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HomeKeep Pressuring the Wall Street-Washington Incest
Posted by Larry Doyle on April 20th, 2010 9:17 AM |
Incestuous relationships can last a long time. When two willing consorts are engaged in incest without it being exposed, the incest can grow and ultimately become cancerous. Incestuous partners may believe they are pleasing each other at little expense to other family members. What a lie. Make no mistake, there is always a third party involved in incest. Who is that? Collectively, the family. In the case of our financial crisis circa 2010, the incestuous relationship between Wall Street and Washington has badly damaged the American family. Let us not allow either of these incestuous partners to define our current turmoil by asking family members to pick sides.
Why am I writing this? (more…)
SEC and FINRA Sued in Luxemburg re: Madoff Fraud
Posted by Larry Doyle on April 19th, 2010 5:04 PM |
In the midst of all the noise surrounding the Goldman Sachs charges of fraud brought by the SEC, another interesting suit was brought. This suit puts the financial regulators, the SEC and FINRA, on the defense. Bloomberg reports, SEC, FINRA Sued in Luxembourg Over Madoff Fund Losses:
The U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority were accused of being liable for losses in a Luxembourg fund tied to New York money manager Bernard Madoff. (more…)
Will Fabrice Tourre be Paul Mozer and Lloyd Blankfein be John Gutfreund?
Posted by Larry Doyle on April 19th, 2010 1:29 PM |
While some may view Friday’s charges by the SEC as a mere flesh wound against the all powerful Wall Street titan Goldman Sachs, I think this situation has the potential to mushroom far beyond that.
I am sure that Goldman Sachs is currently running full throttle in terms of damage control. In fact, given that Goldman was served with a Wells Notice many months ago, there is no doubt in my mind that Goldman has been ‘circling the wagons’ in regard to its legal exposures. That said, Goldman can not fully nor properly prepare for public backlash and investor outrage. As much as Goldman can do to disparage the SEC’s case, the fact is the much bigger case against Goldman will be held in the court of public opinion. (more…)
Why I Think Goldman Is Guilty
Posted by Larry Doyle on April 19th, 2010 9:30 AM |
Information is everything.
Regular readers of Sense on Cents know how often I have raised that point as being perhaps the most important factor on Wall Street. Information, timely access to information, and the reliability of that information all move markets. Who gets the information, how it is processed and shared, and how it is disclosed all play a very important factor in determining winners and losers on Wall Street.
Against this backdrop, why do I think Goldman Sachs will ultimately be found guilty of the fraud charges brought against it on Friday? Based on discussions I have had with Wall Street colleagues, Goldman Sachs utilized a law firm in this specific Abacus transaction which did not mandate full and proper disclosure. As such, I believe the law firm itself will also face potential charges for aiding and abetting a fraud. (more…)
April 18, 2010: Month to Date Market Review
Posted by Larry Doyle on April 18th, 2010 8:38 AM |
Charges of fraud at Goldman Sachs. Indications of a front organization utilized by Lehman Brothers. Rampant evidence of fraudulent mortgage lending occurring at Washington Mutual. An SEC OIG review of massive failure by the SEC in its oversight of Stanford Financial. Hell, even outside of the financial sector, we see evidence of regulatory failures within the automotive industry (Toyota) and in the mining tragedy that just occurred in West Virginia. Add it all up and all one can say is that our government has failed us. Are these failures mere mistakes, incompetence, or the result of willful neglect? (more…)
No Quarter Radio’s Sense on Cents with Larry Doyle Is Having a Tea Party
Posted by Larry Doyle on April 17th, 2010 6:48 AM |
UPDATE: This episode of NQR’s Sense on Cents with Larry Doyle has concluded. You can listen to a recording of the episode in its entirety by clicking the play button on the audio player provided below. Once the audio begins, you can advance or rewind to any portion of the episode by clicking at any point along the play bar.
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A government that operates without transparency and integrity while continually mortgaging our children’s future is a recipe for disaster.
A government that cozies up to large monied interests and looks to redistribute wealth leaves a large swath of America totally disenfranchised.
This government, as described above, occupies space on both sides of our political aisle.
Hard working Americans are voicing their discontent, if not total outrage, at our government via a movement that is sweeping our nation. While the political elite would like to dismiss this movement, and the media would like to marginalize it, the Tea Party movement is gaining traction and momentum.
Please join me this Sunday evening April 18th from 8-9pm ET as No Quarter Radio’s Sense on Cents with Larry Doyle Is Having a Tea Party. I will be ‘having tea’ with Matt Clemente and Brendan Steinhauser of Freedom Works, a grassroots organization that is making an enormous impact on our national political and economic landscape with the Tea Party movement:
Founded in 1984, FreedomWorks is headquartered in Washington, DC, and has hundreds of thousands of grassroots volunteers nationwide.
What We Do
FreedomWorks recruits, educates, trains and mobilizes hundreds of thousands of volunteer activists to fight for less government, lower taxes, and more freedom.Why We Do It
FreedomWorks believes individual liberty and the freedom to compete increases consumer choices and provides individuals with the greatest control over what they own and earn.How We Do It
FreedomWorks’ aggressive, real-time campaigns activate a growing and permanent volunteer grassroots army to show up and demand policy change.
Listen LIVE at the BlogTalkRadio website. Join our conversation at (347) 677-0792, or fire questions and comments via our always energized chat room. As a reminder, all No Quarter Radio shows are taped, archived, and available as podcasts on iTunes.
LD
A Wall Street Insider’s Views on Goldman Sachs
Posted by Larry Doyle on April 16th, 2010 1:45 PM |
Given the extraordinary interest in the SEC charging Goldman Sachs with fraud, I am compelled to provide a compilation of my writing on Goldman going back over the last year. Although many may view Goldman as one massive conspiracy, I have never been one to paint an entire organization (or industry) with a broad brush. That said, I have been aggressive in questioning Goldman’s comfort level in jeopardizing its reputation in pursuit of profit. I said as much in a public interview on CNBC last month.
Goldman’s close, if not incestuous, relationships with Washington, many hedge funds, and major clients has positioned the firm as the centerpiece of America’s outrage toward Wall Street. To that end, for those interested in my views of Goldman Sachs, I am happy to provide the following links from the Sense on Cents archives: (more…)
Doing Biz with Goldman Sachs = ‘Swimming with the Sharks’
Posted by Larry Doyle on April 16th, 2010 12:03 PM |
Given the breaking news of Goldman Sachs being charged with fraud, I am bumping up this story from my original posting on April 14th.
If you are swimming with sharks, you had better be careful.
I have had an extraordinary number of people visit Sense on Cents as a result of searching for information on how Goldman Sachs operates. Although many believe Goldman’s operations to be one massive conspiracy, I would not blindly and wantonly generalize about an entire organization. By the same token, Goldman is certainly not a pack of choir boys either. (more…)
SEC Charges Goldman Sachs with Fraud
Posted by Larry Doyle on April 16th, 2010 11:21 AM |
The Washington Post just reports, SEC Accuses Goldman Sachs of Civil Fraud:
The Securities and Exchange Commission announced Friday civil fraud charges against Goldman Sachs and one of its vice presidents. The agency alleges that the company marketed complex subprime mortgage securities and failed to disclose to investors that a major hedge fund had bet against the securities.
Goldman Sachs shares fell 7.4 percent.
Goldman was down 7.4% and is now down 14%!! This opens an enormous can of worms for the entire industry.
What other dealers engaged in similar activities? Hedge fund manager John Paulson who made billions in shorting the sub-prime market is being tied to this investigation. If Paulson aided and abetted a fraud, then he deserves to pay in spades. Sense on Cents will be monitoring closely. If it is deemed that Goldman did commit fraud, all people involved are supposed to pay with more than just fines.
Let’s go back to March 2, 2010 when I appeared on CNBC’s Street Signs and warned of Goldman’s greatest risk (at the 3-minute mark of the video):
LD
FINRA Fraud Team Must Look in the Mirror
Posted by Larry Doyle on April 16th, 2010 10:14 AM |
A report released yesterday by MarketWatch highlights the fact that the Wall Street self-regulator FINRA is launching a new initiative to target fraud within its purview of the financial industry. This initiative, designated the Office of Fraud Detection and Market Intelligence, will be headed by a longstanding FINRA employee, Cameron Funkhouser. Let’s navigate and offer insightful critique and analysis.
From the MarketWatch report entitled, Wall Street Watchdog Promises to Show More Teeth:
Wall Street’s self-regulatory body that self-admittedly failed to detect 2008’s major financial scandals has a plan to not miss the next one. The Financial Industry Regulatory Authority is touting its new fraud team as the key to spotting another Bernard Madoff. (more…)
