The Hidden Side of Wall Street: SEC Case Against Goldman Sheds Light into Darkness, Greed and Conflict of Interest Among Good Ole Boys' Business

One thing is clear: what happens on Wall Street does not always stay on Wall Street. It has an impact on households all over this country and the rest of the world.

Who did not know about what was common knowledge among the workers of Wall Street? Maybe those who are from Main Street America. How else would you explain such large bonuses paid to the employees if money was being made the regular way? Guys like Paulson devise new ways, new math or logorithm to take advantage of a weakness in the market, package it and sell it to banks in the US and overseas. Then, $billions are expected to be raked in and shared among the top players. The Hamptons and parts of Connecticut will not soon know the misery that Main Street America has known for many years. There is enough dough hidden in thick layers of paper and in bank accounts? The billions are not dissipating soon.

Here is what has been going on:

"f so, this is going to be the biggest scandal to hit Wall Street since the dot-com meltdown, and the SEC's actions will be seen as the sharpest attack on a major firm since then-New York Attorney General Eliot Spitzer sued Merrill Lynch back in 2002.

But even after the worst financial crisis since the 1930s, the Wall Street banks have won victory after victory in their lobbying efforts and have paid their undeserving minions rich bonuses, which have really stuck in the public's craw..."

According to this MarketWatch article, here is how things have been going down there:

""We expect to leverage ACA's credibility and franchise to help distribute this Transaction," an internal Goldman e-mail said.

Paulson, the SEC claims, handpicked a bunch of the mortgage securities that ultimately went into that CDO, called Abacus 2007-AC1. They were chock full of adjustable-rate mortgages to borrowers with low FICO scores in Arizona, California, Florida, and Nevada, the complaint says.

Unfortunately, Goldman didn't disclose Paulson's role to IKB, the German bank to which it sold $150 million worth of the $1 billion CDO, nor did it mention it in its marketing materials to other institutions, the complaint says...."

Now you can have an idea of what people on Main Street America have been dealing with. Their losses are gains for a few on Wall Street. They are out of their home while these guys or Paulson are enjoying millions, their ill-gotten money. Pure Greed! One guy who is playing the game and expected to win big. And he did with the complicity of banks such as Goldman and others.

Read the rest of the article at MarketWatch

http://www.marketwatch.com/story/goldman-case-shows-wall-streets-true-colors-2010-04-24

President Obama on Wall Street and in Wall Street: Warning Against Selfish Pursuit of Business...

The president warns against a selfish pursuit of business which carries bad news for the rest of the economy.

"It is essential that we learn from the lessons of this crisis, so we don't doom ourselves to repeat it,'' Obama said. "And make no mistake, that is exactly what will happen if we allow this moment to pass – and that's an outcome that is unacceptable to me and it's unacceptable to you, the American people.''

"I believe in the power of the free market,'' Obama said Thursday. "I believe in a strong financial sector that helps people to raise capital and get loans and invest their savings. But a free market was never meant to be a free license to take whatever you can get, however you can get it.

"That is what happened too often in the years leading up to the crisis,'' he said. "Some on Wall Street forgot that behind every dollar traded or leveraged, there's [a] family looking to buy a house, or pay for an education, open a business, save for retirement.''

Goldman Sachs into SEC Radar: SEC Files Suit Against Wall Street Goliath

The secrets of Wall Street are hitting Main Street. Remember all the humongous bonuses of yesteryear? Well, now you can understand what was going on. Who was watching out for us on the Main Street? It is time that something is done!

The Securities and Exchange Commission (SEC) filed fraud charges against Goldman Sachs on Friday, alleging that the famously successful but vilified Wall Street bank sold investors a subprime-mortgage investment that was secretly designed to lose value. Huge news on the Wall Street Stratosphere!

In filing the civil suit, the agency targets one of the few banks that, with the help of taxpayer bailouts, emerged from the financial crisis stronger than before. The case strikes at a main cause of the financial crisis: the creation of investments derived from home loans made to borrowers who couldn't afford the houses they were buying.

But the suit, which alleges that Goldman Sachs misled its clients, goes beyond, raising the possibility that the bankers who devised these investments knew they were selling toxic financial products that could endanger the financial system but were concerned only with the fees they would earn by doing so.

The SEC suit comes against the backdrop of a escalating battle on Capitol Hill over how best to overhaul the regulation of financial firms and prevent the kind of abusive practices that contributed to the worst financial crisis in decades.