Goldman Sachs, Greece Didn't Disclose Swap, Investors 'Fooled'

Goldman Sachs, Greece Didn't Disclose Swap, Investors 'Fooled'

www.bloomberg.com

Feb. 17 (Bloomberg) -- Goldman Sachs Group Inc. managed $15 billion of bond sales for Greece after arranging a currency swap that allowed the government to hide the extent of its deficit.

No mention was made of the swap in sales documents for the securities in at least six of the 10 sales the bank arranged for Greece since the transaction, according to a review of the prospectuses by Bloomberg. The New York-based firm helped Greece raise $1 billion of off-balance-sheet funding in 2002 throug

(visit the link for the full news article)

“The price of bonds should reflect the reality of Greece’s finances,” Blain said. “If a bank was selling them to investors on the basis of publicly available information, and they were aware that information was incorrect, then investors have been fooled.”

Isn't this FRAUD????

This company is like the Monsanto of world finances.
They are a virus that needs to be dealt with asap!

That is what we need in this world today, accountability!
And there is so very little of it!

www.bloomberg.com
(visit the link for the full news article)

I suspect that while most human beings would refer to the effect of the activity to be "fraud" the banking cartel will not. To them it's just what they do for a living... or rather what they do for the wealth of their board-members.

*sighs*

Let us wave goodbye to Greek membership of the European Union.

Originally posted by infinite
*sighs*

Let us wave goodbye to Greek membership of the European Union.

I guess your not aware that most are cheering this, as the only thing the euro has brought upon its Southern borders was high inflation, unemployment and corruption never seen before. But it would take more than this bump to even consider that Greece would voluntarily leave the E.U. let alone be allowed to leave.

Originally posted by ModernAcademia

“The price of bonds should reflect the reality of Greece’s finances,” Blain said. “If a bank was selling them to investors on the basis of publicly available information, and they were aware that information was incorrect, then investors have been fooled.”

Isn't this FRAUD????

This company is like the Monsanto of world finances.
They are a virus that needs to be dealt with asap!

That is what we need in this world today, accountability!
And there is so very little of it!

www.bloomberg.com
(visit the link for the full news article)

Keep in mind that 6 banking insitutions are involved in this scandal.

Commission gives Greece three days to explain details of debt concealment

The Times reports that the Commission has given Greece three days to disclose how it has used complex financial deals to conceal the true size of its public debt or it will take Greece to the European Court of Justice, under threat of daily fines. EU Economic Affairs Commissioner Olli Rehn said yesterday that he was not aware of similar issues with other EU countries swapping debt for loans that could be kept off the books in derivatives, but that “this has still to be verified”.



A leader in the FT argues: “if Greece broke the spirit of the rules, it was with the connivance of others. Brussels and eurogroup members must have known and accepted what was going on…this cannot be blamed solely on the Greeks. It is a European failure.”



The Guardian reports that the European Parliament has urged EU authorities to investigate the role of Goldman Sachs and other investment banks in contracts that helped inflate Greece's public debt.

reply to post by tristar


I was in Greece during transition...

Here's how I put it into perspective:

1 Euro was = to 300 drachmas.

A gyro (don't laugh...) was 180 drachmas.

After the change, a gyro was 1.50 Euros.

Thats 450 drachmas. Almost triple the price! Everything was more expensive.

That's fine and dandy if everyone gets a raise... but they didnt. They got the equivalent salary that they had, in euros.

Hows that for a gutting?

reply to post by GioTheGreek


Well, you can try to lower the production costs of the Gyros, perhaps the salaries in Greece are a bit high ?

reply to post by GioTheGreek


Thats ridiculous if its true..

In Ireland, every single person was sent a tiny £/€ converter by the government for ensuring there were no mark ups.. There was a number on the back stating if the price was hiked any more than 1 or 2%, it was to be reported.

Inflation took off pretty quickly though..

But in fairness.. Greece is renowned (in a good way) for being a little bit dodgy with transactions.. like the ability to haggle a bit with in a lot of shops. It shows an underlying attitude towards business in the country.

[edit on 1/3/10 by Dermo]

Originally posted by GioTheGreek
reply to post by tristar

 

I was in Greece during transition...

Here's how I put it into perspective:

1 Euro was = to 300 drachmas.

A gyro (don't laugh...) was 180 drachmas.

After the change, a gyro was 1.50 Euros.

Thats 450 drachmas. Almost triple the price! Everything was more expensive.

That's fine and dandy if everyone gets a raise... but they didnt. They got the equivalent salary that they had, in euros.

Hows that for a gutting?

Exactly the same thing happened when Spain changed from Pesatas to Euros - the cost of living flew way up but salaries didn't.

I'd spent a lot of time in Spain but it had only just changed to euros when I moved here and I got something like €1.63 for £1.00 which was great. Now it's almost €1.00 to £1.00 which is keeping the British tourists away and hurting the economy even more. House prices have plummeted by around 40% and many foreigners are just walking away from their homes. Under 25's unemployment is around 44% and overall unemployment is almost 20%.

There were protests everywhere, last week, because of raising the pension age from 65 to 67. Our IVA (VAT) and income taxes are due to go up in July. Basically, our earnings go down even further and the cost of everything goes up! Mind you, most locals where I live still want to keep the euro as they seem to think it's a status thing to have been accepted into the euro currency. Many of the locals work for cash only now which really isn't going to help get things moving again.

I even noticed that a McDonalds on the beach front has closed down - now that is seriously worrying!

Just seems like a very big mess throughout the whole eurozone and I have no idea how they can even begin to sort it all out.

Originally posted by Maya00a
when I moved here and I got something like €1.63 for £1.00 which was great. Now it's almost €1.00 to £1.00

Thats not a problem with the EURO.. thats fallout from the Pound disintegrating..

At the moment, the Pound should be by right be creeping up on the Euro but its continuing to weaken even as the EURO weakens against the dollar..

The best way to sort this out is to create two EURO currencies like they should have done in the first place.. One for the wealthier Northern Countries and one for the weaker economies around the Mediterranean.. That gives both types of economies control over their inflation and lending rates..

This idea is being toyed with again but it would be a messy transition..

Bloomberg, Goldman, Sachs...(all assoicated with the Rothchild Banking empire) all playing innocent to bad bonds to an ailing country's economy with subsequent economic ruin.

Clearly NWO manipulation of financal resources to control the stability of a country's economy,,,how long till this is the case with the US economy?

Goldman Sachs.... I'm not surprised.
Screwing people over for profit is the name of the game with them.

I can't wait till the day comes when all the political rats leave that sinking ship.
It will be Titanic!