The SEC is under investigation by their own Inspector General, H. David Kotz, to determine whether the timing of the filing of the fraud case against Goldman Sachs, it's subsequent announcement, and/or the case's recent settlement were in any way motivated politically or by agency leaks to the New York Times and other media outlets. The SEC has denied any political motivation in the filing of the case, but it certainly was awfully convenient timing.
Partly at issue is the timing of the New York Times piece announcing the case. The SEC announced the case at 10:35 a.m. on April 16, and the Times had a full blown piece written and posted on the announcement a mere four minutes later. Hmmmm....
The inquiry also focuses on Representative Darrell E. Issa's assertion that commission officials leaked details of the case to The New York Times before it was formally announced, and whether the settlement timing was influenced by an article in The Wall Street Journal.
The Journal article at issue is one in which Goldman Sachs reportedly bragged to the Journal about how they "bested the SEC" in the settlement negotiations. It has been asserted by Rep. Darrell Issa (R-CA) that the agency then agreed to a hurry-up settlement to avoid looking stupid and to be able to announce the biggest settlement in agency history.
No word on the penalties if it is determined that the SEC acted improperly. For that matter, how would you punish someone who works for the SEC? They've already got the worst job in the world. It's like that old joke: First prize is a week in Cleveland. Second prize? Two weeks in Cleveland.
All joking aside, the timing is pretty suspicious and the news was obviously leaked before the announcement. Anyone think there might have been White House involvement in this issue?
One part of me wants to say that maybe the Times got a heads up about it from a low-level insider and couldn't verify much so they didn't want to speculate and in the end everything that was leaked to them turned out to be true so only minor, if any changes, to the story had to be made. On the other hand, I absolutely think BO and Company wanted to make it political. They've done it before, why would they stop now? Also the settlement was announced right about the same time they got done shoving financial "reform" through the Congress so now BO and Company can put on their best ties and strut about and 'show how we stand up to Wall Street, etc., etc.'
They are investigating because the SEC actually did something good, they SUCCEEDED. And by that I mean they actually got a big chunk of change without having to go to court, and got a received a record fine. That my friends is a victory for the SEC.
"Wait, we (the government) are actually having Goldman give us a sh*t ton of money? No way! We don't look like huge idiots, only small ones!!! Yay!"
For the record, it took WSO sixteen minutes to figure out what was going on and get it posted, and the market was already in free fall. And I'm on the SEC's distribution list.
I gotta start making better payoffs.
I definitely get a feeling that there was White House involvement in the ordeal throughout. The timing, as many argue was coincidence but I just find it rather convenient to have Fin Reg Reform going through Congress, and at the same time, the bank with the biggest sack on Wall Street getting grilled by the Congressional Hearings and SEC.
Doesn't seem to be independent.
I am actually slowly beginning to warm to the Socialist Progressive movement after reading stuff like this. Their hand in hand dance with the media has been so well correlated and so thoroughly executed that Pravda at its Stalinist peak would have been able to learn a thing or two from them. Naturally, calling any of them the Marxists they are, is going too far, being extreme, radical, racist, flying a confederate battle flag while beating your wife-sister, living in a forest sniping cute little racoons for pleasure while using their fur for insulation of your trailer.
Perfectly played, indeed.
Whether its the SEC with Wall Street or the IRS with Main Street this is all just one big fancy dance to squeeze a few extra boogers out of George Washingtons nose.
Anyone who doesn't see the White House's fingerprints all over this one gets a complimentary bib and pacifier. They said "change is coming"...I just didn't realize it would be "spare change".
wheres NOBAMA on this issue... tome the White House seems to be involved
I see a strong resemblance of the SEC to the FIA (or vice versa). Perhaps the US media took some pointers from the Italian press from the 2007 Spygate scandal. Lloyd Blankfein looks a lot like Ron Dennis here, and perhaps Washington is a more valiant (and less promiscuous) version of Max Mosely.
The way I see it, it comes with the territory; whereas the original conception many years ago may have been innocent and all in good faith, but while the institution gets bigger the problems will only get more asinine. In these days I just have to accept that there will be another FIA vs. McLaren or another SEC vs. Goldman Sachs. There is too much money and power in those entities for there not to be any corruption or politicking. Despite all the madness, I still set the DVR for 4 AM Friday through Sunday and I read the Wall Street Journal every morning. So, my interest is still present but I know what to expect in the future. Maybe if Goldman Sachs' logo were rosso corsa red instead of a light blue this investigation wouldn't have happened in the first place[/sarcasm]. So I say, "Let it happen because everyone likes a good circus show from time to time and it’s not going to change."
Apologies if the analogy didn't register.
I think there is a strong chance that the SEC vs. GS case was related to the financial reform bill. Without a doubt, it was leaked. That is obvious. It will be interesting to see what comes of this.
I'm amazed at how little notice/discussion there has been of the fact that literally every single major event in the case - from the initial announcement (that drove GS down 10% in a day) to the final resolution - occurred a Thursday. And not just any Thursday - every single time it was the Thursday prior to the monthly options expiration.
I'd kill to know who was buying free way-out-of-the-money puts on GS in the hours before the announcements.
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