Welcome to the morning roundup. Here's a look at today's banking and finance news.
Banks plan for the worst. U.S. regulators told five of the country's biggest banks, including Charlotte's Bank of America Corp., to develop plans for preventing collapse, Reuters reports. Regulators directed those lenders to come up with the largely secret "recovery plans" beginning in May 2010, according to documents obtained by Reuters.
U.S. won't prosecute. The Justice Department won't bring charges against Goldman Sachs Group Inc. or its employees for financial fraud related to the mortgage crisis, it said after a yearlong investigation, the Wall Street Journal reports. Authorities said they couldn't meet the burden of proof to prosecute the Wall Street giant criminally.
Regulators plan overhaul. Responding to public anger over the Libor rate-rigging scandal, British regulators plan to overhaul the rate-setting process, the New York Times reports. Reforms might include scrapping the current system and making it a criminal offense to manipulate benchmark rates.
Stocks slip. U.S. stocks fell this morning on worse-than-expected Chinese trade data and fears the global economy is slowing, Bloomberg reports.
Friday, August 10, 2012
Big banks develop survival plans
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3 comments:
No charges against Goldman? What a freaking joke.
After a yearlong investigation, the Justice Department said Thursday that it won't bring charges against Goldman Sachs Group Inc. GS +1.06% or any of its employees for financial fraud related to the mortgage crisis.
In a statement, 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.
Let's see.... the standard of proof is "beyond a reasonable doubt." Do you think a jury would be convinced if you could show that...
The report concluded that even as securities firms flooded the market with securitized mortgages and advised clients to buy them, firms privately used words like "crap" and "flying pig" to describe the financial instruments.
And this is not sufficient for a jury to find that "beyond a reasonable doubt" the people who bought those securities were deceived as to what Goldman believed about them?
That's an interesting conclusion by the US Just-US department.
Do you think that this is the Change many voters had Hoped for?
I hope there are others with a lot more positive outlook than I have. I am going to have to go with my gut feelings though and at least for the next 6 months or so, pull my cash out of the stock market and banks. My grandfather lived through the first depression and taught me the value of being frugal and self reliant. I hope and pray that something happens in the legislature to prevent any economic collapse, but who can tell.
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