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| Economy |
| Obama accused of playing politics with the law over Goldman Sachs |
| 2010-04-21 |
| Goldman Sachs was at the centre of a political storm last night as senior Republicans began an investigation into the possibility that the White House colluded with Wall Street's regulator over the decision to sue the bank for alleged fraud. They are demanding proof that the Securities and Exchange Commission (SEC) did not communicate improperly with the White House, the Democratic Party or any Democrats in Congress before suing the bank last Friday for allegedly withholding vital information from investors in the build-up to the crash of 2008. Wall Street and its allies have claimed with increasing anger that the Goldman suit was timed to help the Obama Administration to force Republicans into backing a financial regulatory reform Bill designed to prevent banking crises in the future. However, a letter addressed to the SEC's chairman yesterday, and seen by The Times, is the first formal accusation of wrongdoing by the commission or complicity by the US Administration. The timing of the lawsuit “has created serious questions about the commission's independence and impartiality', the letter states. It was drafted by Darrell Issa, the ranking Republican on the House Committee on Oversight and Government Reform, and signed by seven other Republican members of the committee. The letter adds that subsequent revelations — including details of a vote along party lines within the SEC to approve the lawsuit — have fuelled “legitimate suspicion' that the commission was trying to help the White House, breaching its own ethics guidelines in the process. Mary Schapiro, the SEC's chairman, who was appointed by President Obama, joined two Democrats on a five-member panel within the commission to approve the decision to sue the Wall Street powerhouse instead of seeking to settle out of court — a more normal practice in such cases. In another break with convention, the bank says that it was given “no clue' of the impending litigation. |
| Posted by:tipper |
| #7 "Obama accused of playing politics with the law |
| Posted by: Barbara Skolaut 2010-04-21 22:29 |
| #6 Here's something very few noticed the other day... ABC News' Ann Compton reports: Goldman Sachs has reached into the ranks of the Obama White House alumni for some political protection. Former White House counsel Greg Craig has been hired to advise the Wall Street giant after it was charged by the government last Friday with fraud and misleading its own investors. Politico first broke the story Monday night. Officials at the White House say Craig did not alert them about his decision to take on Goldman Sachs as a client at the law firm Skadden Arps, where Craig now works. Federal ethics rules prohibit lobbying, but Craig may have avoided complications. An administration official explains, "a former White House employee cannot appear before any unit of the Executive Office of the President on behalf of any client for 2 years -- one year under federal law and another year under the pledge pursuant to the January 2009 ethics executive order” signed by President Obama. But the Securities and Exchange Commission, which filed the civil lawsuit against Goldman Sachs, is an independent agency and West Wing advisors believe Craig’s work would not run afoul of the rules IF Craig does not contact the White House. Winky-winky... |
| Posted by: tu3031 2010-04-21 20:00 |
| #5 What Steve said. The real scandal, about which no regulatory or law enforcement agency will do anything, is Government Sachs' $1B sweetheart deal courtesy of Tiny Tim and Barry in which GS was made whole on its entire counterparty obligations, aka losses, to AIG FP. Heads they win; tails we lose. |
| Posted by: lex 2010-04-21 14:09 |
| #4 Airandee, this is all for show. Goldman will pay a 'fine': something in the low eight figures, to be contrasted with the low ten figure profits they've salted away over the years. The Goldman execs will sniffle for the cameras, Bambi and the Dhimmicrats will jam the new financial bill down our throats, and everyone on the left will be happy, most especially Rahm. That's how it works. |
| Posted by: Steve White 2010-04-21 09:14 |
| #3 Here's an old favorite for you Goldman Sachs. Link |
| Posted by: Besoeker 2010-04-21 09:01 |
| #2 We've seen this movie before. |
| Posted by: Procopius2k 2010-04-21 08:58 |
| #1 I have to say one thing about Obama. He is not beholding to the folks who put him in office. Wallstreet leadership backed him solidly in 2008 and now they are not getting what they paid for. Last week discontent from Jewish American voters was noted. Even Gays were heckling him about don't ask and don't tell policy |
| Posted by: airandee 2010-04-21 07:47 |