How much did Goldman Sachs raise to elect Obama in 2008?

[walruskkkch]

Enough.

That, of course, should be Goldman.

[Midnight Marauder]

From the link:

U.S. Won’t Prosecute Goldman Sachs

 

The U.S. Justice Department won’t pursue criminal charges against Goldman Sachs Group Inc. (GS) or its employees for allegedly concealing that the bank bet against mortgage-related securities that it sold to investors.

The Justice Department, along with the U.S. attorney’s office for the Southern District of New York, reviewed the possibility of prosecution after the Goldman Sachs deals were faulted in a Senate investigative panel’s report last year.

Prosecutors “determined that, based on the law and evidence as they exist at this time, there is not a viable basis to bring a criminal prosecution with respect to Goldman Sachs or its employees in regard to the allegations set forth in the report,” the Justice Department said yesterday in a statement.

The Senate’s Permanent Subcommittee on Investigations concluded in April 2011 that Goldman Sachs had peddled the securities to its clients while failing to disclose that the firm had bet that those instruments would lose value. The investigation pinned much of the blame for the credit crisis on Wall Street banks that earned billions of dollars by enticing clients to buy the risky bonds.

Senators Carl Levin of Michigan and Tom Coburn of Oklahoma, the panel’s Democratic chairman and senior Republican, referred the report to the Justice Department to see whether criminal charges were merited.

“We are pleased that this matter is behind us,” David Wells, a spokesman for the New York-based bank, said in a statement yesterday.
Blankfein Testimony

The financial-crisis inquiry was the subcommittee’s longest probe under Levin, lasting two years by the time the panel completed its work. The staff amassed 56 million pages of memos, documents, prospectuses and e-mails, Levin said last year.

As part of the investigation, Levin brought seven current and former Goldman Sachs executives, including Chief Executive Officer Lloyd Blankfein and Chief Operating Officer Gary D. Cohn, before the panel for questioning about their actions before the 2008 financial crisis.

Blankfein said in his testimony that the firm never bet against its clients for its own profit.

When the panel’s 640-page report was released, Levin said he wanted the Justice Department and the Securities and Exchange Commission to examine whether Goldman Sachs broke the law by misleading clients who bought the complex securities, known as collateralized debt obligations, without knowing the firm would benefit if they fell in value.

This after the bipartisan investigative committees found plenty of prima facia evidence of all kinds of crimes, including purgery.

Occupy Wall Streeters, where are you?

[moomin]

"The U.S. Justice Department won’t pursue"

Why isn't this business for the SEC to handle?

[walruskkkch]

Because the SEC is not as in the pocket of Obama as the DOJ is?

[Midnight Marauder]

Not sure the SEC can actually prosecute anyone criminally, I think all they can do is issue fines.

[walruskkkch]

The Division obtains evidence of possible violations of the securities laws from many sources, including market surveillance activities, investor tips and complaints, other Divisions and Offices of the SEC, the self-regulatory organizations and other securities industry sources, and media reports.

All SEC investigations are conducted privately. Facts are developed to the fullest extent possible through informal inquiry, interviewing witnesses, examining brokerage records, reviewing trading data, and other methods. With a formal order of investigation, the Division's staff may compel witnesses by subpoena to testify and produce books, records, and other relevant documents. Following an investigation, SEC staff present their findings to the Commission for its review. The Commission can authorize the staff to file a case in federal court or bring an administrative action. In many cases, the Commission and the party charged decide to settle a matter without trial.

Common conduct that may lead to SEC investigations include:
misrepresentation or omission of important information about securities;

manipulating the market prices of securities;

stealing customers' funds or securities;

violating broker-dealers' responsibility to treat customers fairly;

insider trading (violating a trust relationship by trading while in possession of material, non-public information about a security); and

selling unregistered securities.


Whether the Commission decides to bring a case in federal court or within the SEC before an administrative law judge may depend upon the type of sanction or relief that is being sought. For example, the Commission may bar someone from the brokerage industry in an administrative proceeding, but an order barring someone from acting as a corporate officer or director must be obtained in federal court. Often, when the misconduct warrants it, the Commission will bring both proceedings.

Civil action: The Commission files a complaint with a U.S. District Court and asks the court for a sanction or remedy. Often the Commission asks for a court order, called an injunction, that prohibits any further acts or practices that violate the law or Commission rules. An injunction can also require audits, accounting for frauds, or special supervisory arrangements. In addition, the SEC can seek civil monetary penalties, or the return of illegal profits (called disgorgement). The court may also bar or suspend an individual from serving as a corporate officer or director. A person who violates the court's order may be found in contempt and be subject to additional fines or imprisonment.

Administrative action: The Commission can seek a variety of sanctions through the administrative proceeding process. Administrative proceedings differ from civil court actions in that they are heard by an administrative law judge (ALJ), who is independent of the Commission. The administrative law judge presides over a hearing and considers the evidence presented by the Division staff, as well as any evidence submitted by the subject of the proceeding. Following the hearing the ALJ issues an initial decision that includes findings of fact and legal conclusions. The initial decision also contains a recommended sanction. Both the Division staff and the defendant may appeal all or any portion of the initial decision to the Commission. The Commission may affirm the decision of the ALJ, reverse the decision, or remand it for additional hearings. Administrative sanctions include cease and desist orders, suspension or revocation of broker-dealer and investment advisor registrations, censures, bars from association with the securities industry, civil monetary penalties, and disgorgement.

[Midnight Marauder]

So, the SEC does not prosecute criminally, it relies on the Justice Department for that. Now we see the issue clearly.

[moomin]

Right. So America gets another justice dividend from having elected the guy who elected Eric Holder. Awesome.

[walruskkkch]

Obama always said he would transform America.
Mark that down as "Mission Accomlished".