The headline figure of a $5B settlement that Goldman will have to pay after admitting to the toxic-asset fraud that led to the global economic collapse is just window-dressing: in the fine print are exemptions and giveaways that could cut that number in half.
The rebate comes in incentives and tax credits that lop as much as 70% off of some of the payments in the settlement.
Also, no one is going to jail.
“They appear to have grossly inflated the settlement amount for P.R. purposes to mislead the public, while in the fine print, enabling Goldman Sachs to pay 50 to 75 percent less,” said Dennis Kelleher, the founder of the advocacy organization Better Markets, referring to the government announcement. “The problem all along, with all of these settlements — and this one highlights it even more — is that they are carefully crafted more to conceal than reveal to the American public what really happened here — and what the so-called penalty is.”
A Justice Department official with direct knowledge of the negotiations, who spoke on the condition that his name not be disclosed, said that the banks were given extra credit for activities that the government wanted to encourage, like funding development of low-income housing or providing relief to areas hit by natural disasters. But he also said that the final terms were a result of a back and forth between the banks and government officials.
In Settlement’s Fine Print, Goldman May Save $1 Billion
[Nathaniel Popper/New York Times]
(via Naked Capitalism)
(Image: Vampyroteuthis1, Ewald Rübsamen)
The Freedom of the Press Foundation’s lawsuit against the DoJ has resulted in the release of documents showing that a bill with that was nearly unanimously supported in Congress and the Senate was killed by behind-the-scene lobbying by the Department of Justice, which feared that they would lose the ability to arbitrarily reject Freedom of […]
Lee Jae-yong is nominally “vice-chairman” of Samsung, but his father, Samsung chairman Lee Kun-hee, is considered to be a mere figurehead, with Lee Jae-yong as the true boss of the company.
NSO is an Israel cyberarms dealer, which buys or researches vulnerabilities in software and then weaponizes them; claiming that these cyberweapons will only be used by democratic governments and their police forces to attacks serious criminals and terrorists — a claim repeated by its competitors, such as Italy’s Hacking Team and Gamma Group.
Although there will never be a consensus about the best way to make coffee, any coffee connoisseur will agree that controlling the grind of your beans and balancing water temperature are the keys to a tasty cup. Since your plastic coffee pot doesn’t really allow for that kind of customization, going back to the French […]
Not all hackers are malicious information thieves—white-hat ethical hackers work with technology companies to ensure the security of their computer systems and user data. With all of today’s high-profile data breaches, ethical hackers are in considerable demand. To learn these critical skills and break into the high-paying cyber security field, try taking the courses in this […]
Making people aware of goods and services in the digital age requires an array of new strategies from social media and email to number-crunching tools like Google Analytics. To get a handle on the techniques used to capture attention and convert traffic into dollars in a crowded online environment, the Full-Stack Marketer Bundle offers 22 hours of training to get […]