When most people discuss how the Federal Reserve benefits the big banks, they usually only focus on the ways that the Federal Reserve directly brings in income. But there is so much more to it than that. The truth is that the Federal Reserve is used in a whole variety of ways to indirectly assist the big banks in making huge gobs of money. One of the ways this is currently being accomplished is through the U.S. Treasury carry trade. (Read More....)
Wow! Just when you think the U.S. government is entirely incompetent and toothless when it comes to controlling the corruption on Wall Street something like this happens. For those who have not heard yet, on Friday the Securities and Exchange Commission filed a civil suit accusing Goldman Sachs of securities fraud. We'll get into the details below, but first it is important to note how stunning all of this is. Goldman Sachs has had an extremely chummy relationship with the U.S. government over the past couple of decades. A whole host of former Goldman Sachs executives have been appointed to key government positions by both Republicans and Democrats in recent years. In addition, Goldman Sachs was Barack Obama's number one campaign donor, and its employees gave $981,000 to his campaign. But in spite of all that, the SEC has decided to go after Goldman Sachs. (Read More....)
In an absolutely stunning admission, the CEO of Goldman Sachs acknowledged on Wednesday that the investment bank engaged in "improper" behavior during 2006 and 2007. This improper behavior included making huge bets against the housing market while at the same time peddling more than $40 billion in securities backed by risky U.S. home loans. (Read More....)
The Unbelievably Rampant Corruption On Wall Street