Tuesday, July 20, 2010

The SEC's Goldman Sachs Settlement 

Here are the first two sentences of a Washington Examiner editorial dated 20 July 2010:
It seemed a little odd last week when the Securities and Exchange Commission settled its lawsuit against Goldman Sachs within two hours of Senate passage of the Democrats' Dodd-Frank financial reform bill. After all, who could ask for a more perfect backdrop than a successful prosecution of the investment colossus of Wall Street and a prime mover in the economic crisis of 2008?

Read more at the Washington Examiner: http://www.washingtonexaminer.com/opinion/Answers-needed-on-SEC_s-Goldman-deal-1001783-98789954.html#ixzz0uEeDTyQs

The piece goes on to note that the SEC action was filed on April 15 this year, which just happened to be a week before the financial reform bill was introduced in the Senate.

I think I might have had a moment when the gift of prophecy was bestowed on me. Here's what I wrote in this blog on this subject on 21 April:
Wednesday, April 21, 2010

The SEC's Goldman Lawsuit

After reading a whole bunch of articles and listening to a whole bunch of news stories and commentary about the SEC's lawsuit against Goldman Sachs, I find the timing vis a vis Obama's push for financial industry reform to be too cute by half. I do not believe the disclaimers by Rahm Emanuel and others that the White House or the DNC had no prior knowledge of the SEC action. As any literate person over the age of about 15 knows, politicians lie. Especially about things that help them get what they want.

Then there are the stories about how much money Goldman's employees gave the Obama campaign, and how Obama's not going to give any of it back. There are other stories about the former Goldman employees occupying posts in the administration. Strange bedfellows, indeed.

Sorry, Charlie, I just don't believe in coincidences, especially in this administration.

I have no actual evidence of collusion, of course, but I'd like to go on record with a comment about how unsurprised I will be if, after a "decent" amount of time, the SEC and Goldman reach a settlement that either lets Goldman off the hook or has them paying a face-saving (to the SEC) but immaterial (to Goldman) sum in settlement, and all will once more be right with the world.

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I'm unsurprised.

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