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Matt Taibbi: AG Eric Holder Has No Balls Concerning Goldman Sachs Non-Prosecution

Taibbi / Rolling Stone: I’ve been on deadline in the past week or so, so I haven't had a chance to weigh in on Eric Holder’s predictable decision to not pursue criminal charges against Goldman, Sachs for any of the activities in the report prepared by Senators Carl Levin and Tom Coburn two years ago.

Last year I spent a lot of time and energy jabbering and gesticulating in public about what seemed to me the most obviously prosecutable offenses detailed in the report – the seemingly blatant perjury before congress of Lloyd Blankfein and other Goldman executives, and the almost comically long list of frauds committed by the company in its desperate effort to unload its crappy “cats and dogs” mortgage-backed inventory.

In the notorious Hudson transaction, for instance, Goldman claimed, in writing, that it was fully "aligned" with the interests of its client, Morgan Stanley, because it owned a $6 million slice of the deal. What Goldman left out is that it had a $2 billion short position against the same deal.

If that isn’t fraud, Mr. Holder, just what exactly is fraud?

Read more: http://www.rollingstone.com/politics/blogs/taibblog/ag-eric-...

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Taibbi is Just Another Partisan Hack

I liked him until he denigrated Ron Paul and began just blaming everything on the Republicans, while making excuses for the Democrats. Both parties are to blame. He acts like Dodd-Frank was actually decent, well-intentioned legislation.

Double Standard much?

Mr. Tough-guy Rudy Giuliani and the regulatory-industrial complex drives productive investment bank Drexel Burnham Lambert into the ground in the 1980s because Michael Milken "allegedly" received a $5 million dollar "consulting fee" from arbitrageur Ivan Boesky (a man convicted of insider trading).

However, the government suddenly has no need for the force of law when Goldman Sachs hawked the subprime market, knowingly doled out junk residential mortgage-backed securities but promoted them as investment grade and sometimes AAA, and helped propogate the worst financial crisis in the last 80 years that costed the American people hundreds of billions in lost wealth through mortgage foreclosures and the destruction of their credit scores.


Oh now I understand, because when a bank has an employee who does something wrong the government comes in and saves the day...but when the government is a COMPLICIT ENABLER as in the case of Goldman Sachs they are suddenly so mum.

Serial Hypocrisy.



Obama's Administration

not pressing charges on their #1 campaign contributor... shocking

Staircase wisdom and arguments. 100% BULL.

RE: "Goldman claimed, in writing, that it was fully "aligned" with the interests of its client, Morgan Stanley, because it owned a $6 million slice of the deal. What Goldman left out is that it had a $2 billion short position against the same deal."

Goldman cannot satisfy everybody, because it gambles on its own as well. The above charge is ridiculous based on assumption that Goldman KNEW the correct outcome and hid it from the client.


Think, folks, if Goldman advised Morgan to follow its own strategy (instead of prevailing trend) and lost, then Morgan would argue the reckless advice contrary to the prevailing trend and agreed risk level discussed prior. THE LEVEL OF RISK BETWEEN GOLDMAN AND CLIENTS WAS NEGOTIATED BEFORE. Goldman itself assumed higher risk on its own capital. It did not gamble with client's capital on higher risk bets. Those who risk higher, get higher or lose higher. It was smart thinking of Goldman to predict (not know) the collapse, but it could be wrong in timing. Even Ron Paul has no idea about exact timing. Goldman shorted at exact time.


Those who understand "hedging" can explain Goldman strategy the other way also.

For example, when a gold coin company, say Monex, buys gold wholesale, it may also short gold in order to hedge itself from the possibility of being wiped out as a business if a sudden drop in gold prices occurs (since its money has been already spent on the inventory.)

By doing this, Monex may cut its profit in half, but the risks are contained. Now, say gold price collapses big and Monex loses money on the inventory, but wins huge on the short. Can we blame Monex for offering us gold while it itself was shorting the same gold?

THINK, people. Merrill Lynch, Wachovia, Citibank & others did not hedge and were wiped out, bought or bailed out.... Our tax money went to support them, but we b[i]tch about Goldman Sachs.

what is fraud? fraud is what is newsworthy


Whether you think you can or you can't, you're right. -Henry Ford


Read the story its Great but sad
Obama is the smartest of the bunch.. but you mean to tell me his attorney general doesn't listen to him.

Ask for his resignation. except he is doing just what they want

Some are saying Obama is a murder.
but I don't know, but EVIL I am starting to think so.


the washingtonblog seems to be nailing it now that trading is taken over but the HFT

Obama just want's his slice of the pie.

we haven't seen a true leader in decades, unless you count banksters
The government should stand for fair not giveaway laws that favor so few.

Or as someone else put it.
He said Civil Service is a perfect example of the Peter Principle: employees rise to their level of incompetence.


Just want what seems to be missing, Truth and Justice for ALL
What is fraud except creating “value” from nothing and passing it off as something?

No Balls?? What are you talking about?

He WORKS with them! It takes huge balls to tell the american people you work for them (when you actually don't) then not pursue some of the largest crooks in the world. He's not ballless, he's a crook.

Eric Holder has no balls


reedr3v's picture

Always gives Obama too much of a pass for his