Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
Goldman May Face U.K., German Inquiries After Suit - Bloomberg.com
Goldman Sachs Group Inc. faces a regulatory probe in Britain and scrutiny from the German government after the U.S. Securities and Exchange Commission sued the firm for fraud tied to collateralized debt obligations.

Prime Minister Gordon Brown called yesterday for the Financial Services Authority to start an inquiry, saying he was "shocked" at the "moral bankruptcy" indicated in the suit. Germany's financial regulator, Bafin, asked the SEC for details on the suit, a spokesman for Chancellor Angela Merkel said.

... The European Union is also probing Goldman's role in arranging swaps for Greece that may have masked the country's budget deficit.
...
Kim Soo Mi, a spokeswoman for South Korea's Financial Supervisory Service, said the regulator "is monitoring market developments overseas as well as in South Korea, and we plan to review the status of South Korean financial institutions' exposure to that CDO product of Goldman Sachs."



"Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char
by Melanchthon on Mon Apr 19th, 2010 at 02:41:45 AM EST
[ Parent ]
FT.com / Companies / Banks - Brown in attack on Goldman Sachs
British premier Gordon Brown attacked the "moral bankruptcy" of Goldman Sachs on Sunday after the US Securities and Exchange Commission accused the world's most famous bank of fraud.

His comments came as it emerged that Goldman and the SEC had not discussed a settlement prior to the announcement of charges last week, and as documents emerged revealing the strained relationship between the bank and the regulator during the 20-month probe.

In a submission to the SEC in September 2009, Goldman said the regulator's case had "fatal deficiencies" and no basis "in law ... or common sense".

The SEC declined to comment.

Mr Brown, who is campaigning for re-election, demanded that the UK's Financial Services Authority launch its own investigation. "The banks are still an issue. They are a risk to the economy," he said.
...
In February, the Financial Times revealed that the SEC last year sent subpoenas to banks including Bank of America, Merrill Lynch, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman, Morgan Stanley and UBS, seeking information about the marketing of CDOs.



"Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char
by Melanchthon on Mon Apr 19th, 2010 at 02:50:12 AM EST
[ Parent ]
FT.com / Europe - Calls for action in Germany and Britain
Royal Bank of Scotland, the British bank 70 per cent owned by the state, paid $841m for assets affected by the Goldman allegations when it bought ABN Amro. The government does not exert direct managerial control at RBS but Mr Brown said: "The banks themselves will be considering legal action."

Berlin said it would consider legal steps following the US action. IKB, a German bank that was one of the first casualties of the global crisis in the summer of 2007, invested about $150m in the collateralised debt obligation product at the centre of the case. IKB was later bailed out.
...
In Britain, the Liberal Democrats led calls for a standalone UK inquiry. "So many of the alleged victims will be British institutions and pension funds, the FSA must take it as seriously as the SEC," Lord Oakeshott, the Lib Dem Treasury spokesman, said. The Conservatives backed calls for the FSA to investigate, while accusing Mr Brown of being slow to act on bank regulation. "These are very serious allegations [against Goldman] that should be thoroughly investigated," Mark Hoban, shadow financial secretary, said.
...



"Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char
by Melanchthon on Mon Apr 19th, 2010 at 03:00:34 AM EST
[ Parent ]
FT:
Royal Bank of Scotland, the British bank 70 per cent owned by the state, paid $841m for assets affected by the Goldman allegations when it bought ABN Amro.

hmm. That sentence implies RBS has still invested $841M in the Abacus CDO; RBS (or the UK government) retains a (arms length) beneficial interest in SEC litigation.

Bloomberg:

Royal Bank of Scotland Group Plc paid $841 million to Goldman Sachs to unwind its position [cost of GS repurchase --leaving one to wonder how much ABN paid] in Abacus, which it inherited when it bought parts of ABN Amro in 2007, according to the SEC.

This report of RBS exposure [none] makes sense, since auditors at RBS will have recognized --after the ABN merger-- a lot of the CDO's toxic "collateral" originated by RBS's craptastic, transnational, subprime mortgage bonanza over the previous five years. While ABN wankers would have not.

also Lone Star Funds purchased IKB Sep 2008. Perhaps Kwf intends to file a claim on SEC recovered amounts, through its FRB schmuck policy.

Diversity is the key to economic and political evolution.

by Cat on Mon Apr 19th, 2010 at 12:19:52 PM EST
[ Parent ]
FT.com / US & Canada - Regulator's move risks opening lawsuit floodgates
The Securities and Exchange Commission's charges of fraud against Goldman Sachs could prompt a fresh wave of lawsuits by banks, insurance companies and investors that lost hundreds of billions of dollars on risky debts backed by subprime mortgages.

Numerous cases have already been filed related to losses on collateralised debt obligations - the debt instruments at the centre of the SEC's case against Goldman Sachs - as well as other investments related to risky US subprime mortgages.

The detailed allegations outlined by the SEC are likely to spur more lawsuits, and could also give existing cases a boost.
...
However, shares in some sectors rose, such as those insurance companies that have come close to collapse because they insured losses on such CDOs.

Bond insurers Ambac and MBIA and insurer AIG were the biggest providers of such insurance, offered in the form of credit default swaps - derivatives that pay out on default - on the CDOs. AIG's exposure to such losses required the US government to bail out the insurer and both Ambac and MBIA have filed ­lawsuits relating to losses on mortgage-backed securities.



"Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char
by Melanchthon on Mon Apr 19th, 2010 at 03:07:25 AM EST
[ Parent ]
"My administration," the president added, "is the only thing between you and the pitchforks."

Read more...

"My administration," the president added, "is the only thing between you and the pitchforks."

Read more...

"My administration," the president added, "is the only thing between you and the pitchforks."

Read more...

"My administration," the president added, "is the only thing between you and the pitchforks."

Read more...

"My administration," the president added, "is the only thing between you and the pitchforks."

Read more...



Diversity is the key to economic and political evolution.
by Cat on Mon Apr 19th, 2010 at 12:36:25 PM EST
[ Parent ]
He evidently failed. Time to sharpen pitchforks nad light torches. Where's Twank ?

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Mon Apr 19th, 2010 at 01:15:44 PM EST
[ Parent ]
Has he failed? oh I don't know. It's only April, time still to declare taxpayer "profits" from penalties forthcoming of civil litigation and Restoration of toothsome taxpayer protections by passage of the finance reform bill. Those outcomes portend, to some, an midterm Democratic Party win-win by November.

Diversity is the key to economic and political evolution.
by Cat on Mon Apr 19th, 2010 at 01:43:47 PM EST
[ Parent ]
Looters in Loafers - Paul Krugman - NYTimes.com
Last October, I saw a cartoon by Mike Peters in which a teacher asks a student to create a sentence that uses the verb "sacks," as in looting and pillaging. The student replies, "Goldman Sachs."
...
For the fact is that much of the financial industry has become a racket -- a game in which a handful of people are lavishly paid to mislead and exploit consumers and investors. And if we don't lower the boom on these practices, the racket will just go on.


"Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char
by Melanchthon on Mon Apr 19th, 2010 at 04:26:15 AM EST
[ Parent ]
Top Goldman Leaders Said to Have Overseen Mortgage Unit - NYTimes.com
According to these people, executives up to and including Lloyd C. Blankfein, the chairman and chief executive, took an active role in overseeing the mortgage unit as the tremors in the housing market began to reverberate through the nation's economy. It was Goldman's top leadership, these people say, that finally ended the dispute on the mortgage desk by siding with those who, like Mr. Tourre and Mr. Egol, believed home prices would decline.
...
By early 2007, Goldman's mortgage unit had become a hive of intense activity. By then, the business had captured the attention of senior management. In addition to Mr. Blankfein, Gary D. Cohn, Goldman's president, and David A. Viniar, the chief financial officer, visited the mortgage unit frequently, often for hours at a time.
...
Goldman's top ranks changed its stance on housing in December 2006. In a meeting in a windowless conference room on the executive floor, Mr. Viniar, the chief financial officer, and Mr. Cohn, the president, gathered about 10 executives for a briefing. Mr. Sparks, the head of the mortgage unit, walked them through the numbers. The group was unanimous: Goldman had to reduce its exposure to the increasingly troubled mortgage market.

A few months later, in February 2007, senior executives began turning up on the trading floor. The message, one former employee said, was clear: management was watching. "They basically said, `What does this department do? Tell us everything about mortgages,' " this person said.

The executives told Mr. Sparks to tell his traders to sell Goldman's positive bets on housing. The traders' short positions -- that is, negative bets, mostly used to hedge other investments -- were placed in a central trading account.



"Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char
by Melanchthon on Mon Apr 19th, 2010 at 05:45:45 AM EST
[ Parent ]
Goldman Sachs Stock, Board Under Pressure Amid Probe (Update1) - Bloomberg.com
Goldman Sachs Group Inc.'s stock may drop and the board could come under pressure to change managers after European politicians followed a U.S. fraud suit with their own plans to scrutinize the firm, investors said.
...
The SEC case against Goldman Sachs was assigned to U.S. District Judge Barbara Jones in New York who presided over the case of former WorldCom Inc. CEO Bernard Ebbers. Ebbers, who was convicted in 2005 of overseeing one of the biggest frauds in U.S. history, is serving a 25-year prison term.


"Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char
by Melanchthon on Mon Apr 19th, 2010 at 06:59:26 AM EST
[ Parent ]

Display:

Occasional Series