Goldman Sachs and Dutsche Bank Major Cause in Financial Crisis

[Guest Fedup]

Empty their purse strings!!! SELL!!! SELL!!!

 

http://www.thestreet.com/story/11116914/1/bove-says-sell-goldman-us-to-bleed-firm.html

 

Rochdale Securities analyst Richard Bove has downgraded Goldman Sachs(GS) to "sell" from "neutral," citing a Rolling Stone article and the possibility of a government fine.

 

Bove also cut the Goldman's price target to $120 from $163.

 

"How can the company do nothing about it when it is being accused of these developments?" asked Bove. "This isn't a conspiracy theory. This is backed by an investigation of the Justice Department and clearly the government wants to blame Goldman Sachs for the financial crisis."

 

Bove added that the downgrade was ultimately the result of article's description of U.S. Justice Department investigations into the firm. He believes that Goldman has not responded to the investigations properly and investors should drop the stock.

 

"The board of the company has to be reshuffled. The government is not going to get Goldman on a $1 billion settlement and it won't let up on them until they bleed," Bove said in a phone interview. "I don't want to own the stock. I don't think investors should. The company will be trading at book value."

[Luke_Wilbur]

This is true. GS shares just dropped to $134.00. Alot of traders will not be sleeping tonight. Maybe the Judgment Day prediction was true. Monday morning will tell : )

 

Look on Google Finance.

[Guest Vampire Squid]

The case is Basis Yield Alpha Fund (Master) v. Goldman Sachs Group Inc et al, U.S. District Court, Southern District of New York, No. 10-04537.

 

U.S. District Judge Barbara Jones in Manhattan said the plaintiff, Basis Yield Alpha Fund, failed to sufficiently show that its investment in the Timberwolf 2007-1 collateralized debt obligation was a "domestic" transaction, entitling it to sue in a U.S. court.

 

http://amlawdaily.typepad.com/BasisYieldMorrisonBrief.pdf

[Guest Fedup]

Goldman Sachs slumped 3.1 per cent to $112.57. The Fed ordered Goldman Sachs to conduct an independent review of Litton mortgage unit foreclosures in 2009 and 2010 to address a "pattern of misconduct and negligence", the regulator said.

 

The Federal Reserve Board on Thursday announced a formal enforcement action against the Goldman Sachs Group, Inc. and Goldman Sachs Bank USA to address a pattern of misconduct and negligence relating to deficient practices in residential mortgage loan servicing and foreclosure processing involving its former subsidiary, Litton Loan Servicing LP.

 

Goldman Sachs sold Litton to Ocwen Financial Corporation on September 1, 2011 and has ceased to conduct residential mortgage servicing. Litton is the 23rd largest mortgage servicer in the United States.

 

The action orders Goldman Sachs to retain an independent consultant to review foreclosure proceedings initiated by Litton that were pending at any time in 2009 or 2010. The review is intended to provide remediation to borrowers who suffered financial injury as a result of wrongful foreclosures or other deficiencies identified in a review of the foreclosure process. The foreclosure review will be conducted consistent with the reviews currently underway at the 14 large mortgage servicers that consented to enforcement actions brought by the banking agencies on April 13, 2011.

 

If Goldman Sachs re-enters the mortgage servicing business while the action is in effect, it will be required to implement enhanced corporate governance, risk-management, compliance, borrower communication, servicing and foreclosure practices comparable to what the 14 mortgage servicers are implementing.

 

As noted in the April press release, the Federal Reserve believes monetary sanctions are appropriate and plans to announce monetary penalties. These monetary penalties against Goldman Sachs will be in addition to the corrective actions that Goldman Sachs will be taking pursuant to today's action. Goldman Sachs has acknowledged in today's action that it will be responsible for satisfying any civil money penalty that the Board of Governors could have assessed against Litton for its conduct.

 

 

http://www.federalreserve.gov/newsevents/press/enforcement/20110901b.htm

 

 

[Guest greenzen]

At least more people will know what they have done.

[Guest Derek]

Goldman Sachs is competing for the banking and advisory businesses of Spain, yet it betting against it. Isn't that the same story here in the United States? Investors need to flush this company down the drain. They are bad for everybody.

 

Goldman is getting compensated to market the sovereign bond of Spain, but on the other hand, Goldman has put in positions and advised its big clients to bet against the Euro and European banks, which is, in essence, betting against the Spanish bond the firm is supposed to facilitate sales, albeit indirectly.

 

So, it'd be very interesting, to say the least, to be a fly on the wall to listen what Goldman's response would be when challenged by the potential investors of the Spanish bond with questions such as "Are you sure we should buy these bonds? You guys are very bearish on the Euro and European banks and are supposedly betting against it?"

 

http://www.businessinsider.com/wall-street-banks-too-big-to-be-accountable-for-the-subprime-crisis-2011-9

[Guest Heil Goldman Sachs!]

Spaniards should look to the 2008 U.S. stock market crash, Goldman Sachs made $20.8 billion in profits coming directly out of American retirement funds.

[Guest Bill H.]

Things are looking pretty bleak for GS.

 

http://dealbook.nytimes.com/2011/10/18/goldman-loss-offers-a-bad-omen-for-wall-street/?pagemode=print

 

Goldman Sachs, once Wall Street’s highest flier, has been grounded, and it does not bode well for the rest of the financial industry or the New York City economy that depends on it.

 

The bank, both envied and loathed for its ability to churn out huge profits year after year, reported a quarterly loss on Tuesday — its first since the financial crisis and only its second since going public in 1999.

 

The misstep by the financial leader speaks to what could be a more lasting shift on Wall Street, which has been steadily retrenching over the last 12 months. While protesters a few blocks away were denouncing greed and “too big to fail” banks, the institutions themselves were coming to grips with the current diminished reality.

 

Banks, required by regulators to discontinue high-profit businesses like proprietary trading, reduce borrowings and hold more capital, may no longer be able to produce the supercharged earnings that were common before the financial crisis.

 

Although Wall Street has not changed in some significant ways — top executives are still receiving huge pay packages and its lobbyists continue to have sway in Washington — the industry is facing forces of change unlike anything since the Great Depression. Trading operations are muted. Risk-taking is tempered. And boring businesses are back in vogue.

 

“These firms are going back to the traditional investment banking model of the 1980s and early 1990s,” said Tom Marsico of the mutual fund firm Marsico Capital Management, once a large owner of financial stocks who shed investments in Goldman and other banks this year.

 

Wall Street is feeling the pinch. Last week, JPMorgan Chase reported that earnings dropped by 4 percent in the latest period. Both Bank of America and Citigroup booked banner profits. But much of those results were attributed to one-time accounting gains, rather than improved fundamentals.

 

Goldman, which has been known for its prowess in trading, has found itself buffeted by the choppy markets and economic turmoil. While the firm posted decent results in equity trading and investment management, it lost nearly $3 billion on its investments in stocks and bonds, more than offsetting the pockets of strength.

 

New York, the nation’s financial hub, is bracing for the fallout. Wall Street, which accounts for 14 percent of the state’s tax revenue, is expected to lay off an additional 10,000 employees in the area by 2012, bringing total layoffs since 2008 to 32,000, according to a recent report by the New York State Comptroller. Each of those job losses could translate into nearly two additional positions eliminated in other industries, the comptroller estimated.