Thursday, January 29, 2009

Up, Jesse; Down, Goldman

The ever-trenchant commentator Jesse sums it up in the latest post at Jesse's Cafe Americain:

29 January 2009

Goldman Sachs Says the Banks Now Need At Least $4 Trillion in Bailouts

"Can we get an estimate that assumes we nationalize Goldman Sachs, Morgan Stanley, Citigroup, and J.P. Morgan, place them in receivership, selectively default on their derivatives, sell all their assets, and criminally prosecute their executive management from the year 2000 under the RICO statutes?"

DoctoRx here. My guess is that Goldman floated the $4 T number with Mr. Geithner's approval so that a smaller number will look "responsible".

In addition to RICO, what about Sarbox and general fraud statutes? Were all those P&L's truly accurate, and if they were not, should not the CEO have known?

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