You know what they say, "First, they came for the sellers of collateralized mortgage obligations, who made bets against the same securities they sold to clients." Oh, they don't say that? Because it never, ever happens?
The Justice Department says after a "careful review" it has determined there is no basis for bringing a criminal prosecution against Goldman Sachs or its employees in regard to allegations set forth in a congressional report.
In an unsigned statement from the Justice Department issued Thursday night, it said the department conducted an exhaustive review for more than a year examining allegations in the Levin-Coburn Report.
Headed by Sen. Carl Levin, D-Michigan, and Sen. Tom Coburn, R-Oklahoma, the 635-page report in 2011 singled out Goldman and Deutsche Bank as examples of Wall Street firms that reaped huge profits by marketing securities backed by subprime mortgages as safe investments to clients, even as the banks bet against these very same securities.
In fairness to Goldman, it's simply not true that top executives haven't been punished for wrecking millions of livelihoods. Mark Patterson, a former Goldman Sachs V.P., is currently Treasury chief of staff to Treasury Secretary Tim Geithner. The chair of the Commodity Futures Trading Commission is former Goldman partner Gary Gensler.
Sounds problematic? It's a case of you say tomato, I say tomahto. You say, "revolving door cronyism," Goldman says "creative community service sentencing."
Photo by Jin Lee/Bloomberg/Getty Images
Tags: Crime, Department of Justice, Goldman Sachs, SEC