We have a huge prison problem in the United States.
The country is running out of prison cells to house the worlds worst prisoners. The United States has more people locked up in prison than any other country on Earth.
If you look at who is locked up you will see drug dealers, and gang members, and con men, but what you won't see is anybody from Goldman Sachs.
You can check all the jail cells and you won't find anyone from Goldman there. They are not out in the yard. They are not in solitary. They are not anywhere....... Don't get me wrong Goldman is filled with criminals........but none of them will be found in jail.
The criminals you will find in jail wish they could have the criminal impact the people at Goldman have.
The criminals in jail are penny ante players compared to the professional criminals at Goldman.
But Goldman just (eventually) admits to their crimes and then pays a tax exempt fine. Then they are on their way. No police cars. No swat teams. No handcuffs. Nothing. Just write a check.....giggle to yourself.....and carry on.
It is good to be in the big banks.
The deal announced Monday resolves state and federal probes into the sale of shoddy mortgages before the housing bubble and economic meltdown.
"This resolution holds Goldman Sachs accountable (Not really) for its serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail," said Acting Associate Attorney General Stuart Delery in a statement.
The Justice Department said Goldman admitted in the settlement that it made "false and misleading representations to prospective investors" about mortgage-backed securities it was selling.
In a statement of facts outlined in the agreement, Goldman acknowledged that "significant percentages" of the mortgages it packaged in securities sold between 2005 and 2007 did not conform with it had told investors about the loans.
The Justice Department said that senior executives in Goldman's mortgage unit, along with credit and legal department employees, were required to approve every residential mortgage-backed security (RMBS) issued by the bank. Goldman's so-called Mortgage Capital Committee approved every RMBS that it reviewed between December 2005 and 2007 despite knowing that many home loans in the securities had credit and compliance defects,
The settlement also makes clear that Goldman suspected that many of the subprime loans it was rolling up into securities were potentially deficient. The Justice Department cites a security Goldman created in 2006 with loans made by Countrywide Financial, at the time the country's biggest provider of subprime loans.
"In April 2006, while Goldman was preparing an RMBS backed by Countrywide loans for securitization, a Goldman mortgage department manager circulated a 'very bullish' equity research report that recommended the purchase of Countrywide stock," the agency said. "Goldman's head of due diligence, who had just overseen the due diligence on six Countrywide pools, responded 'If they only knew....' "
Under the law, Goldman could partially ease the financial pain from the settlement by deducting roughly $2.7 billion from its taxes, equivalent to the combined relief for homeowners and borrowers, along with the money for the other claims
The agreement is the latest multi-billion-dollar civil settlement reached with a major bank. Other banks that settled in the last two years include Bank of America (NOBODY WENT TO JAIL), Citigroup (NOBODY WENT TO JAIL), JPMorgan Chase (NOBODY WENT TO JAIL) and Wells Fargo (NOBODY WENT TO JAIL).