Carl Levin: Another "Big Shoe to Drop" on Goldman

[Truth2Tell]

Source: Newsweek

Michael Hirsh
Monday, April 19, 2010 12:50 PM

Washington is suddenly looking very unkind to the firm that used to be known as "Government Sachs." Now the Senate's Permanent Subcommittee on Investigations, led by Carl Levin, Democrat of Michigan, is planning to focus hearings scheduled for next week at least in part on Goldman Sachs's role in the financial disaster. Levin's staff has uncovered new documents "that link certain actions to specific people" at Goldman, according to a senior legislative official who spoke on condition of anonymity. The official would not divulge the nature of the allegation but said that Levin believes it amounts to "another big shoe to drop on Goldman." Spokespeople for Levin said they were not prepared to discuss the nature of the probe, but his committee has been conducting several weeks of hearings and one is planned for April 27 on "the role of the investment banks." "We expect to have some information tomorrow," spokesman Bryan Thomas said Monday.

Levin has been one of the most aggressive Democrats in the Senate in pushing for more dramatic financial reform, and the first week of his subcommittee's hearings focused on the role of high-risk home loans in the disaster, using Washington Mutual Bank (WaMu) as a case history. Further hearings are expected to show how banks like WaMu obtained their know-how and securitization techniques from Wall Street. Last week the Securities and Exchange Commission filed civil fraud charges against Goldman related to the late stages of the subprime mortgage scandal, when some Wall Street firms were creating complex products like "synthetic CDOs" for the sole reason of shorting them and making money on their almost certain failure. SEC Director of Enforcement Robert Khuzami said the firm mislead investors by failing to tell them that a client that was betting against the mortgage market had helped to design a Goldman investment portfolio, "while telling other investors that the securities were selected by an independent, objective third party." Goldman has denied the charges, saying it withheld no material information from investors.

A year ago Levin was critical of what he called the reluctance of the Obama administration to take on Wall Street, saying: "Some of the people around the president needed to be given a push." Levin has also sought to rescind many of the laws that led to deregulation. Chief among them: the 2000 Commodity Futures Modernization Act, which exempted the credit-default swaps that brought AIG—and much of the financial system—to the brink of meltdown. Goldman's role in AIG's near-meltdown also has been a subject of various government inquiries.



Read more: http://blog.newsweek.com/blogs/thegaggle/archive/2010/04/19/carl-levin-another-big-shoe-to-drop-on-goldman.aspx

[aquart]

1. Destroy them. I care not how.

[metapunditedgy]

7. The free market almost did, but then we bailed them out. n/t

[earcandle]

13. How sweet...oh yeah.

[Truth2Tell]

14. It will take more than just Levin

to destroy them. More shoes to drop. A big Obama shoe would help a lot.

[truedelphi]

15. Hopefully this is about shoes dropping

But often the idea that things are about to be stirred up, just is a rallying cry for the lobbyists to descend on Washington.

[CountAllVotes]

2. kick & recommend!!

:popcorn: :popcorn: :popcorn: :popcorn: :nuke:

:kick:

[polichick]

3. Good news - let the criminals get what they really deserve instead of big bonuses. nt

[amandabeech]

4. Drop 'em Carl, drop'em!!!

I love my Levins!

From a Michigan ex-pat.

[SharonRB]

8. Me,too

And I'm glad they're still mine -- both of 'em.

[amandabeech]

10. You're very fortunate to live in Sandy's district.

I'm from the other side of the state in Hoekstra's district. Before him was guy VanderAss, oops, VanderJagct. They are and were total assholes.

I wish that I could be back there working against the pugs, but there are no jobs for me.

I'll retire there, though, and watch out!

Keep fighting!

[SharonRB]

11. I know I am, and I just hate that Sandy has a primary this year

He usually doesn't have to worry about it, and he'll be fine in the general, but this primary makes me nervous -- especially in the Macomb part of our district.

[amandabeech]

12. Who's stupid enough to run against him.

I often read the Muskegon paper on line, but they don't cover Detroit.

What's a dem got against Sandy

I imagine Macomb is always a problem. However, I would think that they would be voting R in the general if they dislike Sandy.

I'm interested. I never really understood Detroit Metro politics. It's very different from out-state.

[SharonRB]

19. Mickey Switalski, a term-limited state rep from Macomb

is running against him in the primary. I hate term limits. He just wants another job.

[amandabeech]

22. I agree with you on term limits.

Switalski sounds like a piece of work.

[dmr]

27. Do you know when he decided to primary?

I ask, because I was just looking at Carl's email (dated March 17 - "My Best Friend") about his brother, and wonder if there is a correlation between Switalski challenging Sandy, or if he's taking advantage of a GOP-type game changer.

In it he says:

My brother, Sandy Levin, recently became Chairman of the U.S. House Ways and Means Committee. An enterprising reporter discovered that it has been 187 years since the last pair of brothers served in Congress as Committee Chairmen at the same time!

Now that Sandy is Chairman, he is going to have to take extra care about his own re-election. The day he became Chairman, the Republican National Committee sent out a nasty email, "Who is Sander Levin," spreading lies and mischaracterizations to try to muddy his image.

[SharonRB]

37. Oh, it was long before he became chair of W&M

I think it was as far back as last fall or so that I knew about it.

[PassingFair]

38. Nothing to worry about, Sharon....

We love him here, too.

I think Switalski is just trying to establish himself
as the heir apparent.

He'd be an IDIOT to run a dirty primary.

[Demeter]

5. Promises, promises

We shall see.

[BunkerHill24]

6. YeaH, YEAH...I believe it when I see it.

Until then, have him retire (and his brother....I am not amused by this, and I don't like politicians like him seated for life.

[dmr]

17. You want the Levin brothers to retire? Why?

You do realize that both are intelligent and honorable men. They are consistently liberal.

[SharonRB]

24. And never a stitch of scandal surrounding either of them

They are two of the most trustworthy, honest, ethical and reliable members of Congress, and I'm proud to be represented by both of them.

[BunkerHill24]

26. It's my preference. n/t

[Inuca]

33. Not much of an explanation n/t

[FailureToCommunicate]

9. Throw a sandal at them while you're at it!

And make sure we get our money back, plus interest AND damages!

[truedelphi]

16. What name seems to be ignored when discussing all this?

Even though some five thousand articles have been written since it was announced that GS was in deep doo doo last week, there is one name that is not mentioned too often.

Read about it here:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x77953

[JackRiddler]

28. Moody's? Geithner?

Oh, Greenspan!

[JNelson6563]

18. Carl Levin rocks.

Yes, Michigan says "You're welcome" to the rest of you for sending him to DC.

Julie

[chill_wind]

20. I remember when Sen Levin threatened to subpoena Geithner

last Feb/Match over Citi documents/shenanigans he was sitting on. He was very openly angry about it. Very pleased to see him on the helm once again on this.

K & R.

[lonestarnot]

21. JMJ!

Do it now while there is still time to avoid the exposure! :evilgrin:

[SOS]

23. Open the floodgates, Sue! Sue! Sue!

Hopefully every government, pension fund, union and municipality that bought crooked GS CDOs will
sue the hell out of this stinking company.

The government of Germany is currently putting together a lawsuit against them.

[Roland99]

25. Finger-pointing? Deal-making?

I don't care what's the source behind all of these "revelations" but I'll take it!

[Romulox]

29. Umm, do Goldman employees in the cabinet get some sort of immunity then?

:wtf:

[ozone_man]

30. The elephant in the room.

Meet the new boss, the same as the old boss. Rubin, Summers, Geithner, Bernanke have all got to go. Reinstall Glass-Steagall, break up the too big to fail banks...

[Inuca]

34. Your list

Rubin is not in the cabinet, Geitner and Bernanke never worked for Goldman (sure about Geithner, 99% sure about Bernanke), and I don't think Sumners worked for them either. So what exactly was your point?

[Romulox]

35. You "don't think", eh?

http://www.salon.com/news/opinion/glenn_greenwald/2009/04/04/summers

[chill_wind]

31. Not if Sen Carl Levin could have anything to say about it.

That's my impression. And he knows a lot more about a lot of the dirt than he did even a year ago.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4979094#4982160

[Romulox]

36. I know Carl as a lap dog. If he gives 'em hell, he'll earn my respect.

But dimes to doughnuts he'll be loyal to the Party.

[DemoTex]

32. Give 'em the shoe! Nay, BOTH shoes!