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
- Plagiarism is Hardly a New Problem, It Predates Mainstream Media Getting Paid to Whitewash It as "Training" or "Hey Hi", Then Conflate Plagiarism With "Intelligence" or Deferred "Value"
- "Quantum" isn't new either; it's a 'circle-jerk' for companies without direction, only hype
- Unsafe at Any Speed, "Modern" Appliances
- Appliances have gotten worse
-
- IBM's Senior VP of Infrastructure is Out, Silent Layoffs Still Going On
- Some people imagine the CEO will also "retire" very soon (and "ahead of time")
- Gemini Links 09/09/2026: Mechanical Cameras, "Super App", and Prusa Issues
- Links for the day
- SLAPP Censorship - Part 177 Out of 200: Manosphere Without Financial Transparency
- It has moreover replaced a female worker with a male
- Deadline Tomorrow (10th of September) to Appeal the EPO's Fleecing of Staff (Union to Make Legal Challenges)
- Join them. Fight the good fight.
- linuxstans.com Died, Then Came Back as Slop (LLM Junk)
- Don't make the mistake or the assumption that merely 'dabbling in' or 'experimenting with' LLMs can be forgivable as it is a trust destroyer
- Links 09/09/2026: GAFAM Fatalities in Miami International Airport, "Britain’s Health Crisis Is Becoming a Political Crisis"
- Links for the day
- Gemini Links 09/09/2026: "Adjective Is Subjective" and Walled Gardens
- Links for the day
- Links 09/09/2026: Airport 'Down' (Glasgow and Edinburgh), 'Open' 'AI' Losses Rise to Pace of 50 Billion Dollars in Losses Per Year
- Links for the day
- SLAPP Censorship - Part 176 Out of 200: The Sex-Obsessed Non-Experts
- We heard some sexual stories
- European Patent Office (EPO): No Transparency and No Paper Trail
- The incompetence is that of the management, i.e. sheer incompetence of people who never examined a patent in their entire lifetime
- Gemini Links 09/09/2026: Going Out, Smartphone Addiction, Mapping the Geminispace
- Links for the day
- Over at Tux Machines...
- GNU/Linux news for the past day
- IRC Proceedings: Tuesday, September 08, 2026
- IRC logs for Tuesday, September 08, 2026
- Linux is Sabotaged by Botspam and Bloat (de Facto Denial of Service Attack in "Intelligence" Clothing After Rust in "Security" Clothing)
- Linux is becoming orphaned, devalued and diluted by GAFAM slop
- Switzerland No Longer Wants Microsoft's 'Swiss Cheese' (Back Doors)
- Switzerland's patience with Microsoft is wearing thin
- Debian is Not a Community, Many Debian Developers Work for Large Companies Including GAFAM (US)
- "Community" sounds like friendship and amicability
- Links 08/09/2026: Slop Companies Attack Some More Sites, Nvidia Bribes 'Linux' Foundation for Some More Openwashing and for Saying Slop is "Secure"
- Links for the day
- Gemini Links 08/09/2026: Ultra Introverts, BlackBerry Bold in 2026, and Laughing at LLMs
- Links for the day
- Microsoft Layoffs in October 2026
- Microsoft is a market leader. In NDAs.
- Links 08/09/2026: "The Green Revolution Has Failed Africa" and Palantir/Microsoft Harming NHS
- Links for the day
- Microsoft's Silent Layoffs Are the New Normal at Microsoft
- Microsoft has a ton of layoffs all the time, but the media isn't mentioning those as no WARN notices get issued
- SLAPP Censorship - Part 175 Out of 200: Implicit and Explicit Coalition Against the UK's SLAPP Industry
- SRA recognises the problem
- Further Transparency Problems at the EPO
- The EPO was never meant to be profitable
- Gemini Links 08/09/2026: "Everything Must Go", Announcing Perigee, and Presentations in a Browser
- Links for the day
- Over at Tux Machines...
- GNU/Linux news for the past day
- IRC Proceedings: Monday, September 07, 2026
- IRC logs for Monday, September 07, 2026
- Alleged Manager at IBM Says "[t]here are likely to be a lot (and I meant, A LOT) of RAs before December."
- "We’re getting pressure from above to put some team members on PIPs."
- Links 07/09/2026: Amazon Cargo Plane Crash, .org/.net/.com Domains Considered Risky
- Links for the day
- Gemini Links 07/09/2026: Cheese, Text-based Life, and Icons in Swaybar
- Links for the day
- Freedom, Not Fame, is His Goal
- pursuit of money can be not only tiring but also involve abandoning one's freedom
- Links 07/09/2026: Slop Trashes Memory of Parton, Flock Surveillance Infuriates Everyone
- Links for the day
- Getting Better After 20 Years
- Exactly two months from now this site is turning 20
- EPO Hiding Cocainegate and Abandoning Transparency (Even Access to Very Basic Information is Denied)
- The EPO isn't just becoming like a private for-profit corporation. It's also becoming more secretive.
- Richard Stallman Has Resurrected Lost Updates
- We didn't ask about it
- SLAPP Censorship - Part 174 Out of 200: Cascading Scandals and a Path Towards Much-Needed, Long-Awaited Reform
- Reform the UK's law, not "Reform UK"
- EPO's Gema Requena Sempere (PD People) Contacted Regarding Children With Disabilities
- In the coming week we may be in fruitful contact with some media regarding EPO scandals
- Over at Tux Machines...
- GNU/Linux news for the past day
- Gemini Links 07/09/2026: Music Composition, Free Stuff, and Self-hosting Git Repos
- Links for the day
- IRC Proceedings: Sunday, September 06, 2026
- IRC logs for Sunday, September 06, 2026