With the news of the SEC’s civil fraud lawsuit against Goldman Sachs (NYSE:GS) it’s now plain as day that we need to pass a bank regulatory bill. I challenge anyone to read these emails from Goldman Sachs and explain to me or the rest of the American public why we should not demand that these banks be reined in. The emails are truly vomit inducing.
This is a fraud perpetrated on the entire American public. We bailed this company out and then they went on a PR campaign saying they did nothing wrong. The SEC claims to have evidence that Goldman knew the housing market was going to crash and still sold billions in CDOs to their clients. Goldman is denying the charges, but the accusations look pretty cut and dry. In an email, Goldman employee Fabrice “The Fabulous Fab” Tourre warned about the coming collapse of the market:
“More and more leverage in the system. The whole building is about to collapse anytime now… Only potential survivor, the fabulous Fab[rice Tourre]… standing in the middle of all these complex, highly leveraged exotic trades he created without necessarily understanding all of the implications of those monstrosities!!!”
George Soros says we should break up the banking oligopoly. I couldn’t agree more. This banking oligopoly helped cause this banking crisis and for some reason we remain in an unchanged environment. Why has this been allowed to happen? Why have we allowed the bank lobbyists to strong-arm our politicians? Is there any doubt now that the Volcker rule is a necessity to contain these institutions from potentially destroying the economy? The Enron banking system lives on for now. Hopefully this lawsuit opens some eyes and gets people mobilized. The American public should not put up with this….