{"id":6979,"date":"2010-05-28T09:27:37","date_gmt":"2010-05-28T07:27:37","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=6979"},"modified":"2010-05-28T09:28:02","modified_gmt":"2010-05-28T07:28:02","slug":"if-goladman-has-admitted-to-fraud-shouldnt-it-be-one-strike-and-youre-out","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2010\/05\/28\/if-goladman-has-admitted-to-fraud-shouldnt-it-be-one-strike-and-youre-out\/","title":{"rendered":"If Goldman has admitted to fraud shouldn’t it be one strike and you’re out?"},"content":{"rendered":"

FT Alphaville \u00ac\u00aa Goldman seeks SEC settlement<\/a>.<\/p>\n

According to the FT:<\/p>\n

Goldman Sachs hopes to avoid the SEC’s charge of fraud by reaching a settlement on a lesser offence and agreeing to a fine of hundreds of millions of dollars, reports the FT, citing people familiar with the situation.<\/p>\n

Goldman, which has been accused of civil fraud over a complex security called Abacus, is pushing for SEC settlement on the less serious charge of omitting or mis-stating material facts to investors.<\/p><\/blockquote>\n

Now let's, just for a moment, consider what fraud is. I can happily live with this definition<\/a>:<\/p>\n

In the broadest sense, a fraud<\/span> is an intentional deception made for personal gain or to damage another individual<\/p><\/blockquote>\n

So, Goldman is going to admit, its reported that it mis-stated material facts. Mis-stating requires knowledge of doing so. If you made an honest mistake you did not mis-state. You made a mistake in good faith. Mis-statement is providing knowingly incorrect information. Which seems like intentional deception to me.<\/p>\n

And did Goldman do this for gain? All the evidence suggests so.<\/p>\n

In which case Goldman is admitting to fraud.<\/p>\n

And we still let this organisation operate as a bank?<\/p>\n

Tell me, why we do that?<\/p>\n

Why should we let admitted fraudsters run banks?<\/p>\n

I thought the whole purpose of regulation was to stop that?<\/p>\n

Whilst Goldman fought this allegation they could carry on. But if even this lesser charge is accepted then fraud - whether civil or criminal does not matter - has been admitted.<\/p>\n

And when a bank admits to fraud it should be one strike and you're out.<\/p>\n","protected":false},"excerpt":{"rendered":"

FT Alphaville \u00ac\u00aa Goldman seeks SEC settlement. According to the FT: Goldman Sachs hopes to avoid the SEC’s charge of fraud by reaching a settlement
 Read the full article…<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70,14],"tags":[],"class_list":["post-6979","post","type-post","status-publish","format-standard","hentry","category-banking","category-corruption"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/6979","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=6979"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/6979\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=6979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=6979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=6979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}