Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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Well our mamby pamby Gov't has done it again, selling out the little man in favor of a large corp by this $ 550 mil settlement with Investment Bank Goldman Sachs over its sub prime mtg business operation.  This isn't even lunch money to Goldman, and they made so darned much more $$$$$$$$$$ from their involvement in this charade, that this settlement is downright shameful.  

The fix is in as this settlement should have been billions, 1-2-3 or more, at a minimum.  I wonder if there is any connection that this settlement comes one day after a meeting between the POTUS and Warren Buffet, a huge supporter of the POTUS and a huge shareholder of Goldman.  Nah, they wouldn't do that to the little guy would they?  I'm sure Buffet filled his ear with how terrible a huge settlement would be to the overall mkt and economy and settling this thing would be so much better for everyone, blah, blah, blah.  Horse$hite.  This is a travesty, once again, dammit!!!!!!!!!!

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http://online.wsj.com/article/BT-CO-20100715-714313.html

"The SEC said Goldman will pay $550 million and reform its business practices to settle charges the firm misled investors in a sub prime mortgage product, known as a synthetic collaterized debt obligation."

"Goldman agreed to settle the charges without admitting or denying the allegations "by consenting to the entry of a final judgment that provides for a permanent injunction from violations of the antifraud provisions of the Securities Act of 1933," according to the SEC's release."

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Sara
Yeah and according to CBS news, right after they agreed to pay this their stocks went up.    I just don't get it...

S
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Yes, Goldman stock is up on the day, and what that tells you is that the institutional investors who are buying loads of the stock (driving up the price) anticipated a much larger settlement or verdict against them.  

The stock had been discounting a settlement into the BILLIONS and when the "pocket chg" amount of $ 550 mil was announced the stock went up initially almost 5% (appx $ 7 to 8 per share) in price.   Another way to put this is, Goldman has a mkt capitalization (total value of its shares) of $ 76 Billion and when the mkt moved its value up 5% that equals just over 3 Billion in increased value to the company.  So what that says is, institutional investors have been discounting the stock at least 3 Bn, maybe more.  All this comes on a day when the overall Dow and broader mkt is down 2.5% and Goldman is up 3-5%, so if this had hit on a day when the mkt was up overall, the increase in Goldman shares would have been much larger.

So you don't have to be a financial analyst graduated from Harvard to understand that the SEC let a big one get away here by settling this thing for a pittance.  Lousy b*stards, is the nicest thing I can say about em.  grrrrrrrr.
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Ya, another pay off,  the 550 million is only two weeks earnings for Goldman, some deal for no criminal prosecution, how much did they steal?  3-5 Billion by some estimates, Chump change for Goldman.
 
Yet another example of our government not protecting us, the only good thing is it may enrage jury's , lets hope so!
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The Equitable One
I think it is also noteworthy how the $550 mil is being distributed. The source I read (which I have forgotten - apologies) indicated that $250m will go to victim compensation and the other $300m is going into the treasury.

This amounts to an "You give us a cut of the profits (the gubmint) and you won't have to go to jail. We aren't really concerned about the folks you robbed."

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William A. Roper, Jr.
Jonathan Swift summed this problem up in 1707:
"Laws are like cobwebs, which may catch small flies, but let wasps and hornets break through."
The Goldman settlement should come as no surprise whatsoever.  Goldman employees were the largest contributors to President Obama's campaign in 2008.  Our President is bought and paid for.

All of the purported "foreclosure relief efforts" have been a total charade, designed to further line the pockets of corrupt bankers and Democratic politicians using a pretext of helping borrowers.

We have the best President and best Congress money can buy!
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Mr. Roper,

You can say that again.... Our country is turning into "Rich" and "Poor", no Middle Class. We are almost gone, and it's happening real fast. I just feel sorry for my children and my grandchildren...... I hope that one day they can make a difference. By watching me at work, I hope they are learning something. I know that they can hear me, I just hope that they are listening.

cmc
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