Goldman Sachs Admits It Defrauded Investors, Receives $5 Billion Fine, But Will Pay Much Less Than That

The bank does not pay fines by any loanable funds; they merely create book-keeping entries which are created by the payment demand; and, on the fractional reserve banking system it will now give them an extra 40 billion to loan against; and, the books are balanced every 24 hours by double ledger entries; it’s a badly ruled game of monopoly, a giant Ponzi scheme; in peace

Stop Making Sense

Eric Levitz reports for New York Magazine:

Squawk BoxIn April 2006, Goldman Sachs provided investors with a bullish report on Countrywide’s high-quality mortgage loans — loans the bank had helpfully packaged into AAA-rated mortgage-backed securities, thereby offering those lucky clients a low-risk way of profiting from America’s housing boom. When the bank’s head of “due diligence” saw the report, he typed a short email to his colleagues: “If only they knew…”

Now we know. On Monday, the bank completed a $5.1 billion settlement with state and local authorities for defrauding investors during the lead-up to the subprime-mortgage crisis. However, that $5 billion figure is just for public relations, a nice round number to show that the bank is really sorry and the Justice Department is super tough. In truth, Goldman will pay far less than that headline figure. The settlement earmarks $1.8 billion of the fine to consumer relief in the form…

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