Wall Street banks, off-the books loans, derivatives, and other occult financial instruments. I guess we blame the consumer on this one too? [More]

Lawsuit: Goldman's Bonuses Eclipsed Earnings

Lawsuit: Goldman's Bonuses Eclipsed Earnings

Goldamn Sachs gave out more in bonuses than it earned in income last year, according to a lawsuit filed by a pension plan. The suit says that Goldman’s revenue was inflated by government bailouts, yet it continued to pay out 50% of revenue as bonuses. [Reuters] [More]

Goldman Secretly Bet On Housing Crash

Goldman Secretly Bet On Housing Crash

A 5-month investigation by McClatchy Newspapers has found that Goldman secretly bet on the housing crash, went out and pimped the dickens out of assets it knew were junk, and may have broken securities laws in doing so. McClatchy found that Goldman…

Goldman Sachs Thinks Walmart And Amazon Are Gonna Kick Best Buy's Ass

Goldman Sachs Thinks Walmart And Amazon Are Gonna Kick Best Buy's Ass

Best Buy has been downgraded to neutral from “buy” by Goldman Sachs on concerns that Amazon.com and Walmart are poised to begin a serious asskicking.

NY AG: Banks Paid Bonuses That Were Substantially Greater Than The Banks' Net Income

NY AG: Banks Paid Bonuses That Were Substantially Greater Than The Banks' Net Income

New York Attorney General Andrew Cuomo’s report on the bonus structures of the banking industry is out and — oh my— it’s damning. The AG says that 3 banks, Goldman Sachs, Morgan Stanley, and JP. Morgan Chase, paid out bonuses that ” were substantially greater than the banks’ net income.”

JPMorgan Chase Wants To Repay Bailout Money

JPMorgan Chase Wants To Repay Bailout Money

JPMorgan Chase, Morgan Stanley and Goldman Sachs are seeking permission to repay government bailout funds, says Reuters.

Bailed Out Bank Executives Got $1.6 Billion

Bailed Out Bank Executives Got $1.6 Billion

A study by the Associated Press says that executives at bailed out banks got $1.6 billion in salaries, bonuses, and other benefits — including cars, personal use of company jets, and country club memberships.

Goldman Furious Over Our Posting Insider's Confession About Ripping Off Non-Profits

Goldman Furious Over Our Posting Insider's Confession About Ripping Off Non-Profits

Goldman-Sachs read my post, “Goldman Rips Off Non-Profits, Endowments, Foundations, And Charities” about a conversation I had with a Goldman-Sachs trader where he boasted about ripping off charitable organizations with excessive fees, and they’re hopping mad. Here is the lovenote sent by Melissa Daly, VP of Corporate Communications:

Goldman Rips Off Non-Profits, Endowments, Foundations, And Charities

Goldman Rips Off Non-Profits, Endowments, Foundations, And Charities

UPDATE: Goldman Furious Over Our Posting Insider’s Confession About Ripping Off Non-Profits

March Madness-Style Bracket Makes Bank Mergers Fun

March Madness-Style Bracket Makes Bank Mergers Fun

TechCrunch has posted this “March Madness” style bracket of the recent financial meltdown. It was reportedly created by a general partner at Sansome Partners named Mark Slavonia, says TC.

Treasury Says It Will Agree To Cap Wall Street Executive Pay

Treasury Says It Will Agree To Cap Wall Street Executive Pay

One of the major sticking points of the inevitable Wall Street bailout was executive pay — but the New York Times says that Treasury Secretary and former CEO of Goldman Sachs, Henry M. Paulson Jr., has agreed to compensation caps for the executives of firms that benefit from the bailout.

Warren Buffett Buys $5 Billion Worth Of Goldman

Warren Buffett Buys $5 Billion Worth Of Goldman

Warren Buffett buys $5 billion in Goldman Sachs stocks, causing a subdued “yay” to rise among investors. Is the contemporary equivalent to J.P. Morgan helping to calm the Panic of 1907 by walking onto New York Stock Exchange and buying bank stocks?

It's "The End Of Wall Street As We Have Known It"

It's "The End Of Wall Street As We Have Known It"

Goldman Sachs and Morgan Stanley will no longer be investment banks, says the New York Times. Instead, they will “transform themselves into bank holding companies subject to far greater regulation.”