Senate Hearing: Sen. Levin vs. Lloyd Blankfein, Goldman Sachs

[ImaginedWriter]

Someone kill Blankfein.

[BobDoubelina]

I hate the GS guys, but in this case Blankfein has a valid point.

There is really nothing wrong with going short against a position you sold to a customer.

As a customer I can figue out that the paper is crap if they only ask le's say 22 cents on the dollar. And if I know that, then its obvious that someone is gonna go short on these.

So it might as well be GS themselves. As a GS customer i would know that Im not their only client and, yes, that they do have own interests......

[zorax15]

@BobDoubelina question is if GS told the costumers the papers ware bad OR they intentially did not tell them so they could get rid of the crap and additionaly make money by betting against them.

This is no consulting I would expect a bank to do. In fact it isn't consulting at all just pure greed.

But as long as long as the financial sector is not regulated there will be a good chance that we will see things like this and wallstreet caused depression in the future again

[BobDoubelina]

@zorax15 That is what most people dont't get.

Bankers speak in a diferent language. They describe the obvious, but don't say it.

Their way of saying "Hey, the paper is crap" is : "We offer you the paper for 22 cents on the dollar".

If I want to sell my car and someone is willing me to offer "an apple and an egg", that doesn't mean literally a sales proposal. Its just that person's way of saying "Your car is crap".

[BobDoubelina]

@zorax15 People just think "Hey 22 c/$ sounds risky, but he is offering it to me, so must be good".

No. Bankers will present you the facts and you have to draw some conclusions yourself.

But I agree: IF they said to the customers who wanted low risk papers "These are the ones to go for", then they were acting wrong. But then its bad counselling. Still nothing illegal with the short sells.

However I would've asked my banker why they would sell the stuff at that price if it was a low risk

[zorax15]

@BobDoubelina it is not that easy. There are many papers that are underrated and there are many papers that are highly overrated. For someone who is not into the whole stock exchange envirnonment 24/7 it is hard to tell which one is which. And this is the part were counselling comes into play. And in my opinion it is the banks respnsibility to inform their customers about the background of the papers. This was obviously not done. I don't say the GS acted illegal by not counselling

[zorax15]

@BobDoubelina but it is my opinion that GS were only interested in their own profits and shit on their costumers even though they knew that the customer actually made a bad deal. But this is just the tip of the iceberg. It just fits into the picture the financial sector presents when looking at the CDOs that were created and rated AAA.

But to be fair it is not the bankers fault, it is the politicians fault how deregulated the market for decades and now struggle with the outcome.

[zorax15]

@BobDoubelina what I don't get is why there haven't been any changes made to prevent perverted betting and transactions with high risk for the future. In fact nothing has changed. Not anything that lead to the desaster in 2008 has been changed and the financial sector can still count on being bailed out because they are too big to fail. It is just disgusting. And the mentality that caused the propblems is presented by Blankfein. That's the reason I'm so disgusted with his answers.

[BobDoubelina]

@zorax15

Hmmm so you want to regulate the markets...... The gouvernment should control/watch..

That is not "free market economy"

Sounds more like commie-talk to me ;-)

Not long ago any demands for such things as federal regulations of ANY market would have triggered the HCUA/HUAC....

Nah. It is culturally inconceivable that the U_S would take any serious regulatory steps on its markets...

[zorax15]

@BobDoubelina It is no commi talk. The deregulation of the markets in the US started in the 80s. I don't think that the US was communist before that. But you can still believe in safe CDOs, rating agencies telling the truth, and biddings on food, the collapse of currencies or nations.

Exchange Supervisory Authority is also a regulating tool in the stock exchange. And nobody's complaining about it.

[zorax15]

@BobDoubelina But I think you're right and I should avoid going to the US for a while after I've posted such comments on the internet ;)

[aaronfromhastings]

Hey, Blankfein, could ya really squirm and make it look like you're really embarrassed and struggling? Do ya think you could do that? Then all those fuckin idiot blue collar workers will feel like justive is served and we can get back to business as usual. See ya in the restaurant after. Remember to act really worried.

[Ralphdraw3]

@aaronfromhastings Goldman Sachs FRAUD Charges Filed By SEC Over Subprime ... Jun 16, 2010 – The government has accused Goldman Sachs of defrauding investors by failing to disclose conflicts of interest in mortgage investments it sold . ... ..Simon Johnson: Our Pecora Moment Has Finally Arrived With Fraud Charges Against Goldman Sachs

We have waited long and patiently for our Ferdinand Pecora moment - a modern equivalent of the episode when a tough prosecutor from New York..

[ContraCommando]

Fuck these old ass white nerds.

[Ralphdraw3]

@ContraCommando You have just inherited a country where half of the people live in poverty; 54 million children live in poverty; and Wall Street executives make a salary of between $10 million and $100 million a year.

[ConstantineJoseph]

Its not a racial problem you bafoons. Its the problem with the company and the goons running the show.

They've put all their ex employees into the political arena, worldwide. This is a scam.

[dh363msb]

Sorry, but Blankfein is absolutely right here. It's not a conflict of interest at all.

[SUPERSTUD6000]

this anti semitism is just fucking stupid.

yes there is a zionist movement in our government, but it is not exclusively jewish and most jews are not zionists.

there is a very logical reason more jews find themselves in power more than any other ethnicity.

they have a culture that focuses on taking care of their family.

ever heard of a barmitzvah?

it is an outstanding concept to give people a financial boost when they grow up.

lloyd blankfein is a piece of shit for sure though.

[anasthase100]

.

==> Jewish mafia who need guillotine as well . . .

.

[WallStreetIsMine]

i love goldman sachs and its a competitive market not everyone can win.... get over it!

[lokeylatelycl]

why isn't anyone doing anything about these guys? all of them, not just GS

[Ralphdraw3]

@TheSpeckofdust Actually Hank Paulson, formerly of Goldmand Sachs and later Secretary of Treasury under GW Bush, is not a Jew.

[nesNYC]

@Ralphdraw3 Right neither was Kashkari. They'll have their token Goyim here and there throughout the firm but make no mistake, it is a Jewish enterprise.

[anasthase100]

.

that's a tyranny made by Jewish banksters

[Ralphdraw3]

@anasthase100 BTW Senator Levin is Jewish - and he is slamming ( in hearing after hearing) corruption on Wall Street.

[bobjimjones]

@anasthase100 don't be jealous just cos jews are smarter and more successful on average. plenty of 'good' jews out there too.

[newsubject89]

Government Sachs

[gsapp59]

Oh my god you people are dumb, including Levin. There is absolutely NOTHING wrong with this. How do you not get this? If you take a basic example of Ford stock and someone uses Goldman to buy it from their inventory and Goldman is also short that isn't a conflict. Maybe you are buying to hold for 2 years and Goldman is shorting an overbought spike. The same principle applies to credit default swaps.

[cashman534]

@gsapp59 but it wasn't ford stocks. it was subprime mortgages that Goldman Sachs knew would fail. But by paying the credit rating companies to show that the loans were extremely secure, fooled everyone into thinking they were good investments.

It equates to a used car salesman selling a load of shit to an unsuspecting mother with kids, and telling her it is the best thing since sliced bread. Then she gets out of the parking lot and the car breaks down never runs again.

[gsapp59]

@cashman534 If you buy an investment it is your responsibility to understand it and accept all risks that go along with it. The ratings agency recommendations should literally mean zero to a company like AIG. If they had that much exposure it is 100% on them to do their own DD. Not 99percent, 100 percent. There is no excuse ever to have so much exposure to anything that you could blow up. Also is Goldman Sachs supposed to look out for the financial interest of their competitors?

[gsapp59]

@cashman534 First, Goldman Sachs wasn't the only market maker for CDOs. And who says they fooled everyone? I'm a big anti-bail out person and would have loved to Goldman Sachs go under in 2008. This behavior, however, is not wrong and is accepted operating practice on Wall Street.

[cashman534]

@gsapp59 You're right there was plenty of people who sold CDOs. Just because it was accepted doesn't make it right. I know business is business, but look what happens when you look out for yourself and don't give a damn about the rest of the world. That's not my nature, I want to see everyone do well. Not just me.

[bentley7977]

Sen. Levin you tell this shit bag, i like him to try and rip me of the little shit i'd pull his little shity head right off

[dukeownsyou]

how did this crook not get thrown in jail?

[Ralphdraw3]

@dukeownsyou I believe that the FBI and SEC are investigating Goldman Sachs. Blankfien has hired a criminal attorney.

[dalecampbl9]

@Ralphdraw3 TOO BAD ALL TIS HAPPENING TOO LITTLE AND TOO LATE!!!! I"M OUT OF A JOB AND I"M PISSED AT EVERYONE WHO CAUSED THIS RECESSION.

[Swissbanker77]

Another example. If you go to the supermarket to buy junk food, the supermarket will sell it to you REGARDLESS of whether or not they think it's crap food or not. It is YOUR decision whether or not you want to buy it, and whether or not you want to take the risk of becoming obese. The supermarket has no business in telling you what it's opinions are about a particular food.

[disandthat]

@Swissbanker77 Nope, if a supermarket sells junk to its customers, and some of these customers get sick, they can sue that supermarket. Do you know anything about the lemon law? A car salesman cannot sell you a piece of crap car.

[Swissbanker77]

@disandthat Yea, a supermarket can't sell old expired food but represent it as food new enough to eat. A car salesman can't sell a broken car but represent it as a car in good condition. A broker can't sell shares of XYZ but represent it as shares of ABC.

[Swissbanker77]

@disandthat However in this case, Goldman's client, ACA Management, got EXACTLY what they wanted, which was a bet on the subprime mortgage market. They agreed to sell insurance for a specific mortgage portfolio named "Abacus". Then the housing bubble burst and the subprime mortgage crisis ensued. ACA lost money, and Paulson & Co. (Goldman's client on the other side of the bet), made money.

[Swissbanker77]

@disandthat Goldman didn't sell ACA a broken car. They sold them a bet on subprime mortgages at the top of the housing bubble, which ACA wanted. ACA, like many other insurance companies, ignored the housing bubble and the huge risk in the mortgage crisis, and that's why they lost money. Same reason why AIG went down. Same reason why Lehman Brothers went down. Same reason why WaMu went down.

[Swissbanker77]

Guys, it's a BROKERAGE OPERATION. To anyone here who has invested in stocks: when you want to buy a stock, whether you use Scottrade or TD Ameritrade or Schwab. When you make an order to buy shares in your account, you get your order filled REGARDLESS of what Scottrade's opinion or TD's opinion is on your particular stock.

[braemstabraemsta]

jesus christ this senator is a complete moron

[quanta412]

@braemstabraemsta You watch this and say the Senator is the moron? Man o man you are woefully ignorant.

[Swissbanker77]

@quanta412 No, it's people like you and most people who are commenting here, who are ignorant. It is unbelievable that people cannot understand how financial markets, market making, and brokerage operations work. Simply unbelievable.

[disandthat]

@quanta412 quanta12, braemstabraemsta is most likely a a WALL STREET inside; he's part of the 1%.

[disandthat]

@quanta412 Braemsta is a wall street insider

[radonlads]

the guy is a master in saying nothing.

[rambo753]

Read all the books written along European history about Jewish behaviour in business.... and you'll find perfect match with what they are doing now

[4JayeP]

Can someone translate with Lloyd said into English? Sounded like pasted a bunch of words together that made absolutely no sense.

[7691yazan]

Look at it like this should Google get charged for putting websites about child porn, no, right, so why should the bankers. I think that all the fuckers that blame the bankers and say it’s the tax payers that balled out Wall Street, well it’s not. You people got your ass into the hole and you people suffered the consequence of paying it from your pockets.

[7691yazan]

I really get pissed off when people say it’s the bankers, it’s the peoples fault not the bankers. The bankers don’t point a gun at people’s heads and say buy homes that they can’t afford. It’s not the banker’s responsibility to even tell them about the homes that’s the responsibility of the realtors. People should do their own home work about the stuff their getting into.

[eyesontheworld]

What a bumbling stuttering fuck Blankfien is when he is on the spot. He would fire any shmuck at GS is they didn't give him a straight up answer of being a fuck up... Just look this sorry prick. At least he is happy with his pile of money basking his lizard blood in the Florida sun now...and you wonder how anti Semitic attitude is brought to these thieves in suits.

[sidewinderxx]

shouldn't they cover whether or not GS was playing an advisory role or just a trading role?

If they were just trading, then it's up to the client to make the decision. If they were advising, they're guilty.

seems black and white to me

[meerfisch1]

@sidewinderxx They were playing an advisory role. They were told to even sell that crap to their grandmothers if necessary just to get rid of it. Thats proven fact.

[rambo753]

Levin jew

Blankfein jew

[Seasass]

@rambo753 Levin male, Blankfein male. Levin white, Blankfein white. Levin American, Blankfein American. Levin human, Blankfein human. (In other words, what the hell is your point?)

[meerfisch1]

@rambo753 ...Madoff jew, Greenspan jew...

[rambo753]

@meerfisch1

and Bernanke and Volcker.... and Geithner... Rubin, Summers.... Axelrod... and the list goes on and on

[MegaYouri13]

Levin assumes that 1. investors don't know how to make investments and hence are at the whim of Wall Street. 2. That investors are not actors in the market and take losses and gains just like every other risk taker. 3. Goldman Sachs has the ability to change the mind of an investor on a bad stock if they wanted to buy it all along.... you don't have to buy a stock, bond or investment product.

[mindormood1]

This senator doesn't know anything about the basics of how the financial market works (e.g. separating the process of selling and betting against while they are really one process. Confusing fiduciary parts with market-making parts of GS's business. etc...)... But they are so good with using incendiary words to win idiotic Americans' support. What a pitty...

[Ralphdraw3]

@mindormood1 Could you explain the role of the Credit Rating Agencies - particularly with regard to the rating of CDO's?

[20Proff]

@Ralphdraw3 The banks had leant money/credit mortgages etc. to all the people who were deemed as being able to repay. That's lending to people with AAA+, AAA, AA+ etc. Then, they wanted to lend out more so they leant to people who it was deemed couldn't pay. So, when one big company buys them, they buy a bunch of them. Hence, you have some well rated and badly rated ones in one bunch. So the rating agencies used the good ones in a bundle with the bad, to make the bundle look better. Revolution.

[Swissbanker77]

@Ralphdraw3 Yes. The credit rating agencies (Moody's, S&P, Fitch) rated many of these mortgage backed securities as AAA investments. AAA is the highest possible rating and it means "extremely safe". It's hard to get a AAA rating. For example, even the U.S. Government lost their AAA rating a few months ago from Moody's or S&P (can't remember which one). There are only 4 corporations in America that have a AAA rating.

[Swissbanker77]

@Ralphdraw3 But all these mortgage backed securities were given AAA ratings with a simple, albeit false, premise: that housing can never go down. With this assumption, the rating agencies blindly assigned AAA ratings to many securities, all the while missing the pending collapse, much like most other parties missed the collapse. Many pension funds and mutual funds who only buy AAA rated securities bought all these securities without thinking twice. Hence, many of them got screwed.

[azar24701]

@mindormood1 im not a finanical adviosor but even if it was one process or not, its a still a conflict of interest because Goldman's Sac client has no idea where there money is being put when a firm sells it short on a deal. That can cause alot of problems for the buyer and give the seller the advantage. Why would u put ur trust into a system that may not work 4 u but might ony work for the corp itself?

[mindormood1]

@azar24701 From my understanding, Goldman was a broker in this deal. And it acted just as what a broker would do--Goldman bought the security (ABACUS) from the seller Paulson&Co, and sells it to these institutional investors. These investors lost money not because their counterparty is Paulson&Co, but because they don't understand how risky ABACUS really is. It is indeed the responsibility for Goldman to disclose what the terms are related to ABACUS, but it is not ...

[mindormood1]

@azar24701 but it is not the responsibility of Goldman to tell who the counterparty is.

[azar24701]

@mindormood1 im not a expert on Goldman's SAC, in sum ways i see truth in your statement. But flip the coin and see the other side of my view. If what your sayin is true then there should atleast be sum government regulations within the system because to me if everything is hidden from the media and the public then who knows where the transaction may be goin. Look at where Goldman's Sac right now. don't forget the evidence and proof in the email that was has been transfered within the corp.

[azar24701]

@mindormood1 fine, i can dig that, but 94 percent of corps are more corrupted then corps in World banks in the world. So u tell me suttin shldn't there be any regulation from the government to put a stop to greed. Obvously they are screwin us over.

[TMundo]

@mindormood1 Just because it's one process, doesn't make it right. One process, two separate processes, it makes no difference, it is wrong and it is part of the problem with the financial system in the US. Just because it's legal, doesn't make it right. Not to mention, members of the government received ample warning of how for years and years of how this process was destroying the US economy and did nothing to stop it. Not to mention, it isn't basic process, it was re-introduced recently.

[yoda002]

@mindormood1 It seems like your bought into the snake oil they were selling..hook, line and sinker.

[BOOLsheet]

the real problem is that the american people dont understand the way the financial industry works and is regulated and they elect people who dont put regulations in place. goldman did nothing wrong, unless they influenced (improperly) the ratings agency

[3888799]

to me this just looks like acting, nobody went to jail, we put in regulations like the dodd frank act which nobody enforces. well done congress, you guys should get an oscar!!!

[MartellusCarolus]

I honestly hope this dickhead will be jailed for the rest of his fucking life, after compensating the customers he screwed over.

[ledjorge]

America is doom, and is making the dependent world shit. It is time to face it.

[Marius26879]

Kike Bankers screwed you alll up the ass

[austr8lia]

Blankfein, Is a vile traitorous rats that will end up in prison, when that happens that smurk on his pathetic bald ugly fucking head will soon disappear. There isnt a woman on this planet that would find this rat parasites attractive he is 1 of the ugliest looking pricks ive ever seen, his whole family and bloodline are that of rats and back stabbers, scum scum scum and scum.. a used car salesman who turned to theft and traitorous activity , he will pay dearly..

[a13solute]

dude these guys are the white boy white wash mafia, banking cartels, man straight criminals, these are guys are just incorporated bookies lol!

[luchpockets]

Lloyd Blankfein, Goldman Sachs is so full of Shit !

[OregonDARRYL]

Anyone who comes in here and defends lying pieces of shit bankers is a motherfucker who needs to die. It's greedy cocksucking assholes who are destroying America. And we all fucking know it. Fuck Goldman-Sachs, and fuck this lying piece of monkey shit. I'd like to drive my fist through his ugly bald, nasty fucking ape-face. LIAR! Liars need to be hanged until dead. These fuckwads come to congress and lie or can't remember anything. They are fucking this country over good. Hang 'em! Traitors!

[qwertypluss]

@OregonDARRYL I'm a futures trader. Are you mad of my salaries you punk? Are you mad I have a better looking wife and a bigger salary than you'll ever have? I laugh in your pathetic inferior face.

[OregonDARRYL]

@qwertypluss No, I guess I'm mad that there are just way too many cocksuckers like you fucking over their own country. Don't worry pal, we'll catch up to you guys one day. Oh, and fuck you - you greedy cocksucker, and all you cocksucking pals. BTW - I didn't have to buy my woman.

[qwertypluss]

@OregonDARRYL Are you mad that everything in my life is better than yours: my looks, my health and fitness, the food I eat, the house I live in, the woman I make love to at night. Everything. Just because you didn't get the grades, and don't have the intelligence to work in an investment bank doesn't mean you can cry about it to me. Dude, I'm better than you. Face the facts and show me some respect.

[Ralphdraw3]

@qwertypluss You must be very proud of Wall Street. And the financial collapse of 2008. Which has resulted in a global recession, millions of foreclosures and a 9% unemployment rate. You guys on Wall Street sound like con artists.

[qwertypluss]

@Ralphdraw3 But I walk away with a $2.4 million bonus. Gotta look out for number 1. I didn't personally cause it did I?

[Ralphdraw3]

@qwertypluss I suggest you read Lewis's Liar's Poker. And what "wealth" did you create for a $2.4 bonus?? It doesn't seem much different than winning by gambling on football or basketball or horse races. We now have Over 9% unemployment - $14 trillion national debt - millions of foreclosures - over 100 banks failing - increasing rates of poverty - and you got a big bonus???

[qwertypluss]

@Ralphdraw3 I'm the futures trading and YOU'RE telling ME to read Liar's Poker? Haha. What wealth did I create? I added liquidity to the markets, determined prices for securities (which helps IBD and valuation). Other than that, nothing. And you know what? I don't give a fuck. Don't hate the player, hate the game. I'm taking advantage of the game, and I'm living an incredible life.

[AsSomedayItMayHappen]

@qwertypluss Your incredible life which consists of trolling on youtube.

[klewieblu]

@qwertypluss TROLL!!!TROLL!!!TROLL!!!TROLL!­!!TROLL!!!TROLL!!!TROLL!!!TROL­L!!!TROLL!!!TROLL!!!TROLL!!!TR­OLL!!!TROLL!!!TROLL!!!TROLL!!!­TROLL!!!TROLL!!!TROLL!!!TROLL!­!!

[klewieblu]

@qwertypluss FOS!

[qwertypluss]

@klewieblu No idea what that stands for, I'm not an internet nerd unfortunately.

[qwertypluss]

@OregonDARRYL Oh my goodness.. I just had the displeasure of viewing your pathetic posts to me and clicked your link to your video and saw your disgusting old face and ugly moustache, LOL. How old are you, are 40 year olds even meant to be using YouTube. Sorry now I just pity you, I'm only 24 years old and earning more than you'll earn in a lifetime. Seriously I fucking pity you. Woah, man I didn't know you're old enough to be my father. I'm not going to bother with you oldie, you're to frail.

[LTACS]

you all have the power to  believe whatever you want to.

[LTACS]

none of you know anything about finance.

[OregonDARRYL]

Listen to what this crook says.... he basically says that their "clients" are their "OPPOSITION"!!!!! Who would give their money to someone to invest if the dumbass says he is your enemy? Listen again... he says he is against their own clients. His own words. NOW, YOU KNOW. THEY ARE YOUR OPPOSITION. They exist to TAKE from you. Period.

[LTACS]

@OregonDARRYL you need to go back to kindergarten

[OregonDARRYL]

@LTACS Go suck your daddy's dick again asshole. It's motherfuckers like you who steal and rape and pillage and say... hey, it's just business. Well... fuck business and fuck you. This country is going down faster than you go down on truckers at the truck stop. Asshole. Fuck you. Fuck with me again, shithead. Bet you won't.

[OregonDARRYL]

Liars and thieves are destroying America. Get ready for the revolution, where the American people take it back from the mother f#@kers.

[rcdanger]

Levin or Blankfein: I know who I'd rather have running the country

[whatndas]

@rcdanger who? They both are the same, crook!

[OZDE32]

Jewry... it will tare down everything beautiful in this world and make it a prison for everyone non-jewish

[worldismorphing]

Now that brings "being full of shit " to a whole new level...

[goog2k]

@mistara31415 LOL!!!

It's really funny to hear an AYN RAND/Ron Paul wacko trying to rationalize the CRIMINAL behavior of Wall Street so he can argue against government regulation.

Read "Griftopia" by Matt Taibbi. I especially like his chapter about Greenspan, another AYN RAND groupie, "The Biggest Asshole in the Universe."

(BTW, I've seen all the same info on PBS Frontline, "The Warning" & others, and in films like the Oscar winning "Inside Job" but it's well summarized by Taibbi.)

[kemchobhenchod]

@goog2k their arguments wouldn't make any sense except they're right. blame unfortunately lies with the american public.

[goog2k]

@mistara31415 Sorry, you're NOT listening to Levin, who knows EXACTLY what he's saying.

There is nothing wrong with investing in the stock market, but Goldman had a direct "conflict of interest" because THEY were selling Mortgage instruments (which pay interest) that Goldman paid to get rated AAA, and then Goldman BET they would go DOWN because they were GARBAGE.

[goog2k]

@mistara31415 Goldman was paying S&P to rate their phony packaged securities AAA. Then they SCAMMED pension funds and other international investors and "Shorted" the same securities they were selling by betting they would FAIL!

That's called "Conflict of interest" & FRAUD!

They all belong behind BARS!

[luchpockets]

@goog2k, you are absolutely correct, this was an orchestrated sham and scam, no two ways about it !

[goog2k]

@luchpockets

For PROOF see the Oscar documentary "INSIDE JOB!"

Or read "Griftopia" by Matt Taibbi, a Rolling Stone journalist. I love Matt's chapter on Greenspan, "The Biggest Asshole in the Universe" & his last on all Goldman Sachs' criminal SCAMS!

Or watch online "The Warning" & "Inside the Meltdown" on PBS Frontline.

S&P fraudulently rated Junk Bonds "AAA" because they were getting PAID $Millions to do so, and even rated Lehman Bros & Bear Stearns "A okay" days before their bankruptcies?