In July 2010 those poor billionaire chaps at the bloodsucking firm otherwise known as Goldman Sachs, admitted no fraud and got slapped with a $550 million fine by the SEC. Should have been ten times the money and jail time, but hey, these same guys stiffed us for a trillion in the “banker bailout” two years ago, so who’s counting.
The first $250 million went to Royal Bank of Scotland and the German bank IKB Deutsche Industriebank AG. The other $300 million will go to the US Treasury. Seems fair that some banksters should get half, don’t you think? Glass half full: Any time you deal with a banker and come out with more than half, well hell, you did alright.
The fine amounted to 14 days of profits at Goldman Sachs. As Adelphi University professor and former Bear Stearns managing director Michael Driscoll put it, “That is a steal (for Goldman)”. Goldman shares and options surged on the news.
On the bright side, it was the biggest fine ever levied against a corporation by a US government agency. And the Justice Department is now bringing criminal charges against Goldman’s Rajiv Gupta. Citigroup found itself recently explaining how it cooked its books. And German police raided every office of UBS (Union Bank of Switzerland) on German soil in a single day, demanding records of wealthy German tax evaders.
Not well rested the heads of Morgan Stanley, JP Morgan Chase, Deutsche Bank and Bank or America, either. All spent the week waiting for the next SEC subpoena and word has it they are forthcoming.