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Today Goldman Sachs have been ordered to pay compensation for the financial misery caused by this man and his hedge fund- basically a huge bet.
But we will all be paying for this man's mistakes- 5 years of paying back the deficit with drastic cuts to public services,
What do you think his penance should be?
http://imarketnews.com/?q=node/16550
George Brims
16-Jul-10, 21:07
Who is "this man"? Goldman Sachs is a big company, founded in 1865, by a bloke called Marcus Goldman. The Sachs part of the name comes from his son-in-law.
The man is John Poulson who set up the hedge fund, Goldman Sachs and he made a fortune as the worlds economy went into meltdowm and they get fined 1.2% of their turnover, some justice.
Just to make something clear before we start a man hunt - neither John Paulson nor his company were named as defendants in the case. As for his "mistakes", that is merely a point of view - I'm not going to defend his actions, but the man is a financial expert who's job was to make money, and he actually made a lot of it during the financial crisis. Whether his means for making that money are moral justifiable or not is a different issue.
Today Goldman Sachs have been ordered to pay compensation for the financial misery caused by this man and his hedge fund- basically a huge bet.
I forgot to quote this in the last post so I'll do it now. As far as I'm aware, the financial crisis was not caused by John Paulson and his hedge fund. They did bet against many major banks, etc, but that is not to say that he had anything to do with their collapse, he merely profited from it.
The man is John Poulson who set up the hedge fund, Goldman Sachs and he made a fortune as the worlds economy went into meltdowm and they get fined 1.2% of their turnover, some justice.
Not too bombard the thread with my opinions and posts, but I wanted to reply to this as well, but I decided to do a bit of reading so I'm not totally off key. Now, from what I understand John Paulson and his hedge fund company bet against some of the major British banks around the time of the financial crisis, which meant that were these bank's shares to drop, he and his company would profit from this. I think it's important to remember here that this is a completely legal thing to do, and a legitimate (in the financial as opposed to legal sense) way of making money. I say this is a legitimate way of making money because from what I understand of hedge funds, the idea is you buy shares that you believe will go up in value, and sell short shares you believe will go down in value, overall creating a balance which therefore should not hurt, or effect in any way, the market as a whole. I do not know what exactly caused the financial crisis, and I would be surprised if it was just one thing, and I think the whole basis of this thread is very unfair, if it is to simply pick one bank and one hedge fund to blame for this whole mess.
Sara Jevo
17-Jul-10, 06:04
I posted some links a while ago on this.
Goldman Sachs got involved in selling sub-prime mortgages with another company. Goldman knew its partner was betting on the value of this stuff going down, but did not tell clients (inc RBS) who bought up the stuff.
In other words, it was selling a pig in a poke, its staff knew it and they trousered huge bonuses for it.
This is the company whose CEO says they are doing "God's work".
The devil's work, more like. Hell would be too good for these greedy, slimey, good-for-nothings.
Goldman Sachs got involved in selling sub-prime mortgages with another company. Goldman knew its partner was betting on the value of this stuff going down, but did not tell clients (inc RBS) who bought up the stuff.
Again, perhaps not moral justifiable but I do not think this is illegal. And also, RBS are a huge financial business themselves, and as the betting on the value of stock is, I believe, not private information, one would assume that they should have had the capabilities, and more importantly, the intelligence, to check these things through before buying. As I said before, I'm not trying to defend Goldman Sachs, I'm suggesting that to pin the whole blame on them is unreasonable.
Sara Jevo
17-Jul-10, 08:55
Selling sub-prime mortgages wasn't wrong, no.
But the conflict of interest clearly was.
They sold products to clients, knowing that the partners in the deal expected their value to decline.
It's like going into a shop to buy a lottery ticket. The shop-keeper knows the tickets aren't winners but sells you them nonetheless in order to take your money off you.
I think RBS lost about £800m buying this garbage from Goldman.
Goldman Sachs alone aren't to blame for the recession, no. But the arrogance of their CEO is breath-taking.
They're all as greedy as each other - Goldman simply got caught. The EU is investigating Goldman for conspiring with the Greek Government to fiddle the figures upon which Greece's entry to the Euro was agreed some years ago.
And, why did Goldman Sachs offload 4.6M BP shares just before the rig exploded?
This is the company whose CEO says they are doing "God's work".
The devil's work, more like. Hell would be too good for these greedy, slimey, good-for-nothings.
Agreed. Any mention of God by your run-of-the-mill capitalist and you can bet they're about to do the most unChristian thing they possibly can, which they obviously did. Shocking really. Meanwhile, I'm sure all the folk sleeping in their cars will completely understand that they were just trying to make a buck.[evil]
Perhaps it is time for the UK Gov. to start an international villification and witch hunt to demonstrate to the septics that they are not the only ones that can. :mad:
Interesting- I had almost the same conversation as Alan's threads at dinner last night with a city analyst. How did I counter it? My argument is that too much of globalisation has a direct effect on ordinary people who played a passive role in their fate. yes we all got a bit too carried away with the 'greed is good' mantra of the Thatcher 80's- without taking on board that Mrs T disapproved of credit and wanted the nation to be thrifty savers.
then came the 'everyone has a right to own property' mantra- which didn't take into account that owning property brings with it responsibility- and that mortgages need to be paid and roofs mended etc.
The sub prime mortgage scandal cannot be laid directly at the door of Goldman Sachs- that hedge fund simply forecast that lots of ordinary people would bite off more than they can chew- but had the Bush administration been tougher on the US banks, and had brown listened to Alistari Darling's warnings, we might be in less of a black hole.
They sold products to clients, knowing that the partners in the deal expected their value to decline.
Yes, but that doesn't mean they caused them to decline, they merely wanted that outcome.
It's like going into a shop to buy a lottery ticket. The shop-keeper knows the tickets aren't winners but sells you them nonetheless in order to take your money off you.
No, it's more like me going and buying a lottery ticket, and the lottery company selling me it hoping it's going to lose so they don't have to pay out vast sums of money.
And, why did Goldman Sachs offload 4.6M BP shares just before the rig exploded?
If this is true then: there are coincidences everywhere if you look hard enough. Case and point: http://www.school-for-champions.com/history/lincolnjfk.htm
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