SEC Hooks Goldman Sachs

Goldman Sachs, “…a great vampire squid wrapped around the face of humanity….”

In July of last year, I wrote:

Of course, Goldman was smart enough to know that the gravy train would derail soon enough and began shorting the very instruments they’d sold to their own customers.

Seems like those Goldman’s chickens are coming home to roost:

U.S. Accuses Goldman Sachs of Fraud in Mortgage Deal

Goldman Sachs, which emerged relatively unscathed from the financial crisis, was accused of securities fraud in a civil suit filed Friday by the Securities and Exchange Commission, which claims the bank created and sold a mortgage investment that was secretly devised to fail.

The move marks the first time that regulators have taken action against a Wall Street deal that helped investors capitalize on the collapse of the housing market. Goldman itself profited by betting against the very mortgage investments that it sold to its customers.

In that post I quoted the inestimable Matt Taibbi, who helpfully defined GS as follows :

The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”

Finally,  an indictment for which the Obama Administration can be proud.

Now, if it would just stop “looking forward, not backwards” concerning the lawbreaking of the national security regime set up by the Bush Administration.

[Image found here.]

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