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Democracy or “Lobbyocracy”?


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Democracy or “Lobbyocracy”?

Arshad M Khan

In July, the SEC fined Goldman-Sachs $550 million for failing to disclose vital information in selling an investment. But if there were fraud, as alleged, then why not a criminal case? John Paulson at Goldman-Sachs selected packages of mortgage loans that were most likely to fail and bet against them. At the same time, Goldman sold these to clients deceptively as ‘least likely to fail', and, as endorsed independently by ACA Capital Management. Goldman is not alone. In all six major lending institutions investigated, there has been evidence of fraud as well