In a statement straight out of the Ministry of Public Enlightenment, a member of the U.S. Securities and Exchange Commission's (SEC) division of enforcement "compared those seeking to leverage the blockchain use case improperly to cockroaches."
To be specific, SEC Enforcement Division co-director Steven Peikin said "roaches kind of crawl out of the woodwork and try to scam money off of investors."
Of course, he should know.
According to the Anne Frank Guide, this type of language was a key feature of nazi propaganda: "Jews are described everywhere as a threat to Germany and the German way of life that had to be dealt with quickly and harshly. They were even compared to rats and cockroaches."
The issue is this: it is impossible for Mr. Peikin to know which ICOs are scams unless he can look into the hearts of ICO issuers to determine their true motivation. He knows this. We know this. He must, then, actually be referring to all ICOs. This is the same t…
Maggie L. Walker founded St. Luke Penny Savings Bank in 1903, a time when Jim Crow laws and institutionalized prejudice conspired to prevent blacks from borrowing money or from even having bank accounts. This was done, of course, to keep blacks in a position of economic servitude, a situation blacks still suffer from to this day.
Born a year before emancipation, Ms. Walker, the daughter of a former slave, is the first American women to have successfully opened a bank. (Having attempted in 2008 to raise $50 million to create a black-owned bank holding company to make capital investments in and own parts of new and existing black-owned U.S. banks, I can tell you that this is no easy task.) She did so in the South. In Richmond, Va., the capital of the confederacy. during a time when even white women were not allowed to vote. In the South. (Oh, and she also led a boycott of Richmond’s segregated trolley car system, 50 years before the Montgomery Bus Boycott.) I'd say she's worthy…
The Securities and Exchange Commission’s (SEC) recent report defines tokens sold through ICO offerings as “securities.” This is neither appropriate nor in the public interest. This definition will restrict the ability of startups to raise much needed capital without having to go to commercial banks, investment banks and venture capitalists, institutions who long ago abdicated their role in providing capital to deserving startups and small businesses. (Commercial banks, investment banks and venture capitalists focus on providing capital to a narrow group of non-minority and non female firms. As Uber and others (Google?) have shown, many of the women who dared work for these commercial bank, investment bank and venture capitalist supported firms found themselves harassed..and we know what happened when they sought funding.)
In a press release, the SEC concluded that anyone using "..distributed ledger or blockchain enabled means for capital raising (needs) to take appropriate steps…
As we noted on June 11, 2016, "our initial 2016 Election Fully Adjusted Return Forecast indicates that Donald J. Trump will win the election for the Presidency of the United States" (see: "Why Trump Will Win" https://www.linkedin.com/pulse/why-trump-win-william-michael-cunningham-am-mba)
Having given on November 9, 2016 one explanation for Trump's win (https://www.linkedin.com/pulse/how-trump-won-william-michael-cunningham-am-mba), we continue to get interesting comments from persons claiming to have additional insight. I found one comment particularly interesting and thought I would share it.
“I enjoyed your analysis, but I think it leaves out a few factors.
Goldman Sachs acted as a broker for the sale of the US election. It’s why their people fill so many key positions. By applying the same type of computer programs used in high frequency trading, Goldman was able to manipulate actual vote totals. Given their knowledge of this type of trading, they identified…
Of course, as they do with Black people, rich white people claim to know everything there is to know about the poor. I think their main fear is that poor people will want the same deal that Goldman Sachs got, or the deal JP Morgan got, or the deal the "London Whale" or the LIBOR manipulators got. This fear is borne of a certain selfishness and greed.
It is, also, completely wrong, so I took the time to tell them what I think.
Here is what we want:
1. Water. Not privatized water systems. Access to clean water.
2. Food. Not GMO degraded, just clean food.
3. Shelter. Not subprime loans, but shelter.
4. Peace. Not the opportunity to be shot in the back by a racist cop, or a racist Israeli soldier or a Muslim extremist.
If you think about it, these are the same things that rich white people want.
From the New York Times,"At the behest of New York City’s public pension funds, two of the biggest financial companies with headquarters in the city, Goldman Sachs and MetLife, have agreed to publicly disclose information about the racial and gender breakdowns of their staffs."
Also see: http://www.nytimes.com/2012/04/16/nyregion/goldman-sachs-and-metlife-to-disclose-staff-diversity-data.html
Also see: http://www.americanbanker.com/bankthink/goldman-has-some-gall-seeking-profit-in-housing-1048229-1.html
It was Goldman's mark to market on the Bear Housing Fund that triggered the liquidity part of the housing crisis. They then went into the Fed to become a bank. Subsequently, they got $2 trillion in funding. Now, they are playing the upside, this after denying any meaningful role in the financial crisis (God's work) and after multiple severe securities market violations. My point is that, given this track record, they are lucky to be around, much less raising money for a mega housing fund.
One would be justified in being concerned that their actions with respect to the new Fund, despite what they might say, will not help the market and country work it's way out of the housing crisis, just when we are beginning to recover.
It's like letting someone with the flu in your house just after you got over pneumonia. Not a good idea.
An article in today's New York Times written by a soon to be former employee of Goldman Sachs starts with the admission that.."after almost 12 years at the firm..the trajectory of (the firm) is as toxic and destructive as I have ever seen it."
The author goes on to state what many have long known, that "the interests of the client continue to be sidelined in the way the firm operates and thinks about making money."
In a stunning development, Carver Federal today revealed they have raised $55 million in new equity capital. This amount exceeds, by almost three times, "regulatory capital requirements set by the Office of Thrift Supervision (OTS)."
According to the bank, investors include:
The Goldman Sachs Group, Inc., $15 million. Morgan Stanley, $15 million. Citigroup Inc., $10 million. The Prudential Insurance Company of America, $10 million. American Express Company, $2 million. First Republic Bank, $2 million. National Community Investment Fund, $1 million.
Prudential and American Express (full disclosure: former clients) have a 20 year track record of making these types of investments. National Community Investment Fund is a Creative Investment clone, and a bad one at that (we started seven years before they did.)
Which brings us to Goldman, who today "notified the New York State Department of Labor that the investment bank (might) lay off 230 employees." We'll see if they act…
According to news reports, most prominently a report by Charles Gasparino, Goldman Sachs is looking to settle SEC charges that the firm willfully mislead and defrauded investors in selling an investment product based on subprime mortgages. This is, of course, the smart thing for them to do, if they can. I am not sure that the SEC will let them off the hook lightly. Even a billion dollar fine would be of little consequence to the firm. What to do? Here is what I said in 2005:
"One thing I would note about the (Global Research Analyst) settlement itself is our belief that the penalties should have been income based. I know that's a settled point, but our suggestion would have been that the settling firms be stripped of all income for a 12-month period as a way of ensuring that they would not engage in these egregious actions again. What you do is let the firms run themselves for a 12-month period, you take a look back at how much money they made, and you take all of that money o…
According to the Washington Post, "The Securities and Exchange Commission has referred its investigation of Goldman Sachs to the Justice Department for possible criminal prosecution, less than two weeks after filing a civil securities fraud case against the firm, according to a source familiar with the matter.
The Wall Street Journal and Bloomberg News reported Thursday night that the U.S. Attorney's Office in Manhattan had followed up on the request and opened a criminal probe. The office declined to comment.
It is very rare for the government to indict a firm, and the mere threat of criminal prosecution can destroy a company. A criminal investigation destroyed the infamous Wall Street firm Drexel Burnham Lambert in the 1980s even though the firm settled with authorities."
I attended part of Senator Carl Levin's Permanent Subcommittee on Investigations hearing concerning Goldman Sachs. Bottom line: they never laid a glove on them. As one report noted, "By day’s end, the investment bank’s market value had risen by $549 million." My comments follow.
1. When questioned about most matters, Goldman's CEO simply misdirected the questioner to an irrelevant portion of the inquiry. Specifically asked a direct question about the firm's short position (a position that benefits from a fall in prices, in this case, housing prices) in the mortgage market, the CEO referred to Goldman's 140 year history (this was a misdirection), and characterized the firm's position as a hedge (this was false). A key factor relates to relative position size. A $1 million dollar long position offset by a $1 million dollar short position is a hedge. A $1 million dollar long position offset by a $10 million dollar short position is a directional bet on the ma…
According to the Washington Post, "The Securities and Exchange Commission filed charges Friday against Goldman Sachs, one of the most successful but vilified banks on Wall Street, for misleading and defrauding investors in selling a financial product based on subprime mortgages.
In filing the civil suit against Goldman Sachs, the agency is targeting one of the banks that largely escaped the wreckage of the financial crisis and, with the help of various forms of government aid, emerged stronger."
We believe this may be the first in a series of actions targeting Goldman. An examination of Goldman's transactions with AIG will probably reveal similar questionable practices. As we noted on July 9, 2009, the US lost 53% supporting Goldman.
As we noted on March 5, 2009, Goldman was one of several firms accused of systematically cheating customers.
We attended the hearing held by House Financial Services Committee on Wednesday March 17, 2010. Among the speakers:
The Honorable Ben S. Bernanke, Chairman, Board of Governors of the Federal Reserve
The Honorable Paul Volcker, Chairman of the President’s Economic Recovery Advisory Board, Former Chairman of the Federal Reserve
Their testimony focused on interest rates and government guarantees, such as those granted Fannie Mae and Freddie Mac. One Congressman asked if holding rates too low for too long causes inflation? Bernanke indicated he is watching economic trends closely will move rates up or down in order to avoid future economic problems. He stated that arbitrage opportunities still happened and that, based on current reports and research, demand is still lower than the full employment level. He noted that low interest rates can stimulate consumer expenditures and alleviate the unemployment problem.
He also stated that the Fed cooperates with other regulatory agencies in superv…
According to The Hill, "Now we learn that while many kids, hospitals and pregnant women cannot get enough of the swine flu vaccine, the major banks and Wall Street firms were given a private allocation. At best, this is a ridiculous distribution strategy; at worst, these firms gave some vaccines not to high-risk people but to high-profit traders and senior managers."
And you were wondering where your $700 billion went. Pitchforks, anyone?
According to MarketWatch.com, "The U.S. government made a 23% return supporting Goldman Sachs during the global financial crisis, the investment bank said Wednesday as it unwound one of the last taxpayer-funded investments it received last year." This is incorrect. If you include the $13 Billion that Goldman received through AIG (to make Goldman whole on Credit Default Swap transactions) we lost around 53%.
NEW YORK -- The financial turmoil that has weakened or destroyed some of Wall Street's most prominent companies is presenting an opportunity for some lesser-known firms, especially those owned by women and minorities.
One company that is benefiting is Williams Capital Group LP, an African-American-owned broker-dealer and asset manager in New York. Earlier this week, Goldman Sachs Group Inc. said it will invest $1 billion in a money-market fund managed by Williams Capital, more than doubling the amount of funds the firm has under management and pushing it over a critical size threshold that could help it attract additional institutional investors.
Last month, Williams Capital was named as part of a team assembled by Invesco Ltd. that applied to participate in the Treasury Department's Public-Private Investment Program, or PPIP, an effort to relieve banks of toxic assets. Invesco, and its affiliate WL Ross & Co., which is controlled by money manager Wilbur Ro…