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Re: Goldman Sachs looks to pitch port-rail investment (Humboldt Bay)
Author: H.Todd Messinger
Date: 05-28-2008 - 01:16
By the way, lest some rail fans get too foamed up concerning the recent Eureka Time-Standard piece about a Goldman Sachs V-P suggesting a new kind of investment scheme, involving this time the shipping and transportation industries, particularly the defunct Northwestern Pacific RR and the shallow, isolated Humboldt Bay-Eureka, CA Harbor, know that Goldman Sachs, et al., is being sued for fraudulent practices arising out of the subprime-mortgage bubble.
As Michael Hirsh writes for NEWSWEEK, May 24, 2008: "According to FBI spokesman Bill Carter, 19 'large institutions' are being investigated for corporate fraud, in addition to more than 1,200 individual cases of mortgage fraud. One area of inquiry, Carter says, are deceptive sales practices related not just to mortgage fraud in places like Cleveland but to how such mortgages were packaged into complex securities called 'collaterized debt obligations.' Among the targets are 'major subprime lenders' and investment banks, Carter says. 'We're going after people right at the top,' says another FBI spokesman, Steve Kodak."
"Earlier this year the city of Cleveland, suffering one of the highest foreclosure rates in the country, filed a lawsuit in the Court of Common Pleas in Cuyahoga County against 21 major investment banks and lenders. The suit contends that major Wall Street firms such as Goldman Sachs, Citigroup and Bear Stearns were a 'public nuisance' that depleted Cleveland's tax base and destroyed its urban-renewal programs."
As Michael Hirsh writes for NEWSWEEK, May 24, 2008: "According to FBI spokesman Bill Carter, 19 'large institutions' are being investigated for corporate fraud, in addition to more than 1,200 individual cases of mortgage fraud. One area of inquiry, Carter says, are deceptive sales practices related not just to mortgage fraud in places like Cleveland but to how such mortgages were packaged into complex securities called 'collaterized debt obligations.' Among the targets are 'major subprime lenders' and investment banks, Carter says. 'We're going after people right at the top,' says another FBI spokesman, Steve Kodak."
"Earlier this year the city of Cleveland, suffering one of the highest foreclosure rates in the country, filed a lawsuit in the Court of Common Pleas in Cuyahoga County against 21 major investment banks and lenders. The suit contends that major Wall Street firms such as Goldman Sachs, Citigroup and Bear Stearns were a 'public nuisance' that depleted Cleveland's tax base and destroyed its urban-renewal programs."
