May 1, 2010

But since it's all a giant shell game anyway, and it's likely that the other Wall Street firms are using the exact same practices, why are the stock prices dropping? It's almost as if investors need to believe this was an aberration, and they're clutching the idea like a security blanket. Bad Goldman Sachs!

And here's the real problem: Without factual information and accurate risk assessment, capitalism is a game completely rigged in favor of the insiders. If enough people wake up and stop investing, well, that's a whole other catastrophe:

The Justice Department's criminal investigation into Goldman Sachs goes beyond the financial transactions targeted by the Securities and Exchange Commission in the civil fraud suit brought against the firm last month, law enforcement sources said Friday.

The Justice Department probe began weeks ago and is essentially on a parallel track with the SEC investigation, the sources said. While prosecutors and investigators are focusing on some of the same mortgage-related transactions as the SEC, the sources said, the Justice Department has cast a wider net.

Investors pounded Goldman Sachs shares on Friday as it became increasingly clear that the Wall Street bank's problems are continuing to grow. After initial news media reports about the criminal investigation, investors sent Goldman shares down 9.4 percent, or $15.04, to $145.20.

It was another brutal day for a firm that survived the worst of the financial wreckage of the past two years. Since the SEC filed its suit April 16, Goldman's shares have lost 20 percent of their value, costing investors $20.6 billion in market value.

Can you help us out?

For 17 years we have been exposing Washington lies and untangling media deceit, but now Facebook is drowning us in an ocean of right wing lies. Please give a one-time or recurring donation, or buy a year's subscription for an ad-free experience. Thank you.

Discussion

New Commenting System

Our comments are now powered by Insticator. In order to comment you will need to create an Insticator account. The process is quick and simple. When registering you will also be presented with the option to tie all your old Disqus comments to your new Insticator account. Please note that the ability to comment with a C&L site account is no longer available.

We welcome relevant, respectful comments. Any comments that are sexist or in any other way deemed hateful by our staff will be deleted and constitute grounds for a ban from posting on the site. Please refer to our Terms of Service (revised 3/17/2016) for information on our posting policy.