Goldman Sachs’ ... poor reputation was cemented when the government sued it for fraud in 2010. The firm settled with the government for $550 million, but this was viewed as little more than a slap on the wrist because of the bank’s immense wealth. And the fraud accusations have not stopped — they have actually accelerated. Goldman faces a set of suits over mortgage instruments it sold worth a total of $15.8 billion. The Federal Housing Finance Agency in September accused Goldman of misrepresenting the quality of $11.1 billion worth of residential mortgage-backed securities. In the cases in which Goldman has settled claims, the press has not always been favorable. According to a Wall Street Journal report, Goldman agreed to forgive 25% of principal balances on 143 mortgage loans to borrowers in New York, or $13 million of a total principal balance of $52 million. The $13 million is less than a senior banker at Goldman might make in a year. Perhaps those homeowners are part of the Occupy Wall Street protests against big banks, for which Goldman is the poster boy.
Wednesday, January 18, 2012
Despite their rank reputation for ill-gotten gains at the expense of ordinary people, Nashville Mayor Karl Dean no doubt sees Goldman as golden: