Retirement and Investment in Lake Chapala
Goldman Sachs is being charged with fraud by the SEC (Security and Exchange Commission).
CEO of Goldman Sachs, Lloyd Blankfein, has reported a 3.5 billion profit outperforming competitors and remaining on top after weathering the financial crises.
Lloyd Blankfein adds that he is enlisting the aid of former White House Counsel, Gregory Craig to help deal with the ins and outs of the Washington machine during this investigation.
Further Britain’s F.A.S. (Financial Services Authority) their financial regulator, has opened a formal investigation into allegations that the Wall Street investment bank has defrauded investors.
Goldman Sachs profit has doubled to 3.5 billion and out of this they are paying billions in bonuses after receiving tax payer funds. 5.5 billion in salaries and bonuses have been paid which is down from 50% to 43% according to Blankfein.
The charge is that Goldman Sachs was selling sub-prime mortgage related investments in 2007 that were secretly designed to lose value.
The F.S.A. will be working closely with the SEC during the investigation into the Goldman Sachs fraud case.
The SEC has accused Goldman Sachs of structuring and marketing a financial product without letting its clients know that Paulson & Co., a prominent hedge fund, had helped the bank assemble the investment while at the same time placing bets it would lose value. The bank received 15 million from Paulson &Co. for its services.
A poll says that, although Americans do not want anymore government regulation, the one area they do want regulation is in financial institutions at a rate of 2 to 1.
The GOP is planning to filibuster any legislation regulating the financial institutions.
I am no financial genius, but is would seem to me that trust in Wall Street and investment banks is, at the moment, not a safe bet.
It is hard enough to earn enough money to retire comfortably in this or any financial climate without your own bank virtually stealing from you and taking bets against the product they have sold you to fail.
Although the byword seems to be “Too Big to Fail” is this a realistic assessment for institutions that we entrust with our futures?