The Mass Strike in Action: Goldman Sachs Now Hopes for Deal and Big SEC Fine

May 29, 2010 (LPAC)—High-flying Goldman Sachs, which spent the Spring arrogantly refusing to consider a settlement with the Securities and Exchange Commission on numerous charges it faced, has been brought back to Earth quickly by the growing mass-strike mood in the American population.

Yesterday's London Financial Times reports that Goldman Sachs is now "hoping" to avoid the SEC's fraud charge by admitting a lesser offense, and "agreeing to a fine of hundreds of millions of dollars." Goldman now "hopes" that the SEC will find it guilty on the charge of "omitting or misstating material facts" to investors in Abacus, a mortgage derivative. If the SEC would settle on the charge of "omitting or misstating material facts," without Goldman's admitting or denying it lied to clients, that would reduce Goldman's risk of being indicted for fraud by a criminal court; Goldman's risk of being sued by its investors, and avoid further damage to its reputation (clearly wishful thinking).

The fine which Goldman is now willing to pay is said to be $250 million—among the highest ever paid by a U.S. company. Lyndon LaRouche stated earlier this week, that fines to Goldman should begin at $250 billion. In addition, the SEC could demand that Goldman compensate the investors it swindled by buying out their exposure to the Abacus deal, at a cost of another $370 million. Two months ago, Goldman maintained it did nothing wrong and wouldn't pay a penny.

SEC rules require Goldman to settle with the SEC by June 16—60 days from the SEC's filing of charges on April 16—or else file a defense. If the case goes to court, the SEC is expected to ask for a jury trial—another Pecora moment.

In another demonstration of growing mass strike, billionaire Warren Buffett, who calls derivatives "weapons of mass destruction," while using them to destroy nations, yesterday received a subpoena to appear before the Financial Crisis Inquiry Commission chaired by Phil Angelides, after he refused to appear voluntarily.