Goldman Sachs Commits Fraud With Computers-Attorney General Eric Holder Conceals Their Disaster Capitalism
There is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways. “Run for your lives if it gets in the wrong hands!”-Jonathan Weil
A hard hitting Post by Badabing highlights yet more fraud from Goldman Sachs, “AG Holder asks Judge to Seal Goldman Sachs Courtroom Case”. Eric Holder and his Department of Justice are betraying the American people as they coverup corporate corruption. Just as the Supreme Court has promoted Corporations to be superior to human beings, Holder has promoted Goldman Sachs to be immune from the Law.
Eric Holder wants a “closed” courtroom to protect the “Trade Secrets”. But these Trade Secrets might be used for Stock Market Fraud. Apparently that possibility has not occurred to the Department of Justice. Holder continues to protect and coverup the crimes of GS, even changing the Law. This newest corporate privilege is expanding the definition of Trade Secrets to include any evidence that could be incriminating.
1. The Great Vampire Squid is not Vampyroteuthis Infernalis
Goldman Sachs officially became a bank so it is no longer a collection of fraudster salesmen selling toxic financial products. It is a collection of bankster salesmen now, who steal anything. Goldman Sachs robbed people of educations with crooked student loans. They stole lifetime savings with crooked health care insurance. They even destroyed the Montana Power Company. Why? Because GS exemplifies the worst in American Disaster Capitalism.
For nearly 90 years, the Montana Power Company exemplified the very best of American capitalism. It provided cheap, reliable electricity for the people of Montana, excellent benefits for thousands of employees and generous, reliable dividends for its stockholders…
And at the M&M, a 24-hour bar and restaurant that hasn’t locked its door since the 1880s, people are out for blood. “The whole thing was just wrong what they did. People here losing money and they have no retirement,” says one waitress. “They have nothing coming in. Companies shouldn’t be able to do that. I don’t think anybody ever thought we’d never have Montana Power.”
Some of those involved were in New York City, at the huge Wall Street investment firm of Goldman Sachs. As financial advisors to Montana Power, Goldman Sachs executives made more than 100 trips to Montana urging the company to get out of the utility business.
They also destroyed the economy of Greece the old fashioned way, lying, cheating and stealing. Goldman Sachs has a unique business model that is of course, a Trade Secret. That Secret is: It is easier to break things than to make things, and they must keep it secret that they are ghouls feeding on the corpses of their victims.
Goldman Sachs fraud certainly was a main cause for the present economic failure, recession and a war economy with high unemployment. The Disaster Capitalists and their partners, Henry Paulson, Paul Bremer, the other Paulson, KashAndKari, Blankfein, Peter Peterson, Stephen Friedman, destroyed economic prosperity for fun and profit.
These very respectable people also are war criminals and war profiteers who conspired to give us the endless oil wars, especially Peterson. The many crimes of The Great Vampire Squid are too numerous to list, but GS and its accomplices are as bad or worse than any organized crime family. If the Department of Justice does not stop them, Goldman Sachs will sooner or later crash the whole economy, as they did in 1929 and 2008. Probably sooner.
2. The Doomsday Machine Must Be Kept Secret As It Crashes Markets
Eric Holder must take responsibility. Goldman Sachs is probably the most powerful corporation in the world. Any decisions to prosecute or not, would have to be made by the Attorney General. Holder is prosecuting a Russian immigrant and former GS employee, Sergey Aleynikov, for stealing the “Doomsday Machine”, a GS computer program. It was suggested to Badabing in a comment, that the appropriate response would have been to squeeze Aleynikov to reveal GS criminality.
Aleynikov, 39, is the former Goldman computer programmer who was arrested on theft charges July 3 as he stepped off a flight at Liberty International Airport in Newark, New Jersey. That was two days after Goldman told the government he had stolen its secret, rapid-fire, stock- and commodities-trading software in early June during his last week as a Goldman employee. Prosecutors say Aleynikov uploaded the program code to an unidentified Web site server in Germany.
But Sergey is no bolshevik, and he made $400,000 a year using GS Flash Trading. He is accused of stealing from Goldman Sachs! Oh the horror! Goldman Sachs is a victim. Flash Trading or High Frequency Trading is the new “churning”. Old school churning was stockbrokers would make unnecessary stock trades to increase their fees. Flash Trading adds computer decision making and near instantaneous transactions. They still get the inflated fees but they also manipulate trades to artificially drive stock prices up or down. Flash Trading has already crashed the Stock Market once.
Assistant U.S. Attorney Joseph Facciponti admitted that the Doomsday Machine could be be used for fraud and market manipulation, because GS told him. But the Department of Justice thinks Goldman Sachs should not have their proprietary program revealed, even though it is obvious that GS is committing “Front Running” fraud.
In addition, because of the way this software interfaces with the various markets and exchanges, the bank [Goldman Sachs] has raised a possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways.
What this program does is connect and draw information from stock exchanges around the country, and it draws them in very small increments of time. One of the bank officers described it as milliseconds of time. And it is very efficient at processing that stock information and sending to the bank’s programs that conduct trades based upon algorithms that are developed by mathematicians and physicists.
Damn Physicists, damn Math guys, making algorithms that rob people of their life savings as they manipulate the market in unfair ways. Obviously, Facciponti does not have much imagination about who else could manipulate the market in unfair ways. GS shill Facciponti wants to keep the computer code a Trade Secret, and out of Court, instead of investigating obvious evidence of another GS crime spree.
But there is more evidence to conceal. Facciponti wants to declare the GS strategy and business practices trade secrets. Facciponti wants to label any evidence that implicates GS, trade secrets. The banksters secretly added secrecy provisions to the treacherous and treasonous “Patriot Act”. This gives banksters special protection to commit crimes. Goldman Sachs now owns the Department of Justice and Joseph Facciponti. Facciponti has a promising career in his future, as a Wall Street fraudster himself.
Federal prosecutors in Manhattan have asked a judge to seal the courtroom in an upcoming corporate-espionage trial to protect the secret of Goldman Sachs’ controversial high-speed trading software.
Prosecutors in the Southern District of New York asked the judge last week to close the courtroom for portions of testimony involving the company’s proprietary software, and to seal exhibits and transcripts pertaining to the company’s trade secrets…
In their motion, prosecutors also asked that evidence and arguments about the nation’s financial crisis not relevant to the case be excluded from the trial.
Specifically, prosecutors asked that information about Goldman Sachs’ receipt of funds from the government’s bank bailout program be excluded, as well as information about the company’s bonus pool, bonuses and salaries paid to Goldman Sachs employees other than programmers relevant to the case. They also want civil and regulatory proceedings involving Goldman Sachs to be precluded, and information about SEC investigations of, and proposed regulation of, high-frequency trading.
High-speed trading software has been in the crosshairs since a recent SEC investigation found that trading algorithms were responsible in part for a drastic one-day stock-market crash last May.
Prosecutors asserted in their motion that “the legality of high-frequency trading is not an issue here.”
It is not relevant that GS crashed the economy in 2008. It is not relevant that GS received tens of billions of taxpayer bailout funds. It is not relevant that financial decisions affecting millions of ordinary people are based on questionable computer program decisions, without any responsibility by actual human beings.
Possibly the computer source code itself, should properly be classified a “Trade Secret”, but no other evidence in this criminal trial should be suppressed. Aleynikov does claim that he is innocent and transferred open source computer code. So it is logical that the computer code be checked to see if it is open source. There are licenses for open source and it would not be a surprise if GS was violating those licenses, and even stealing code themselves. But to close the Court room to only evidence approved by GS and their sock puppet Facciponti, is itself evidence of a corrupt justice system that has made human beings slaves to corporations.
A conspiratorial mind set could imagine any possible scenario to explain why Facciponti went to a Federal Judge on the 4th of July Holiday to protect Goldman Sachs. For instance, one crazy outrageous explanation, might be that the GS code contains a “back door” that allows their program to be remotely controlled, by unscrupulous people in the government or Wall Street friends of Facciponti. Of course that is just silly conspiracy theorizing.
3. It doesn’t matter if it’s a good company or not, because GS will break anything or anyone.
It is relevant that Goldman Sachs moles are put into every important position of power in the Federal Government. The latest National Security Advisor, a lawyer for Goldman Sachs and Citigroup, and lobbyist for Fannie Mae Thomas Donilon seems exceptionally incompetent. The CEO of Overstock.Com, Patrick Byrne says “I think Goldman is a criminal enterprise.” He adds that the government regulator SEC is actually controlled by Wall Street crooks. And that the SEC has harassed him because of his criticisms of the corruption.
We can thank GS for telling us a few facts about their scorched earth investment strategy. Joseph Squeri, Goldman Sachs’ managing director of technology, stated very clearly, it is not about adding value to their investment products. It is all about artificially inflating value until the “bubble” bursts.
The market of today has become a “technical game”, Squeri says. Whoever has the best technology, wins. “Macro [is] driving trends now, rather than fundamental research…Doesn’t matter if it’s a good company or not.”
Fundamental research is so yesterday. The best technology wins. Good investments, bad investments, it is just a technical game. The Flash Crash on May 6 was a consequence of this reckless gambling. Squeri’s reassurances can only increase confidence for investors, the ones who have plenty of liquidity. I think that means you need to have plenty of money to cover the reckless gambling when you lose your bet, due to stupid computers and stupid algorithms. Goldman Sachs does have plenty of money, mostly other people’s money.
in reference to a technical glitch that sent markets into a tumbling frenzy on May 6th, Squeri said simply, “It was just a matter of time.”
“The crash exposed major faults in the system when there is a lack of liquidity”, one of the risks of a market that responds in milliseconds, facilitated by computers and complex algorithms.
4. A Genuine Victim of Department of Justice Censorship and Secrecy
Facciponti repeatedly called Goldman Sachs a “victim”. There are real victims of the DOJ secrecy and censorship. Marc Emery was persecuted by the Department of Justice and sentenced to five years imprisonment. His crime was selling marijuana seeds. For comparison, a police officer who was dealing drugs, 40 pounds of marijuana and 2 pounds of cocaine, received a one year prison sentence.
Update on Marc Emery, September 27, 2010
Emery’s case has become Top Secret. Goldman Sachs is not the only corrupt institution protected by Holder’s censorship. Six thousand pages have been totally blacked out that have no national security or trade secrets. The censored documents describe government persecution of Marc Emery by the Department of Justice, the DEA and the Canadian RCMP.
But the Department of Injustice is lying about the War on Marc Emery and that must be concealed. Marc Emery is a political prisoner of a corrupt and failed War on Drugs. Emery’s real crime was promoting the legalization of marijuana. The failed Trillion dollar War on Drugs must be continued because this endless war gives more unconstitutional power to the Federal Government to invade homes, steal bank accounts, and spy on any anti-corporate dissident.
He said he has no doubt why American federal authorities are out to get him: it was all told in the media statement by the U.S. Drug Enforcement Administration when he was arrested on July 29, 2005. Then DEA administrator Karen Tandy declared that his arrest was “a significant blow not only to the marijuana trafficking trade in the U.S. and Canada, but also to the marijuana legalization movement”.
The Department of Justice continues to claim marijuana causes significant physical harm. There is little if any evidence to support this. Humans have been productively using this herb for thousands of years. Active, potentially valuable biological compounds have been discovered in marijuana, for example that promote neurogenesis, growth of new brain cells. Research into proven health effects of marijuana’s unique biological compounds is suppressed by Holder’s Department of Justice. The fact that marijuana is environmentally positive, repairing and replenishing soil is certainly not relevant to the War on Drug profiteers or Facciponti.
This government censorship policy protects the illegal drug profits of the Drug Cartels, profits which are shared with the CIA. And government censorship protects Goldman Sachs. Holder’s Department of Justice spends more money and time prosecuting a marijuana activist, than it does investigating the criminal organization known as Goldman Sachs.
FREE MARC EMERY! DESTROY GOLDMAN SACHS!