As Congress is debating more government regulation of Wall Street, the SEC dropped a bombshell last Friday by announcing civil fraud charges against Goldman Sachs. The timing of this charge makes many believe it is more political than fact based.
It seems that the New York Times was aware of the charges before Goldman Sachs. The White House had a website up to promote more government control over Wall Street as soon as the charges were announced but they claim the SEC gave them no advance notice.
Even Democrat Senator Tom Harkin has stated that the timing of the SEC charge is perfect for their reform efforts. The top Republican on the House Oversight Committee, Rep. Darrell Issa is demanding SEC records on the the Goldman issue due to concern “politics have unduly influenced the decision and timing of the commission’s controversial enforcement action against Goldman”. The GOP is demanding information on the SEC releases to the White House, the Democratic National Committee and the New York Times.
The Security and Exchange Commission is supposed to be independent and impartial but this Goldman issue seems to be more politically motivated than fact based.
The charge against Goldman is civil fraud, if there was a strong case wouldn’t it be criminal fraud? An article by Terence Corcoran in FinancialPost.com states: “even in the SEC’s version, the Goldman scandal looks far from being fraud and a lot like a move on behalf of Democrats and the Obama administration to boost support for radical financial reform”.
It also seems odd that both sides of the of this convenient scandal are so closely linked. Golden contributed nearly $995,000 to Obama’s campaign and Obama’s former White House legal counsel Greg Craig is defending Goldman against these weak charges. It gives the appearance of a political stunt to aid Obama’s quest to control more of the nation’s financial institutions.
If there was truly some serious wrongdoing the guilty should be prosecuted but this “scandal” seems to be nothing more than Chicago style politics.
We all need to wake up or we will not have any financial institutions that are not completely at the mercy of the government. They already run the car companies, banks, Obamacare will control the health industry and huge Value Added Taxes are already in the plannimg stage.
For your own good, stay informed and motivated to vote in November. Unless you are enjoying Obama’s financial transformation plans.
