By REED ALBERGOTTI
After a year-long investigation, the Justice Department said Thursday that it will not bring charges against Goldman Sachs Group Inc. or any of its employees for financial fraud related to the mortgage crisis.
In a statement released Thursday, the Justice Department said “the burden of proof” couldn’t be met to prosecute Goldman criminally based on claims made in an extensive report prepared by a U.S. Senate panel that investigated the financial crisis.
via U.S. Won’t Pursue Goldman Charges – WSJ.com.
Question is: Should GS be allowed to get away with it? Can they be broken up? Are their other measures that could serve as a deterrent in the future?
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
Didn’t Goldman Sachs take commissions on sup-prime mortgage backed securities during the housing bull market and then make billions by effectively shorting the same products during the housing bear market? Sounds like insider trading to me. Maybe I’ve got all wrong.