Justice Department Won’t Prosecute Goldman Sachs

On Thursday night the Justice Department announced it would not be prosecuting Wall Street firm Goldman Sachs or its employees for financial fraud.

In an unsigned statement the department said id conducted an exhaustive investigations of allegations that Goldman marketed four sets complex mortgage securities to banks and other investors but that the firm failed to disclose the risks associated with them and that the firm secretly bet against the investors’ positions and deceived the investors’ about its own positions to shift risk from Goldman to their clients.

It’s a disappointing end but not all that surprising. The Department of Justice seems inherently incapable of prosecuting Wall Street, even in the face of a mountain of evidence that Goldman thought its own products were “junk.”

Which means the only way this culture of greed changes is if Congress takes bold action. Sen. Sherrod Brown and Sen. Sheldon Whitehouse have already proposed a bill that would break up the big banks, and this is the natural place to start.

Of course, a bill like that only gets through Congress if voters demand it does, and the easiest, most direct way for voters to do so is by voting in candidates committed to financial reform. And the only way to make that happen is by making sure those candidates are not drowned out by corporate dollars, which means getting serious about campaign finance reform.

Yes, it’s a long shot, but yet another failure to prosecute Wall Street shows that there really is no other choice.

 

Related Stories:

SEC Sues Goldman Sachs For Fraud

Goldman Sachs Hit With Discrimination Suit

Photo from ChairWomanMay via flickr.

74 comments

Martha Eberle
Martha Eberle3 years ago

WHAT?!! Goldman Sachs was the worst! I'm highly disappointed, because the evidence is overwhelming. This is not right -- the highest judicial authority in our country should be able to prosecute people, not just set fines. So we are just to accept this?! It goes against my "justice grain." But yes, people, elect the best to Congress and let's have campaign finance reform. We have to start somewhere -- none of us can afford to have more of our retirement accounts robbed.

Phyl M.
Pho M.3 years ago

the US government people will not prosecute their own kind.

Don H.
Don H.3 years ago

Refusing to prosecute Wall Street criminals is, in itself, a crime. That is just a fact.

Aludra N.
susan m.3 years ago

the bankers are the real problem, here and globally.... our gov't is hopelessly corrupt to the core. time for voters to think outside of the dem/rep box and throw them all out. unless we do, the only change we will see is it getting worse..

Billie C.
Billie C.3 years ago

holder will not go after anybody that might help obama. he's proven that over and over. holder should be the one in handcuffs for not doing his job.

Randi Levin
Randi Levin3 years ago

The Justice Department

WHAT JUSTICE?????

Ernie Miller
william Miller3 years ago

WOW greed takes over again

Sarah Hill
Sarah Hill3 years ago

Tina G - "Vote Democrat"? Who do you think is running the DOJ?

Carl O.
Carl O.3 years ago

That's a mistake. The DOJ should be forcing Goldman Sachs execs to do the perp walk in front of cameras with their hands cuffed behind their backs. Unless some of the criminals are made examples of the rest will not feel threatened and fall into line. Where is Eliot Spitzer when we need him? The perp walks would have been televised weekly events. I thought Spitzer had a chance to become the first Jewish President of the United States of America, but his pride and hubris got in the way. Why couldn't he have keep it in his pants?

Katie K.
Katie K.3 years ago

Why is it that if you're rich it's ok to steal from the poor but if the poor take from the rich it's an abomination? An "they" wonder why we're all so angry. Keep us hungry and scared and we won't revolt? Look at history. We normal folk will only take so much. If we would all cease purchasing what they deal you are out of business. I guess that's what it will take since our justice system has failed us all so miserably.