Sunday, July 18, 2010

Slapping the Hand of Goldman Sachs

The Securities and Exchange Commission fined, and Goldman Sachs accepted, $1/2 Billion for an act against "The Act" - the amount represented about 16% of Goldman's annual earnings. Goldman was allowed not to admit any wrongdoing.

 Its the Law, Bitches!: First and foremost, this is a legal issue: It is not a philosophical debate, a political question, or a case of ethical transgressions; It is not even an investing question.

Since this is a legal case, what say we actually look at the law?

“It shall be unlawful for any person, directly or indirectly to make any untrue statement of a material fact or to omit to state a material fact . . . [or to] engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person, in connection with the purchase or sale of any security.”
-Rule 10b-5, Securities Exchange Act of 1934 *
from Barry Ritholtz

Who’ll Stop The Rain?

"Long as I remember The rain been coming down.
Clouds of myst'ry pouring Confusion on the ground.

Good men through the ages, Trying to find the sun;
And I wonder, Still I wonder, Who'll stop the rain.

I went down Virginia, Seeking shelter from the storm.
Caught up in the fable, I watched the tower grow.
Five year plans and new deals, Wrapped in golden chains.
And I wonder, Still I wonder Who'll stop the rain.

Heard the singers playing, How we cheered for more.
The crowd had rushed together, Trying to keep warm.
Still the rain kept pouring, Falling on my ears.
And I wonder, Still I wonder Who'll stop the rain."
- John Fogerty (Credence)

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