Links 23/7/2010: Bank Fraud in Retrospect, Wikileaks Hunt
- Dr. Roy Schestowitz
- 2010-07-23 20:35:32 UTC
- Modified: 2010-07-23 20:39:23 UTC
At about 2pm this afternoon the High Court will rule on whether the libel claim against Labour bloggers John Gray and Alex Hilton can be struck out for abuse of process.
My friend Robert Dougans, who of course acted for Simon Singh, is formally representing Alex Hilton, and I am in turn one of the lawyers helping Robert Dougans.
-
Finance
While the Securities and Exchange Commission’s fraud lawsuit against Goldman Sachs may be over, the myths about what’s contained in the settlement agreement seem to have taken on a life of their own.
There’s been so much misinformation floating around on this subject that it’s time to set the record straight. Contrary to many reports over the past week, the SEC didn’t back off any of its fraud allegations. Nor will Goldman be allowed to deny the SEC’s harshest accusations. Yet over and over, articles and analyst reports keep popping up asserting otherwise.
Next is the more disturbing question: Did the S.E.C. let Goldman off too easy? As has been widely noted, the $550 million settlement, which has been approved by a federal judge, is chump change compared with Goldman's bonus pool, and less even than Goldman's depressed second-quarter profits.
Benchmark offerings are typically at least $500 million in size. No timing was given for the deal.
The investment firm of Goldman Sachs will repurchase up to $60 million in auction rate securities from Missouri investors who were caught up in the market meltdown in early 2008.
The settlement was announced Wednesday by Missouri Secretary of State Robin Carnahan. This marks the 15th auction rate settlement in Missouri leading to the reimbursement of more than $1.5 billion for investors.
Morgan Stanley, buoyed by rising revenue, set aside 37 percent more money to pay employees in the first half of 2010 even as rivals Goldman Sachs Group Inc. and JPMorgan Chase & Co.’s investment bank lowered their compensation expenses.
Goldman Sachs Group Inc, JPMorgan Chase & Co and Citigroup Inc are among those Obama administration pay czar Kenneth Feinberg will cite for having made "ill-advised" payments, the Wall Street Journal reported on its web site on Thursday.
As Goldman Sachs faced arguably one of its most challenging quarter in decades -- on several fronts, from SEC charges and lagging profits to financial regulatory reform and renewed scrutiny of all its activities -- the firm increased its spending on lobbying by almost 40% in the second quarter of 2010 and has already spent almost as much in the first half of this year as it did in all of 2009.
In its most recent lobbying report filed last night, Goldman spent $1.58 million to influence Congress and the White House on a host of issues including Wall Street reform -- specifically derivatives regulation, bank tax and financial risk management -- the much-debated unemployment benefits extension, municipal finance, small business funding, climate change legislation and transportation funding.
Goldman is not a mere mortal king but has been viewed in some circles as a god on Wall Street. Unfortunately, when Goldman kissed Paulson, the latter bit and the former bled; and now Goldman is astride the rope bridge, bejeweled and crowned but imperiled as the SEC hacks away.
When Goldman Sachs released its first-quarter results in April, its strong profits were overshadowed by news of a lawsuit from the Securities and Exchange Commission accusing the firm of fraud in a sale of mortgage-related securities. When it released its second-quarter results on Tuesday, its plunging profits — down 82 percent from the same period a year earlier — overshadowed the $550 million it paid to settle the S.E.C. case last week.
With the financial system on the verge of collapse in late 2008, a group of troubled banks doled out more than $2 billion in bonuses and other payments to their highest earners. Now, the federal authority on banker pay says that nearly 80 percent of that sum was unmerited.
The list was sought by panels reviewing the beneficiaries of New York-based AIG’s $182.3 billion government bailout, said the people, who declined to be identified because the information is private. Goldman Sachs, which received $12.9 billion after the 2008 rescue tied to contracts with the insurer, has said it didn’t need AIG to be rescued because it was hedged against the firm’s failure.
The U.S. Securities and Exchange Commission’s internal watchdog said he will expand his probe into whether politics drove an agency lawsuit against Goldman Sachs Group Inc. to include the timing behind a $550 million settlement with the company.
Pacific Investment Management Co., the bond-fund firm that last year began a push into equities, hired Maria Gordon from Goldman Sachs Group Inc.’s asset- management unit to start an emerging-market stocks group.
Gordon was head of the emerging-markets equity team at Goldman Sachs Asset Management in London, where she oversaw about $8 billion in assets, the Newport Beach, California-based firm said in a statement. Gordon, who plans to join in October, will eventually run a group of four to six people and will be based in London.
Fairfield Greenwich Group co-founder Walter Noel was sued by the trustee overseeing the liquidation of Bernard Madoff’s firm as part of an amended lawsuit that names 43 new defendants.
Noel and the other defendants worked with Madoff and his firm “to commit, and exponentially expand, the single largest financial fraud in history,” trustee Irving Picard said in the complaint filed yesterday in U.S. Bankruptcy Court in Manhattan. “Every dollar the defendants purportedly ‘earned,’ and every dollar they kept to unjustly enrich themselves, was stolen money.”
Goldman Sachs is proud to announce a consumer-enriching expansion from the hallowed halls of Wall Street to the glittering neon of Las Vegas. In addition to continuing our world-class wealth-friendly Private Wealth Management and Personal Banking services; our internationally-recognized client-focused Global Investment Research services; our award-winning, growth-facilitating Debt Financing teams, we are excited to unveil plans for the globally diversified, entertainment-enhanced, Goldman Sachs Lounge & Casino, perfect for both the high roller, and the high-net-worth individual, financial institution, corporation and/or government.
While Goldman Sachs agreed to pay $550 million to resolve a civil fraud lawsuit filed by the SEC, Goldman has not been held accountable for many of its other questionable investment practices. A new article in Harper’s Magazine examines the role Goldman played in the food crisis of 2008 when the ranks of the world’s hungry increased by 250 million. We speak to Harper’s contributing editor Frederick Kaufman.
-
Censorship/Privacy/Civil Rights
Wikileaks founder Julian Assange was a no-show at the annual New York City hacker conference HOPE, after five Homeland Security agents turned up the day before he scheduled to speak.
After an army intelligence analyst blew the whistle and leaked 150,000 State Department classified diplomatic cables and an aerial attack video to Wikileaks, conference organizers warned in June that Assange, a scheduled keynote speaker, might not turn up if hew wanted to avoid detention.
In the past controversial plays have had to be shut down because the police did not want to bear the costs of policing the protests.
With Boris increasingly displaying authoritarianism – banning Democracy village and threatening motorcycle protesters – it looks increasingly like the Tories aren’t as enthusiastic about civil liberties as they’ve claimed.
The term 'progressive' is a pernicious and treacherous thing. It is not a belief system. It doesn't denote a series of beliefs or policies. It is a sentiment, a vague allusion. It translates as 'leftish'. Its political usefulness lies in this absence of meaning, allowing right-wingers to attract moderates without actually committing to any specific proposals.
-
Net Neutrality
SNIPPET: While US telcos, politicians, user rights activists and big media companies have spent the past three years wrangling, tussling, lobbying and shouting about net neutrality, the issue has never caused much trouble elsewhere.
-
Intellectual Monopolies
The Peer 2 Peer University is gearing up to launch its third cycle of courses this coming September, and we’re looking for new faces to join the community. Do you have an idea for a six week course? Whether it’s Physics 101 or Poker and Strategic Thinking, all ideas are welcome. You can propose a course at http://wiki.p2pu.org/Create-a-Course (deadline is August 6, 2010).
-
Copyrights
For the last six months I’ve been calling on Barry Sookman to disclose who he was working for. Barry claims that his blog is his personal thoughts. I claim that everyone is affected by their friends and relatives, their work, and other contacts, and that therefore his employer has an affect on his blog, and must be disclosed.
Barry has avoided the issue. He knows that I know who he is working for. He knows that if I can get him to publicly state who he is working for, I can do damage to his cause, and therefore his best option was to say nothing (which is an oddity in it’s own right – Barry is ever more verbose than I am), while I continue to pretend that I don’t know who he’s working for, and that I can’t find out who he’s working for.
But the cat is now out of the bag. A comment was made on the blog, and I decided to let it stand. Barry Sookman works for the Canadian Recording Industry Association.
Recent Techrights' Posts
- This Bubble is Bursting, Piecewise
- It's nice to see Wall Street getting some reality checks
- Can We Finally All Agree That UEFI 'Secure Boot' is a Sham That Harms Security and Gives Microsoft Remote Control Over All PCs and Servers (Even Those That Don't Run Any Microsoft Software)?
- Cui bono?
- Daniel Pocock as Independent Candidate, Now in The London Standard
- "Daniel Pocock is an independent candidate."
-
- UKIP TV (GBNoise) Covers Challengers to UKIP Nigel, Daniel Pocock Mentioned
- Way to get noticed
- Links 18/07/2026: Chinese State Media Depicting Neighbours as Monkeys, US "Stocks Sink on Anxiety About Tech and Hey Hi (AI) Spending"
- Links for the day
- Gemini Links 18/07/2026: "Business Idiots Everywhere", "The Siren Song of DePIN", and Entering Geminispace
- Links for the day
- GNU/Linux in Lithuanian Desktops/Laptops Climbs to 8%, the Global Average
- For its own national security it would be wise to abandon Windows
- It's Not About XBox, Microsoft is Already Firing Hundreds of People Who Do "Security [sic] Engineering" [sic]
- The official reason/excuse/lie told is something about slop, but no sane person would buy it (not even insiders who are impacted)
- Bolivian People Adopt GNU/Linux (They Have a Domestic Distro Too, PluriOS)
- Notice Windows falling to an all-time low
- No Technical People Write About UK Parliamentary Elections
- Almost none of them work in the media, which seems to favour parrots, slop, or parrots that use slop
- "But Stallman is Scaring Away Women..."
- Such dishonest projections (projection tactics) needs to be called out and refuted
- First Female Debian Project Leader (DPL) Affirms Low Profile and Inferior Status of Women in GAFAM
- 3 months ago Sruthi Chandran was elected as Debian Project Leader (DPL) for a period of 12 months
- After 5 Years Vista 11 Still Adopted Less Than Its Predecessor (Orphaned, End of Life Since Last Year)
- Notice Windows going down to 40%
- We Don't Depend on Google (or Search Engines in General)
- there's a lesson here and it extends beyond sites
- Only "Torvaldos" (Linus Torvalds) Can Use the F-Word, CoC Does Not Apply to the Enforcer, and Richard Stallman Punished for Using the Other F-Word ("Freedom")
- "Linus Torvalds tells AI haters to fork off"
- Explaining the Culture of Bulletin Board-Style Chat
- Only desperate detractors would try to present something (cherry-picked) from IRC as some sort of official statement for Techrights
- Independent, But Not Fringe
- "Daniel Pocock is an Independent Candidate."
- In Free Software, Nobody Gets Fired
- Way to own one's code and project
- PIP-Styled Mass Layoffs Allegedly Coming to Microsoft by 12 August 2026
- Microsoft has been doing "silent layoffs" (PIPs and more) for quite some time
- Daniel Pocock's Candidacy (Election of Member of Parliament) Mentioned in BBC and Over a Dozen News Sites Since Yesterday
- Funnily enough, albeit not surprisingly, the same people who attack Pocock also attack us
- Links 18/07/2026: Spotify Uses Slop Song Descriptions, "San Francisco Demands Removal of Nudify Apps"
- Links for the day
- Over at Tux Machines...
- GNU/Linux news for the past day
- IRC Proceedings: Friday, July 17, 2026
- IRC logs for Friday, July 17, 2026
- Gemini Links 18/07/2026: A Manifesto by The Dissident, Shokz Headphones, and Gemini Tinylog Reader (GTL)
- Links for the day
- IBM Already Tentatively Down for Next Week (Monday) After Its Worst-Ever Week
- What a week for IBM!
- Links 17/07/2026: Protests Erupt Throughout Ukraine and Anthropic Caught Secretly Spying on Users
- Links for the day
- Gemini Links 17/07/2026: "Silence Doesn't Mean Abandoned", Revisiting PalmOS in 2026
- Links for the day
- Andy Burnham as National Leader Would be Excellent for Techrights
- Burnham has envisioned a British "centre of power" (or gravity) that moves northwards, isn't concentrated in the southeast anymore
- Farage Out, Daniel Pocock in?
- Can Pocock beat his previous voting record?
- Layoffs at Microsoft Are Massive, Go Under the Radar for the Most Part
- Microsoft is in a really bad shape
- One Heck of a Week for IBM, the 'Grandpa' of 'High-Tech', International Business Machines Corporation (NYSE:IBM) Under Investigation by Bronstein, Gewirtz & Grossman, LLC
- If IBM gets busted or might be busted, will the CEO jump, get pushed, or be arrested?
- In Defence of Courts' Privacy Policies
- If you want friends, go offline. Meet real people and share real experiences.
- Why I Quit Academic Career (or Academia) Nearly 15 Years Ago
- I am told by people who stayed that it has only gotten worse
- “Why Open Source Misses the Point of Free Software”
- As Dr. Richard Stallman once put it
- GNU/Linux Grows at the Expense of Microsoft Windows in Croatia, Now Close to 8%
- Croatia has been mentioned a lot lately in relation to EPO "lobbying" (vote-rigging)
- 27-Year IBM Veteran on IBM: "Worse than the Titanic and Perhaps Just Like Madoff, Enron, etc."
- several comments we saw today envisioned the CEO of IBM in an orange suit (in US prison)
- EPO "Cocaine Communication Manager" - Part XV - Nazi-Like Thinking at the European Patent Office (EPO) Not a Thing of the Past
- antisemitism inside the EPO
- Daniel Pocock Running for Office Again, Clacton-on-Sea By-election
- By-election - code name "Pocock-on-Sea"
- ServiceNow/ServiceLine and Slop at the EPO is Becoming a Health Risk to Staff
- PD44 has historically been the oppressor at the EPO
- IBM Can Burn Pensioners to Appease Wall Street and Protect the Billionaire CEO With His Humongous Bonuses
- Its stock it set to open 2.82% in the red
- IBM SHAREHOLDER INVESTIGATION: Potential Securities Claims Involving International Business Machines (IBM)
- there's a risk of criminal action against executives
- Tux Machines Moving Onwards and Upwards
- "...tasks expand to fill the time available"
- The Register MS is Publishing Spam for Gartner Group to Spread Hype About "AI", Mentioned 30 Times in the Paid (Fake) Article
- One sure thing is, the so-called 'tech media' is profoundly compromised by American corporations
- "Market Share" of GNU/Linux Nearly Trebled in Cambodia This Month
- GNU/Linux is still measured at 8% by statCounter
- GitHub is Dying (Traffic Down Despite Bots and Slop), Microsoft Will Eventually Cull it - Just Like XBox - to Limit the Losses
- Do not stay on GitHub (Microsoft) under the false assumption that it is "free hosting" or will always be around
- Teaser: Daniel Pocock is About to Go Mainstream Again
- Stay tuned, Pocock has something in store
- Microsoft Has Just Been Sued Over Layoffs
- If the rumours are true, there is yet another wave of layoffs at Microsoft
- Richard Stallman Always Cautioned, Upfront, That His Political Views Were Wholly Separate From His Scientific Work or GNU
- Notice that he already spoke a lot about politics
- Links 17/07/2026: Microsoft is Cutting OneDrive Coverage, Larry Ellison Sued by Paramount Investor
- Links for the day
- Nichirei and Asahi Beer Need to Take Cyberattacks as Hint of Opportunity to Move to Free Software
- Windows TCO
- Over at Tux Machines...
- GNU/Linux news for the past day
- IRC Proceedings: Thursday, July 16, 2026
- IRC logs for Thursday, July 16, 2026
- Gemini Links 17/07/2026: Sunlight in the Clouds, Techno-Therapy, and Sloppifying Original Text
- Links for the day
- Links 16/07/2026: Slop Recognised as a Waste of Energy, Hong Kong Cracking Down on Dissent/Opposition Some More
- Links for the day
- GNU/Linux Approaching 5% "Market Share" in Oceania, Almost Trebling in 12 Months
- It is difficult to ignore the gains made by GNU/Linux this month
- Microsoft Whistleblowers Explain How Brutal the Latest Cull is (Layoffs in Seconds-Long Calls, Mass Elimination of Whole Studios and High-Level Officials)
- we see anonymous leakers or whistleblowers in the media today
- Gemini Links 16/07/2026: esp32-gemserv, Slop-Contaminated Free Software, and Moving Systems
- Links for the day
- Last Summer Microsoft Mass Layoffs Came in Two Large Waves, Rumours Say Next Week Another Large Wave is Coming
- If many more Microsoft layoffs are formally admitted next week we will not be surprised
- Tomorrow is Another Strike Day at Europe's Second-Largest Institution, the Media is Still Deliberately Ignoring It
- Fridays are now recommended “anchor days" for EPO strikes
- Public Interest News Foundation Shows News Drought or News Deserts in the United Kingdom
- Public Interest News Foundation shows that we should be deeply concerned
- Illusions of Choice
- Choices can be differently bad or equally bad
- Windows Down to 10% in India
- Windows is a "burning platform"
- One Year Has Passed
- Our aim is to repair an injured system wherein "abuse of process" can be turned into a weapon, leveraged even by foreigners who are funded by affluent third parties
- Techrights is Annoying People Who Work for (and Serve) People Who Annoy (and Abuse) Society
- Working against us (instead of with us) has historically been a bad strategy
- No Skinnerboxes, No Slop, No False Idols or Corporate Prophets
- Torvalds does not understand the everyday struggles of tech workers and tech users because he is a millionaire
- IBM's Next Stop: $199 (Market Cap Already Under 2.5 Times IBM's Debt)
- Don't rush to call us "sensationalist" over it
- Links 16/07/2026: Solar Greenwashing by Energy-Wasting GAFAM and Growing Concerns About Harm by Social Control Media
- Links for the day
- Gemini Links 16/07/2026: Photography, Agility, and "Today I have Truly Become a Linux User."
- Links for the day
- Rebellion Brewing at Microsoft
- As always, we welcome Microsoft whistleblowers
- Technology Against Human Nature
- Losing a sense of what it means to be alive
- Over at Tux Machines...
- GNU/Linux news for the past day
- IRC Proceedings: Wednesday, July 15, 2026
- IRC logs for Wednesday, July 15, 2026