Taibbi on Goldman naked short selling

[eridani]

Not my policy wonk specialty, so I appreciate a reasonably clear explanantion.

http://readersupportednews.org/opinion2/279-82/11457-focus-naked-short-selling

Good old Goldman - they can't answer any criticism without describing their critics as losers, conspiracy theorists, or, most frequently, both. Incidentally, Overstock rebounded from the 2005-2006 short attack to become a profitable company again, during the same period when Goldman was needing hundreds of billions of dollars in emergency Fed lending and federal bailouts to stave off extinction.

Anyway, this galactic screwup by usually-slick banker lawyers gives us a rare peek into the internal mindset of these companies, and their attitude toward regulations, the markets, even their own clients. The fact that they wanted to keep all of this information sealed is not surprising, since it’s incredibly embarrassing stuff, if you understand the context

[deadinsider]

1. Yup. But...

I'm beginning to investigate finance a bit more (being a Marxist this endeavor is quite critical now-a-days) and have discovered some interesting stuff. Most people talk about the repeal of Glass-Steagall in 98-99.

However, the link I'm putting here is with an earlier de-regulation. And it's quite ironic: it allowed firms like Goldman to more easily do business overseas, and actually created competition between it's different international branches. If New York (US) had too many regulations, Goldman's London (UK) branch would get the surplus capital. It's starting to sink in that the regulation inhibitor thing isn't exactly a myth, but is definitely of their own creation and for their own benefit. Interesting stuff...

http://en.wikipedia.org/wiki/Big_Bang_(financial_markets)

[Agony]

2. Cohodes - "Yes, I think Goldman Sachs is just like the mob."

Page 20-21
" in spite of the lack of confidentiality designation, Goldman wants to keep the Cohodes transcript nonpublic because of potential embarrassment, including testimony such as the following:

Q. Well, do you know how -- do you have any view as to whether the securities lending market is actually efficient or inefficient?

A. I think the securities lending market is just like the mob. I think it's completely rigged. It's a completely manipulated black hole, non-transparent market.

Q. Now, when you say you think they're just like the mob, are you referring to Goldman Sachs?

A. Yes, I think Goldman Sachs is just like the mob.

Q. And are you referring to them in particular or them and the rest of the market altogether?

A. I think Goldman Sachs is a racketeering entity that does whatever they can do to make a dime without conscience, though, foresight or care about ramifications. I think they're cold-blooded and could care less about the law. That's my opinion. I think I can back it up. "

[Shagman]

4. Almost like the mob

Goldman Sachs is just like the mob

Except that the mob has, or used to have, a code of honor. There is no honor, no morality of any kind, in these banksters.

[Po_d Mainiac]

3. history

deep capture
http://www.deepcapture.com/the-story-of-deep-capture-by-mark-mitchell/

Overstock
http://www.overstock.com/Patrick-Byrne/7371/static.html