Goldman Sachs, Bank of America, JP Morgan Chase, Magnetar and many more helped crash the U.S. and world economy by engaging in the following identical crimes :
(1) Combining loans that were likely to fail into packages known as collateralized debt obligations, or CDOs
(2) They fraudulently misrepresented the ratings of these bundled loans as being top rated A+ loans and sold the CDO’s to investors
(3) At the same time they placed financial bets that these bundles would fail (these reverse bets are referred to as shorting in the government documents below)
(4) They reaped huge profits and commissions from everything just mentioned!!
(5) This played a huge part in the U.S. and global financial collapse, and hundreds of millions of lives are being destroyed because of this.
No one is being prosecuted !!
Example 1 - JP Morgan Chase created collateralized debt obligations, or CDOs, with the help of Magnetar which also bet against many of the same investments.
The following are quotes from ProPublica.org with links to the SEC complaint :
“The $154 million settlement the Securities and Exchange Commission wrested from JPMorgan Chase involved only one of more than two dozen mortgage securities deals that the hedge fund Magnetar helped create. As we detailed last year [1], many banks in the waning days of the boom created collateralized debt obligations, or CDOs, with the help of Magnetar, which also bet against many of the same investments.
In the SEC's complaint [2] [PDF] released yesterday it accused JPMorgan of misleading investors in a complex mortgage deal it peddled in 2007. Neither the bank, nor the manager of the deal had disclosed to the investors that Magnetar not only helped choose the assets in the deal, called "Squared," but also bet against much of the deal.”
“Magnetar participated in at least 28 similar deals [3], worth more than $40 billion. Other hedge funds, such as Paulson & Co., asked Wall Street banks to design billions worth of other similar deals, crucial aspects of which were not clearly disclosed to investors.”
You can verify the article at :
** No one was prosecuted !!
Please remember there are two more JP Morgan financial crimes that I posted on another website including bid rigging in 31 states but no one was prosecuted .
Example 2 - Goldman Sachs and Magnetar also engaged in the same banking crimes as JP Morgan !! No one was prosecuted !!
The following quotes are taken from the SEC lawsuit that can be seen at :
The Commission brings this securities fraud action against Goldman, Sachs & Co. (“GS&Co”) and a GS&Co employee, Fabrice Tourre (“Tourre”), for making materially misleading statements and omissions in connection with a synthetic collateralized debt obligation (“CDO”) GS&Co structured and marketed to investors. This synthetic CDO, ABACUS 2007AC1, was tied to the performance of subprime residential mortgage-backed securities (“RMBS”) and was structured and marketed by GS&Co in early 2007 when the United States housing market and related securities were beginning to show signs of distress. Synthetic CDOs like ABACUS 2007-AC1 contributed to the recent financial crisis by magnifying losses associated with the downturn in the United States housing market.
In sum, GS&Co arranged a transaction at Paulson’s request in which Paulson heavily influenced the selection of the portfolio to suit its economic interests, but failed to disclose to investors, as part of the description of the portfolio selection process contained in the marketing materials used to promote the transaction, Paulson’s role in the portfolio selection process or its adverse economic interests.
Here are quotes from Pulitzer Prize winning ProPublica.org :
Goldman Sachs has agreed to pay $550 million [1] to settle the SEC's civil fraud lawsuit against it. How much does the settlement actually hurt Goldman? We looked a up few numbers to put things into perspective:
It's less than a tenth of the gain Goldman's stock had today.
It’s about two weeks’ worth of profit. Goldman reported [5] (PDF) earning $3.3 billion in the first quarter of 2010. That’s about $250 million in profit per week.
As we’ve pointed out, other major banks did deals similar to Goldman’s
For the full ProPublica articles please view the following websites later:
http://www.propublica.org/blog/item/other-major-banks-did-deals-similar-to-goldmans
Goldman Contributions to Obama
Here’s a partial List of Goldman Sachs campaign contributions not including lobbying. The contributions I found equal $5,490,757:
Citigroup Also Commits Identical Crimes !!
Here are quotes from a ProPublica article seen at :
Citigroup agreed yesterday to pay $158 million to settle a lawsuit [1] over bad loans that the bank passed on to the Federal Housing Administration to insure. The whistle-blower who originally brought the case, Sherry Hunt, an employee of Citi's mortgage department, said the company actively undermined the process that was supposed to check for fraud in order to push through reckless loans and get higher profits.
The suit itself makes for good reading [2]. We've pulled out the juiciest bits, and explain just what Citi appears to have been doing.
Some background: The FHA insures one-third of the mortgages loans in the country [3], taking on the risk of homeowners' default from lenders like Citi. The government requires lenders to certify that insured loans meet FHA standards.
Citi appears to have flouted those standards. According to the lawsuit, the bank passed along subpar loans to the FHA until very recently, making "substantial profits through the sale and/or securitization of FHA-backed insured mortgages" while "it wrongfully endorsed mortgages that were not eligible."
In the settlement, Citi, which was bailed out [4] by taxpayers in 2008 to the tune of $45 billion, "admits, acknowledges, and accepts responsibility [5]" for passing on bad loans.
(end of quotes)
That’s about one percent of the Non Prosecution agreements I’ve seen on the repackaging loan scam !!
The evidence you’ve just seen is part of many more patterns of life threatening crimes that are posted at :
Sincerely,
Barry Schmittou
barryschmittou@live.com
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