Goldman Sachs and Others Lie

I've noticed that Goldman Sachs has been blitzing the online national newscasts with commercials claiming that their investments are extremely beneficial to various communities around the country. The whole thing appears to be an effort on their part to untarnish their shabby image. Let's keep in mind why they have a shabby image. Below are a few of the fines or settlements they've paid for wrongdoings.

$550 million for "misleading investors in a subprime mortgage product just as the U.S. housing market was starting to collapse". Business Ethics, July 15, 2010. The SEC stated that investors lost a total of one billion dollars. The SEC charge was "civil fraud".

$27 million for failing to notify the U.K. financial regulatory agency about the investigation resulting in the above $550 million fine. Such disclosure is required under the U.K.'s reporting obligations for financial activity. Robert Barr, "Goldman Sachs FINED $27 Million by U.K. Agency", Associated Press, 9-9-10.

Two million dollars for "violating a waiting period for marketing an IPO before a registration became effective". Ari Weinberg, "Wall Street Fine Tracker", Forbes.com, 7-15-04.

$45.5 million for "NYSE rule violations" in various market activities. Ari Weinberg, "Wall Street Fine Tracker", Forbes.com, 7-15-04.

Citigroup also has been fined millions of dollars for NYSE rule violations, as have Morgan Stanley, J.P. Morgan Chase, and Bank of America. In fact, dozens of Wall Street firms over and over have been fined millions, sometimes billions, of dollars for misconduct related to market activities. Some of these same firms are the ones to which Hank Paulson convinced Congress to give hundreds of billions of dollars.

A final note--- don't be misled by reports (usually by the national Corporate Media) of Wall Street firms or auto companies "repaying" their government loans. They borrow more money from the government and use that to "repay" previous loans; that is according to several Republican and Democrat lawmakers in DC. These same lawmakers predict that the government will lose $30 billion on loans to General Motors alone. Of course, by "the government" these folks mean the taxpayers.