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Goldman Sachs served with subpoena over role in financial crisis

A photo of g93 g93
http://www.therecord.com/news/business/article/541941--goldman-sachs-served-with-subpoena-over-role-in-financial-crisis

Saw that and since so many people here want to work for the Goldman Sachs, and the June 2nd deadline is over and not as many people will be on here. May as well get some discussion going.
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A photo of goldmansachs goldmansachs
It's just a follow up nothing major. Everyone blames the investment banks for being responsible for the financial crisis, and yes they were a huge part of it but how about the regulators? The SEC went in to investigation way too late, and they had the chance to stop the leveraging done by these financial institutions much before the crisis started and they did nothing. With proper regulation, the crisis could've been stopped but the regulators didn't do anything during times they were needed the most.
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A photo of immaculatedx immaculatedx
The fault is on both the legislation/government as well as the investment banks. The crisis started for many reasons, but among others was because of the policies that were being made in favour for deregulation and further leveraging for investment banks specifically and due to the popularization of housing derivatives (which caused unprecedented amounts of subprime loans).

For a great documentary on the financial crisis: http://www.zerohedge.com/article/watch-inside-job-wall-street-horror-movie-free-0

I found a free link = ) enjoy. (Edit: I believe the links broken but search up inside job the film = ) )

Edit: Yes though, it is often said that Goldman Sachs specifically was at fault for selling sub prime mortgage derivatives and purchasing credit default swaps from AIG on the same mortgages that they had just sold. A lot of the bailout money (300 Billion to AIG I believe) went directly to Goldman Sachs. Goldman Sachs also eliminated 2 of its main competitors, Lehman and Bear Stearns = ) All hail Lloyd Blankfein!
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A photo of kiddinaround kiddinaround
http://finance.yahoo.com/video#video=25425857

Bloomberg also has some good videos ridiculing the whole process


@goldmansachs wrote
It's just a follow up nothing major. Everyone blames the investment banks for being responsible for the financial crisis, and yes they were a huge part of it but how about the regulators? The SEC went in to investigation way too late, and they had the chance to stop the leveraging done by these financial institutions much before the crisis started and they did nothing. With proper regulation, the crisis could've been stopped but the regulators didn't do anything during times they were needed the most.



Not only can you blame the regulation, but how about the American public? It really comes down to the number of people who took out $400,000 loans on a $300,000 house with like 5% down, used the extra cash to buy furniture, luxuries they didnt need, and a third car with 2 drivers in the family, and then withdrew equity from their homes to buy even more crap because they assumed that their house would go up in value forever. Then, when the housing markets crashed and they realized they owed more then their assets were worth they walked away from it all. And these people blame the investment banks.

Or how about the rating agencies who rated all these sub-prime mortgage securities with AAA ratings.

However, Just from reading the allegations about Goldman, assuming their true (which is another good question), they did violate their fiduciary duty to their clients by reccomending they purchase assets (MBS's) that they knew were bad and were likely to default.

Goldman was only a small fish in the pond of stupidity and bad risk-taking, and they're being used as a scapegoat. They won't get charged, they techinically didn't break the law assuming they didn't violate their fiduciary duties.
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A photo of immaculatedx immaculatedx
Imo, it all comes down the regulation/legislation/policy.

You can't blame Goldmans for trying to make money, their obligation solely to their shareholders, not their clients.

You can't blame middle to lower class families for not having the financial common sense to not take obvious predatory mortgages that were at Adjustable Rates.
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A photo of kiddinaround kiddinaround

@immaculatedx wrote
Imo, it all comes down the regulation/legislation/policy.

You can't blame Goldmans for trying to make money, their obligation solely to their shareholders, not their clients.

You can't blame middle to lower class families for not having the financial common sense to not take obvious predatory mortgages that were at Adjustable Rates.


hahaha what about lower tier mortgage brokers who issued a mortgage to any bloke who walked through the door. And then proceeded to sell the mortgage (usually sub-prime yielding a high interest rate) to rid themselves of the risk
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A photo of immaculatedx immaculatedx

@kiddinaround wrote

@immaculatedx wrote
Imo, it all comes down the regulation/legislation/policy.

You can't blame Goldmans for trying to make money, their obligation solely to their shareholders, not their clients.

You can't blame middle to lower class families for not having the financial common sense to not take obvious predatory mortgages that were at Adjustable Rates.


hahaha what about lower tier mortgage brokers who issued a mortgage to any bloke who walked through the door. And then proceeded to sell the mortgage (usually sub-prime yielding a high interest rate) to rid themselves of the risk



That's what I'm saying, the fact that they could do that in the first place is what was wrong.

I believe it was Fannie Mae and Freddie Mac that were buying mortgages and turning them into securities thus creating the secondary market for mortgages in the form of MBS's. I also believe these companies are Government sponsored o_O
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A photo of kiddinaround kiddinaround
Yeah, it's essentially old news. +1 for the zerohedge reference btw.

In other news... QE2 is ending
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A photo of g93 g93

@kiddinaround wrote
Yeah, it's essentially old news. +1 for the zerohedge reference btw.

In other news... QE2 is ending



Any predictions from anyone on how bad the recession/depression will be? A number of people/places are predicting a true depression (Merkel, Roubini, Bloomberg, Schiff, Reuters, etc.) Anyone have any bold predictions?
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A photo of Anonymous Anonymous
I was going to work for the Goldman Sachs because it is the Goldman Sachs until Queen's and Ivey decided to both reject me. So now I will probably go into accounting at Laurier lol.
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A photo of immaculatedx immaculatedx
http://www.youtube.com/watch?v=Lx4poQw1mZo

Can't get enough of this.
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A photo of apark17 apark17

@immaculatedx wrote
http://www.youtube.com/watch?v=Lx4poQw1mZo

Can't get enough of this.



LOL YES.

BEST VID
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A photo of kiddinaround kiddinaround

@g93 wrote
Any predictions from anyone on how bad the recession/depression will be? A number of people/places are predicting a true depression (Merkel, Roubini, Bloomberg, Schiff, Reuters, etc.) Anyone have any bold predictions?



Dent is pretty bold. http://www.zerohedge.com/article/day-harry-s-dent

"Stock markets on crack are about to join Lindsey Lohan and Charlie Sheen in rehab. Harry didn’t bat an eyelash when he looked me straight in the eye and told me that the Dow was going to 3,300 by 2014. "

He's an extremist, but I think it is very likely that we see a massive economic slowdown in the coming years. The world is still too dependant on crude for my liking. I am just praying that Bernanke can stall it long enough for me to get into the job market lol. (<- selfish)
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