EconomicCrisis.US

Goldman Sachs came under fresh pressure this morning after it was revealed the Wall Street powerhouse faces a criminal investigation into mortgage security deals it arranged.

The inquiry follows civil fraud charges filed by the government against Goldman two weeks ago.

The U.S. attorney’s office in Manhattan opened the investigation following a criminal referral by America’s financial watchdog, the Securities and Exchange Commission.

The SEC brought civil fraud charges against Goldman and a trader in connection with the transactions in 2006 and 2007.
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Protesters rallied in downtown New York City Thursday to voice their anger over what they perceive as the roles Wall Street and big banks played in America’s economic crisis.

Marching from City Hall to Wall Street, the protesters chanted “good jobs for all,” and held signs with messages including “Hold banks accountable,” “Make Wall Street Pay,” and “Reclaim America.”

The AFL-CIO organized the rally, and union President Richard Trumka addressed the crowd, saying, “How long will we allow the spirit of greed to continue to drive us into economic holes?”
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Why regulate a broken system when we can build a better one? Welcome to New Economy 101.

Financial reform is the Congressional political issue of the month. Democrats say their bill will place essential controls on Wall Street to prevent abuse and a repeat of the financial crash. Republicans say it will encourage further Wall Street risk-taking by giving the big banks a guarantee of a future taxpayer bailout if reckless decisions trigger another financial crash.

Each party would have us believe that its side has the better answer about how to prevent another financial collapse, limit future taxpayer exposure, and protect consumers from financial fraud. These are good objectives, but their focus is fixing Wall Street.
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The financial crisis of 2008 and the severe economic recession that followed have had significant impacts on every aspect of American life. South Dakota may be hundreds of miles from Wall Street, but we felt it, too. We have as much at stake in financial regulatory reform as anyone else, because South Dakota isn’t insulated from higher unemployment, less access to credit and a stagnant economy. That’s why it’s critically important to ensure this near financial collapse never happens again by addressing gaps and failures in the regulatory system that contributed to the meltdown.
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