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Old 04-19-2010, 04:04 PM   #41
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Fabrice Tourre, the Goldman Sachs Group Inc. employee at the center of the U.S. government lawsuit alleging securities fraud, has decided to take some personal time off and hasn't said when he will return to work, according to a person familiar with the matter.
Goldman spokesman Lucas van Praag confirmed in an email that Mr. Tourre is on "paid leave with no end date."

Tourre Takes Time Off From Goldman - WSJ.com
This is likely to be a lengthy leave of absence.
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Old 04-19-2010, 04:54 PM   #42
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Another GS piece. It gives a rudimentary description of how it occurred.

http://money.cnn.com/2010/04/19/news...tune/index.htm

Somebody's got some splainin' to do!

Something's fishy at Goldman Sachs - Video - Business News



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Old 04-19-2010, 05:12 PM   #43
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This is one of the most eloquent and intelligent commentaries I have read over the past few days. Don't miss the comments, which may be even better than the article itself.
interfluidity » Goldman-plated excuses
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Old 04-19-2010, 05:18 PM   #44
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Notice that Brewer isn't commenting. I hope he is keeping good notes for an eventual book.
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Old 04-19-2010, 05:29 PM   #45
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Not a problem Bernie Madoff has some room in his cell for some of the perps.
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Old 04-19-2010, 06:23 PM   #46
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Originally Posted by Gumby View Post
This is one of the most eloquent and intelligent commentaries I have read over the past few days. Don't miss the comments, which may be even better than the article itself.
interfluidity » Goldman-plated excuses
Thanks Gumby, that was a good article.
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Old 04-19-2010, 06:26 PM   #47
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Originally Posted by Gumby View Post
This is one of the most eloquent and intelligent commentaries I have read over the past few days. Don't miss the comments, which may be even better than the article itself.
interfluidity » Goldman-plated excuses
Excellent link. Deep in the comment section this sums up the opinion
Quote:
But Goldman met Paulson’s demand for a bespoke product by creating a new counterparty and pretending the new counterparty was the initiator of the trade, not the responding to external demand for a custom product.
./.
Goldman actively camouflaged who initiated and who was responding to Paulson’s demand for short positions in certain securities. It created a single bespoke counterparty that believed itself to be the initiator. Goldman hid from that counterparty information that it knew, and that generally any one party responding to some other party’s complex and specific demands would either learn as a matter of course or demand to be revealed.
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Old 04-28-2010, 05:17 AM   #48
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CONgress has 20% approval rating, I think Goldmans approval rating might be higher than that

Fab was Fabulous...
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Old 04-28-2010, 06:42 AM   #49
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NORFOLK, VIRGINIA – (The Borowitz Report) Eleven indicted Somali pirates dropped a bombshell in a U.S. court today, revealing that their entire piracy operation is a subsidiary of banking giant Goldman Sachs.
There was an audible gasp in the courtroom when the leader of the pirates announced, “We are doing God’s work. We work for Lloyd Blankfein.”
The pirate, who said he earned a bonus of $48 million in dubloons last year, elaborated on the nature of the Somalis’ work for Goldman, explaining that the pirates forcibly attacked ships that Goldman had already shorted.
“We were functioning as investment bankers, only every day was casual Friday,” the pirate said.
The pirate acknowledged that they merged their operations with Goldman in late 2008 to take advantage of the more relaxed regulations governing bankers as opposed to pirates, “plus to get our share of the bailout money.”
In the aftermath of the shocking revelations, government prosecutors were scrambling to see if they still had a case against the Somali pirates, who would now be treated as bankers in the eyes of the law.
“There are lots of laws that could bring these guys down if they were, in fact, pirates,” one government source said. “But if they’re bankers, our hands are tied

Somali Pirates Say They Are Subsidiary of Goldman Sachs | www.bullfax.com
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Old 04-28-2010, 08:07 AM   #50
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As far as I am concerned, Congress and the SEC have as much culpability here as Goldman. Goldman wasn't doing anything "others" were not doing back in 2007. All were able to do it because of the "unregulated shadow banking system" that was allowed to exist. Congress and the SEC absolutely knew this was going on. Anyone read the Wall Street Journal article where the guy heading this up for the SEC was working for Goldman in the CDO department when the first SEC inquiry came into Goldman? All of this was allowed to happen and set the stage for it to happen when Congress repealed the Glass Steagle Act in 1999 ....which Bill Clinton signed as well as the derivatives Act that Clinton also signed. Bush tried to reign it in...but Congress wouldn't allow it.
The other thing that happened on Clintons watch....was the push...."to make homes affordable for everyone". Remember that? Fannie and Freddie ...both government institutions....back by government mandates....were at the heart of it all. Had they not pushed....for those to afford houses that couldn't....NONE of this could have happened. WITHOUT THIS ....there would have been NO housing bubble...at all.
I have watched Congress for the last several years. They operate based on "better attack and point the finger elsewhere and ACT like we are horrified....BEFORE...the finger gets pointed at us." I do not believe those that bought these things....could not of known of their risk. They were made up of "Subprime mortgages". Subprime...means just that.....very risky. Paulson was smart...and anyone looking at the housing market (myself included) knew it would come tumbling down. Others chose to be in denial. It's also called "gambling". Guess who lost.?
Our own government set this up to happen. Wonder how much money the individuals working for our government made. Now we get to watch the dog and pony show...while our government blames someone else. Sad but true.
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Old 04-28-2010, 10:42 AM   #51
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More Andy Horowitz here:
Goldman to Employ So-called ‘Douchebag Defense’ « Borowitz Report
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Old 04-28-2010, 12:33 PM   #52
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Took me a long time to catch on to Borowitz' satire...
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Old 04-28-2010, 04:02 PM   #53
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Took me a long time to catch on to Borowitz' satire...

Oh you mean this piece on his site isn't really.

Quote:
NORFOLK, VIRGINIA (The Borowitz Report) – Eleven indicted Somali pirates dropped a bombshell in a U.S. court today, revealing that their entire piracy operation is a subsidiary of banking giant Goldman Sachs.
There was an audible gasp in the courtroom when the leader of the pirates announced, “We are doing God’s work. We work for Lloyd Blankfein.”
The pirate, who said he earned a bonus of $48 million in dubloons last year, elaborated on the nature of the Somalis’ work for Goldman, explaining that the pirates forcibly attacked ships that Goldman had already shorted.
“We were functioning as investment bankers, only every day was casual Friday,” the pirate said.
The pirate acknowledged that they merged their operations with Goldman in late 2008 to take advantage of the more relaxed regulations governing bankers as opposed to pirates, “plus to get our share of the bailout money.”
In the aftermath of the shocking revelations, government prosecutors were scrambling to see if they still had a case against the Somali pirates, who would now be treated as bankers in the eyes of the law.
“There are lots of laws that could bring these guys down if they were, in fact, pirates,” one government source said. “But if they’re bankers, our hands are tied
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Old 04-28-2010, 08:45 PM   #54
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Oh you mean this piece on his site isn't really.
Well, it was my first hint...
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Old 04-29-2010, 12:54 PM   #55
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BTW if you want another site that seem to have it right, it is Barry Ritholtz blog:
The Big Picture
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Old 05-03-2010, 10:03 AM   #56
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Yet another summary, but a good one.
Jesse's Cafe Americain: A Summary of the Goldman Sachs Fraud Case, and the Downfall of an Icon
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Old 05-03-2010, 03:53 PM   #57
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Warren Buffett try to explain what GS was doing, but said there was only a 100 people
in audience of 50,000 who would understand it. He doesn't think they did anything wrong,
but he is a major share holder.
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Old 05-03-2010, 04:06 PM   #58
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I am sure Buffett doesn't want to admit a mistake. Offensive-defensive behavior IMHO.

As a major shareholder in GS he is in a position to induce corporate capital punishment when appropriate.
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Old 05-04-2010, 12:58 PM   #59
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Actually at the rates he is getting for his money, he did not make a mistake. He knows about derivatives because he owns a company that invests in them ("Weapons of Financial Destruction"). Anything he says about GS is purely political.
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Old 05-04-2010, 09:24 PM   #60
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Actually at the rates he is getting for his money, he did not make a mistake. He knows about derivatives because he owns a company that invests in them ("Weapons of Financial Destruction"). Anything he says about GS is purely political.
Like:
The Atlantic :: Business :: Buffett's View Explains Why Goldman Will Be Just Fine
Dealbook Column - From Buffett, Thought-Out Support for Goldman - NYTimes.com
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Mr. Buffett, who has always approached investing as a dispassionate exercise based on his reading of the numbers, said IKB and ACA had all the relevant facts that any investor would need. They were able to see all the mortgages, which were referenced in full, and yet they made what turned out to be a very bad bet.
“It’s a little hard for me to get terribly sympathetic,” he said. When he makes his investments for Berkshire, he said, “we are in the business of making our own decisions. They do not owe us a divulgence of their position.”
Quote:
And ACA had probably dozens of people analyzing bonds. Many of the reports don't even explain that they were a bond insurer, but that was their job. Their job was to look at credits and stick a proper premium on if they wanted to insure them. If they didn't know what the proper premium was, they should have skipped insuring them. Almost all of the bond insurers got in trouble during that period, because they drifted over into areas that they really weren't that good.
I can appreciate Buffett's & Munger's sentiments that everybody at that level should be a sophisticated investor and able to handle the rules.

But the e-mails slinging back & forth from GS indicate that some of the people involved felt that they were getting away with something, indicating that their sense of ethics was even shakier than their understanding of the rules. And by extension, the SEC's split vote isn't very complimentary of their ethics experts either.

I think the fact that the case is civil rather than criminal says "You guys know you were doing something wrong, now pay a lot of money to get these irate taxpayers off our back".

I agree with Alice Schroeder... Buffett sold his name too cheap.

Blankfein needs some tutoring on the finer points of body language. He may be doing "God's work", but at that level it never hurts to show a little marketing skill to go with all the brains.
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