SEC Lawsuit against Goldman Sachs – Perspective

April 19, 2010

By Padmini Arhant

All the reports on Goldman Sachs from various credible sources confirm the fact that,

There is more to it than meets the eye.

SEC investigation must go underneath the surface.

For Goldman Sachs – it’s analogous to “make a mountain out of molehill.”

When in fact, it’s an erupting volcano that has already claimed many lives and threatening more in the present.

Wikipedia Report – Goldman Sachs Controversies: Thank you.

“Robert Freeman, who was a senior Partner, who was the Head of Risk Arbitrage, and who was a protégé of Robert Rubin, was also convicted of insider trading, for his own account and for the firm’s account.”

Per the above report on “Goldman Sachs’ Controversies,” juxtaposed to NYT article on the Obama administration’s economic team,

The New York Times report – By Jackie Calmes – Published: Monday November 24, 2008 – Thank you.

“The president-elect used the announcement Monday that he was appointing two Rubin protégés, Timothy Geithner as Treasury secretary and Lawrence Summers as senior White House economic adviser, to underscore his determination to step aggressively into a economic leadership vacuum in Washington while also maintaining continuity with the Bush administration before the transition of power Jan. 20.

Obama is expected to soon announce the appointment of another Rubin protégé, Peter Orszag, as White House budget director.

And even the headhunters for Obama have Rubin ties: Michael Froman, who was Rubin’s chief of staff in the Treasury Department and followed him to Citigroup, and James Rubin, Robert Rubin’s son.

Geithner, Summers and Orszag have all been followers of the economic formula that came to be called Rubinomics: balanced budgets, free trade and financial deregulation.

On Wall Street, Rubin is facing questions about his role as director of Citigroup, given the bank’s current troubles, and,

During the weekend held several discussions with Treasury Secretary Henry Paulson as a government rescue of Citigroup was organized.”

“What worries me is there is not one person in the senior group who is the outsider to this club.

And that’s particularly ironic, given Barack Obama’s bias toward copying Lincoln’s ‘team of rivals,”‘ said Robert Kuttner, a colleague of Bernstein’s at the liberal Economic Policy Institute who has written a book, “Obama’s Challenge,” on free-spending, pro-regulatory approaches to the economic crisis.

“Where is the diversity of opinion in this economic team?” he said.”

Perspective – By Padmini Arhant

The establishment’s control of the economic power in the Executive branch is noteworthy.

Whether it was the former Goldman Sachs CEO and Treasury Secretary Henry Paulson serving the previous Bush-Cheney administration,


The Obama administration’s economic team identified as “Robert Rubin’s” protégés,

The trend continues with the economic management by those responsible for the economic crisis.

Is it an irony or the undermining of democracy with “business as usual” concept prevailing in any administration.

Goldman Sachs investigation is just the tip of the iceberg.

Rigorous investigation and appropriate action is warranted to resurrect the financial market and the Wall Street credibility.

Goldman Sachs’ dealings in diverse portfolio and the recent performance beckons scrutiny considering the ramifications experienced in the domestic and international financial markets.

Prime examples are Greece and the U.S.economy.

Several European banks reported to have lost money in the deceptive deal.

SEC cannot be complacent with the preliminary finding.

Therefore, it’s incumbent upon SEC to proceed with further investigations against Goldman Sachs to deliver justice to the victims and protect the system from systemic abuse.

The U.S and the global economy cannot sustain history repeating itself.

Thank you.

Padmini Arhant


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