Friday, April 16, 2010

The SEC's First Major Fraud Allegation Against Goldman Seems VERY Weak

Henry Blodget is reading the complaint against Goldman and the first charge does appear weak. Unlike the SEC press release states, it does appear that a portfolio selection agent did have the final say. Blodget's analysis is here.

Which means the SEC is blowing things way out of proportion, and goes more to the point that Goldman is walking around with a target on its back. I can't imagine this case being brought during Goldman's power-influence days. But for the man on the street, the impression has been made: Goldman committed fraud and Obama is taming Wall Street.

Meanwhile, Jamie Dimon skates under the radar doing whatever it is he is doing.

2 comments:

  1. Hi Robert -

    Yes, I think it's all a mighty smoke screen. There were probably scores of deals like abacus. And the money involved seems relatively small.

    Where's the investigation of Paulson?
    I don't think any of this investigative stuff will go anywhere.

    Goldman is a convenient target now...
    I notice JP Morgan says it's doing real well.
    So now maybe we just have to find a catchy phrase
    for the masses to go stampeding off in that direction..

    A lot of fun can be had this way.
    But I doubt it will make one bit of difference to the end game, whatever that is.

    I think Paul Roberts did the smart thing when he signed off from writing any more.

    Stay on the sidelines and place your bets.
    Time for us to fold and get on with our own lives and let the blind lead the halt into the ditch.

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  2. Is it just me or do these "bombshells" seem to go off right around options expiration?

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