About this iReport
  • Not verified by CNN

  • Click to view unclaimed's profile
    Posted June 7, 2012 by

    More from unclaimed

    More evidence of criminality at Goldman Sachs and Merrill Lynch (Bank of America) - 'Naked Short S


    More evidence of criminality at Goldman Sachs and Merrill Lynch (Bank of America) - 'Naked Short Selling' Regarding of efforts by banks to prevent public exposure of the extent of criminality in some of the largest financial institutions, inadvertent filing by an attorney for these institutions, disclosed evidence of deliberate "Naked Short Selling".  The evidence of criminality has been overwhelming all along, but criminal prosecution of the perps is yet to take place...  Failure to enforce banking regulation is likely to prolong the current crisis and exacerbate its ill-effects.        The chances of the law being enforced on Bank of America or Goldman Sachs in a California court (or a US court for that matter) is slim, regardless of the facts or the law...  Here is how Karen Gullo wrote it up for Bloomberg: Goldman, Merrill E-Mails Show Naked Shorting, Filing Says Goldman Sachs Group Inc. (GS)  and Merrill Lynch & Co. employees discussed helping naked short-sales by market-maker clients in e-mails the banks sought to keep secret, including one in which a Merrill official told another to ignore compliance rules,  Overstock.com Inc. (OSTK) said in a court filing. The online retailer accused Merrill, now part of  Bank of America Corp. , and Goldman Sachs of manipulating its stock from 2005 to 2007, causing its shares to fall. Clearing operations at the banks intentionally failed to locate and deliver borrowed shares for clients shorting stocks, including two traders who were fined and suspended from the industry, Overstock’s attorneys said in court filings earlier this year. Lawyers for Overstock, whose  California  state court lawsuit in San Francisco was dismissed in January, asked a judge to make public e-mails sent in 2005 and 2006 that it said “reflect business decisions to put profits and corporate ambition over compliance” at Goldman Sachs and Merrill. The banks’ decisions to intentionally fail to deliver Overstock shares caused large- scale naked short selling of the company’s stock, according to the filing. After a Merrill executive expressed concern that a colleague intentionally failed, or didn’t complete, a short sale, an executive at the clearing unit responded with an expletive, telling the executive to ignore “the compliance area -- procedures, schmecedures,” Overstock lawyers said in the filing, citing an excerpt from a May 2005 e-mail. The Merrill executive later told a judge the statement was a joke, Overstock said in the Feb. 9 court document. Largest Client According to the Overstock filing, Wolverine Trading LLC, the Goldman Sachs clearing unit’s largest client, was told in an undated e-mail that “we will let you fail,” in response to an inquiry by Wolverine about whether there was an effort “at cleaning up” fails. The sender isn’t identified in the filing. An e-mail sent by John Masterson included “nonpublic data concerning customer short positions in Overstock and four other hard-to-borrow stocks to Maverick Capital, a large hedge fund that sells stocks short,” Overstock lawyers said in the document.  Michael DuVally , a spokesman for Goldman Sachs, said a John Mas

    Add your Story Add your Story