Climate Change > Antarctic Sea Ice increasing; Goldman Sachs abandons climate agreement

 

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Goldman Sachs quits global climate coalition for banks 

Banks joining the voluntary NZBA agree to align with the world's aim of reaching net-zero emissions by 2050, set targets to help get them there and publish progress on their efforts each year, something Goldman Sachs said it would continue to do.

This article was published in thejakartapost.com with the title "". Click to read: 

https://www.thejakartapost.com/business/2024/12/07/goldman-sachs-quits-global-climate-coalition-for-banks.html.

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Corruption is Everywhere - Malaysia's 1MDB Fund, Deloitte, Goldman Sachs; Two Bundestag MPs Capitalizing on Covid 19

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Deloitte to pay Malaysia $80mn for its role in pilfering

of state fund 1MDB

3 Mar, 2021 15:01

Kuala Lumpur, Malaysia © Pixabay.com

Deloitte will pay Malaysia’s government $80 million to resolve all claims related to its auditing of accounts of scandal-linked state fund 1MDB and its unit SRC International from 2011 to 2014.

The Finance Ministry said on Wednesday that “The successful out-of-court settlement with Deloitte will expedite the payment of monies to fulfill 1MDB and SRC’s outstanding obligations, which would otherwise be delayed by potentially protracted and costly court battles.”

Deloitte has been under scrutiny for its role in auditing the financial statements of the 1Malaysia Development Berhad (1MDB) state fund. The multibillion-dollar scandal involved top Malaysian officials, including former Prime Minister Najib Razak, who was sentenced to 12 years in jail after being convicted on charges related to theft from the fund.

In 2019, Malaysia’s securities regulator fined Deloitte 2.2 million ringgit (about $543,000) for failing to report irregularities in relation to an Islamic bond issued by a 1MDB-linked company. After the US Justice Department filed civil lawsuits in 2016 over 1MDB, Deloitte said the 1MDB financial statements it had audited should no longer be relied upon.

Malaysian and US authorities estimate that at least $4.5 billion was stolen from 1MDB between 2009 and 2014 by senior officials of the fund and their associates.

In October, Goldman Sachs (Asia), which was the main banker for the fund and helped it to raise $6.5 billion through bond sales, was fined $350 million by Hong Kong’s Securities and Futures Commission for its role in the corruption saga. The fine is the highest ever imposed by the Hong Kong markets’ watchdog.

The money siphoned off from Malaysia’s state coffers was used to buy everything from artwork and jewelry to real estate and a superyacht. Some of the cash helped to finance the movie ‘The Wolf of Wall Street’, which earned actor Leonardo DiCaprio a Golden Globe for his performance as a stock market scammer.

Scandal over face mask business deals forces German MP

from Angela Merkel’s party to quit

7 Mar, 2021 20:23

German MP Nikolas Löbel, a member of Chancellor Angela Merkel’s CDU party, will quit parliament and not seek re-election. The reason? A series of deals on protective face masks that landed Löbel around €250,000.

As the coronavirus pandemic took hold in Germany, a company owned by Löbel brokered deals between a Chinese face-mask manufacturer and healthcare companies in the cities of Heidelberg and Mannheim. The contracts netted the 34-year-old MP a cool €250,000 ($298,000), Der Spiegel reported on Friday.

Löbel, who initially defended his deal as “in line with the market,” was bombarded with calls to resign, and on Sunday announced that he would retire from politics at the end of August, and from the CDU and its sister party, the CSU, immediately.

“Being a member of the German Bundestag and being able to represent my home city of Mannheim, there is a great honor and special moral duty,” he wrote in an apology statement to German media. “I take responsibility for my actions and draw the necessary political consequences.”

Löbel’s August retirement date wasn’t soon enough for his opponents, who continued to press for his immediate resignation. After a meeting on Sunday afternoon, his own party sided with the opposition, demanding that Löbel “complete this withdrawal from all offices and mandates” by the end of March. 

By Saturday evening, it was still unclear whether Löbel would honor his party’s demand.

Löbel is not the first CDU politician embroiled in a mask-supply scandal. Georg Nüsslein, a CSU lawmaker from Bavaria, has been accused of lobbying the government on behalf of a mask supplier last year, earning €660,000 ($800,000) that he then didn’t pay tax on. 

Nüsslein denied any wrongdoing, but resigned on Friday from his post within the CDU/CSU parliamentary group, and announced that he would not seek reelection in September.

Corruption is Everywhere - Certainly at Goldman Sachs

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Hong Kong slaps Goldman Sachs with record fine over looting

of Malaysia’s state fund

22 Oct 2020 14:54

© Reuters / Brendan McDermid

Goldman Sachs (Asia) has been fined $350 million by Hong Kong’s Securities and Futures Commission (SFC) for its role in a multibillion-dollar scandal that involved top Malaysian officials, including its former prime minister.

The fine is the highest ever imposed by the Hong Kong markets’ watchdog. The SFC said on Thursday that the regional unit of the US investment bank was fined due to “serious lapses and deficiencies in its management supervisory, risk, compliance and anti-money-laundering controls that contributed to the misappropriation of $2.6 billion” from three bond offerings in 2012 and 2013 that raised $6.5 billion for 1Malaysia Development Berhad (1MDB).

The SFC added that Goldman Sachs (Asia) in Hong Kong had significant involvement in the origination, approval, execution and sales process of the three 1MDB bond offerings.

According to the commission, the Wall Street bank received $581.5 million in fees from 1MDB, inclusive of $567 million in commission from the three bond sales. Its Hong Kong unit alone collected $210 million, or 37 percent of the total fees from the debt sales, the largest chunk among various Goldman Sachs entities.

“This enforcement action is the result of a rigorous, independent investigation conducted by the SFC into whether Goldman Sachs (Asia)’s involvement with 1MDB in 2012 and 2013 contravened the standards expected of firms under Hong Kong regulations,” said Ashley Alder, the SFC’s chief executive.

“The penalty in this case – assessed solely in accordance with Hong Kong’s own fining framework – reflects our findings that Goldman Sachs (Asia) failed to deal properly with numerous suspicious circumstances surrounding the 1MDB bond offerings. These failures led to multiple, serious breaches of the rules which set out the high standards of behavior expected of all firms supervised by the SFC,” Alder added.

Last year, the SFC banned former Goldman Sachs (Asia) partner Tim Leissner from working as a securities and financial adviser in the city for life, in relation to the 1MDB corruption scandal. Leissner pleaded guilty in August 2018 to criminal charges brought against him by the US Department of Justice for money laundering and corruption.

1MDB was set up in 2009 by Najib Razak, then-prime minister of Malaysia, who was sentenced to 12 years in jail after being convicted on all charges related to the fund. Goldman Sachs was the main banker for the fund and helped it to raise $6.5 billion through bond sales. However, much of the funds were misappropriated during the process by government officials and two Goldman bankers, while the bank was accused of covering up the looting of the nation’s state fund. 

Superyacht Equanimity - purchased with funds pilfered from 1MDB

The money siphoned off from state coffers was used to buy everything from artwork and jewelry to real estate and a superyacht. Some of the cash helped to finance the movie, ‘The Wolf of Wall Street,’ which earned actor Leonardo DiCaprio a Golden Globe for his performance as a stock-market scammer.

In September, Malaysia dropped criminal charges against Goldman Sachs after the bank agreed to pay $4 billion in compensation. However, that did not prevent the Wall Street bank from facing prosecution linked to the 1MDB saga in other countries.

Search this blog for 1MDB for more background on this story.

Corruption is Everywhere - According to Malaysia, Even in Goldman Sachs

Malaysia charges 17 current & ex-Goldman Sachs bosses with looting of country's wealth fund

FILE PHOTO: The Goldman Sachs stall on the New York Stock Exchange © Reuters / Brendan McDermid

Malaysia has extended pressure on Wall Street titan Goldman Sachs, filing criminal charges against 17 current and former directors of the bank’s subsidiaries over alleged involvement in the multi-billion-dollar 1MDB scandal.

Goldman Sachs has been under scrutiny for its role in helping to arrange $6.5 billion through bond offerings for Malaysian state fund, the 1Malaysia Development Berhad (1MDB). The fund is at the center of one of the biggest financial scandals of all time, and is now being investigated for money laundering.

In the filings issued on Friday, Malaysian Attorney General Tommy Thomas said the executives mentioned in the document should be held responsible for the US bank’s role in the scheme. The prosecution wants to seek custodial sentences and criminal fines for the accused, “given the severity of the scheme to defraud and fraudulent misappropriation of billions in bond proceeds, the lengthy period over which the offenses were planned and executed.”

Each charge carries a maximum jail term of 10 years and a penalty of at least 1 million ringgit ($239,000), according to Reuters.

The list includes 17 people who were in charge of three Goldman Sachs subsidiaries between May 2012 and March 2013, during which the alleged fraud took place, according to the attorney general. Richard Gnodde, who leads the bank’s international business in London, as well as Canadian business executive Michael Evans, a former Goldman Sachs Asia chief who is currently the president of Chinese e-commerce giant Alibaba, were among those charged on Friday. British banker Michael Sherwood, former vice chairman of the Wall Street firm, is also on the list.

The latest case adds to last year’s accusations, when Malaysian authorities filed charges against three Goldman Sachs units and two ex-employees. Kuala Lumpur is seeking $7.5 billion in compensation from the bank.

The US investment bank has repeatedly denied any wrongdoing, claiming it fell victim to the previous corrupt Malaysian government. Commenting on the latest accusations, Goldman Sachs said the charges were misdirected and promised to “vigorously” contest them.

Corruption is Everywhere - Certainly in Malaysia Where Superyachts Go for Half Price

Former Malaysia PM pleads 'not guilty' in 1MDB corruption trial

By Clyde Hughes

Former Malaysian prime minister Najib Razak (L) leaves the Kuala Lumpur High Court, Malaysia Wednesday.
Photo by Fazry Ismail/EPA-EFE

(UPI) -- Former Malaysian Prime Minister Najib Razak pleaded not guilty Wednesday to charges of corruption at his trial in Kuala Lumpur.

Prosecutors have charged Razak with criminal breach of trust, abuse of power and money laundering in connection with $14 million from SRC International, a former unit of the state-run 1Malaysia Development Berhad, or 1MDB.

Razak answered the charges in an appearance Wednesday.

Authorities in Malaysia and the United States believe $731 million of the money was funneled to Razak's private bank accounts. The amount is a small part of what prosecutors actually think Razak, 65, actually received. The former leader has denied wrongdoing throughout his prosecution, saying the charges are politically motivated.

"Evidence will establish that the personal checks were issued for, among others, payment for renovation works carried out at [Razak's] residence at Jalan Langgak Duta and residence in Pekan, Pahang and ... component political parties," Malaysian Attorney General Tommy Thomas said in court Wednesday.

Thomas argued that Razak wielded "near-absolute power" during his time as prime minister, between 2009 and 2018, and the former leader believed he was above the law.

Malaysian financier Jho Low, who's believed to be the mastermind behind the 1MDB case, faces charges in Malaysia and the United States. He is believed to be living in China, beyond the reach of U.S. and Malaysian authorities.

Malaysians voted Razak out of office last year in favor of rival Tun Dr Mahathir Mohamad.

Authorities in Malaysia have also filed criminal charges against Goldman Sachs in the case, arguing it helped 1MDB raise more than $6 billion from investors through what they say were false and misleading statements. The U.S. investment firm has worked to distance itself from the case and has apologized for the role of a former partner who pleaded guilty to charges related to the scandal.

Superyacht linked to Malaysia’s state fund looting scandal

sold for $126 million

A superyacht purchased with money pilfered from the Malaysian state fund 1MDB has been sold to casino operator Genting Malaysia Berhad.

The 91.5-meter luxury yacht Equanimity was bought on Wednesday, according to Malaysia’s Attorney General Tommy Thomas as cited by the Star newspaper.

The price offered by Genting was the best it had received since the yacht was put up for sale last year, he said. Genting will pay for it by end of the month.

Equanimity © AFP / Sonny Tumbelaka

“This judicial sale at USD$126 million (RM514.14 million), is historic, by any measure,” said Thomas. The deal “records a high-water mark for our judicial system in ensuring that market value is secured for a vessel sold through the processes of Court, without any discount.”

He added that “It is even more commendable that this is achieved in a very sophisticated high-end superyacht sale, where the pool of buyers is extremely small.”

Equanimity was among assets allegedly bought by Malaysia’s fugitive financier Low Taek Jho and his associates with money stolen from the fund. It was allegedly purchased for $250 million and was outfitted with a helipad, swimming pool, movie theatre, spa and sauna.

The US has filed forfeiture lawsuits against $1.7 billion of assets that were allegedly acquired with money embezzled from 1MDB, including a $1.29 million heart-shaped diamond and a $3.8 million diamond pendant that Low gave to Australian model Miranda Kerr. A $3.2 million Picasso painting was gifted by Low to actor Leonardo DiCaprio. Both celebrities have since handed the gifts over to US authorities.

Low, who has repeatedly maintained his innocence, faces charges including money laundering in Malaysia. He has been charged in absentia amid suspicions that he is hiding out in China.

The scandal with the Malaysian state fund has been making headlines for years and is being investigated in at least six countries. It involves high-ranking Malaysian officials including former Prime Minister Najib Razak who have been accused of helping to loot billions from the fund.

Malaysia also wants $7.5 billion in reparations from Wall Street investment bank Goldman Sachs, which it accuses of covering up the looting of the nation’s state fund. Malaysia filed criminal charges against the US bank and two of its key bankers, accusing them of misappropriating money, bribing officials and giving false statements when helping to arrange bond sales for 1MDB. The bank has denied the allegations, claiming it fell victim of the previous corrupt Malaysian government.

Ex-Credit Suisse Bankers Arrested on US Charges Over $2bn Fraud Scheme

Corruption is Everywhere - but in a Swiss Bank? Say it ain't so!

The Credit Suisse logo in Geneva © Reuters / Denis Balibouse

Three former bankers of the second-largest bank in Switzerland, Credit Suisse Group AG, were arrested in London over an alleged connection to a $2bn Mozambique fraud scheme, according to US justice authorities cited by media.

The three suspects – former managing directors Andrew Pears and Surjan Singh, as well as the vice president in the global financing unit, Detelina Subeva – were charged with conspiring to violate US anti-bribery law, money laundering, and securities fraud in an indictment issued in a federal court in Brooklyn, New York, Reuters reported.

The three men were released on bail after their arrest in the British capital on Thursday but may face extradition to the US.

The bank itself was spared of the charges and says it was kept in the dark by its own staff.

“The indictment alleges that the former employees worked to defeat the bank’s internal controls, acted out of a motive of personal profit, and sought to hide these activities from the bank,” Credit Suisse said in a statement.

The arrests of the three former Credit Suisse employees came less than a week after the former finance minister of Mozambique was arrested in South Africa as part of the same case. Manuel Chang is now fighting extradition to the US. A fifth suspect was also arrested earlier this week.

Between 2013 and 2016, Credit Suisse and other banks arranged $2 billion loans for Mozambique state-owned companies. The loans were initially aimed at maritime projects and coastline protection in one of the poorest countries in the world, but instead were plundered, with at least $200 million diverted for bribes and kickbacks. The companies created to operate planned maritime projects were a cover for the suspects to enrich themselves.

The loans were partly concealed from international donors and creditors, including the International Monetary Fund. After they were disclosed in 2016, international aid was withdrawn, sending the nation into crisis. The state-owned companies missed more than $700 million in loan payments after defaulting in 2016 and 2017, according to the indictment.

A similar case has recently been brought against Wall Street giant Goldman Sachs. In December, Malaysia filed criminal charges against the US bank and two of its key bankers over its role in the multi-billion dollar scandal with 1MDB state fund. Kuala Lumpur wants $7.5 billion in reparations from Goldman Sachs, which it claims covered up the looting of the fund.

Goldman Sachs Faces Criminal Charges in Malaysia for Helping Billions Vanish from State Fund

Corruption is Everywhere - in Malaysia, in Goldman Sachs, apparently

FILE PHOTO: A Goldman Sachs sign at the New York Stock Exchange © Reuters / Lucas Jackson

Malaysia filed criminal charges against Goldman Sachs and two ex-bankers over the multi-billion dollar looting of state fund, 1MDB. The US bank denies the accusation, claiming it was deceived by the previous Malaysian government.

The subsidiaries of the Wall Street banking giant and its former key employees, ex-chairman of Goldman’s South East Asia, Tim Leissner, and ex-managing director, Roger Ng, are accused of giving false statements when helping to arrange bonds for 1MDB, Malaysia’s Attorney General Tommy Thomas announced on Monday.

Malaysia says the accused wanted to misappropriate $2.7 billion from $6.5 billion in bonds, issued by 1MDB and underwritten by Goldman Sachs, in three separate offerings between 2012 and 2013.

Malaysia also filed charges against former employee of 1MDB Jasmine Loo Ai Swan and local financier Low Taek Jho, also known as Jho Low, who maintains his innocence. The prosecution believes the duo conspired with Leissner and Ng to bribe officials in order to procure the selection, involvement and participation of Goldman Sachs in these bond issuances.

Now Kuala Lumpur is seeking to take back the misappropriated $2.7 billion from Goldman Sachs as well as $600 million in fees received by the bank. The prosecution is demanding fines and up to 10 years behind bars for each of the accused. The fines may amount to at least 1 million ringgit ($240,000), according to the charge sheets, seen by Reuters.

Billions of dollars from the Malaysian fund were reportedly used to buy everything from Beverly hills mansions, yachts and a private jet to artworks among other things in a fraud that allegedly involved former Malaysian Prime Minister Najib Razak.

As Malaysia brought the charges, the bank hit back, claiming that it was the victim of deceptive Malaysian officials. The long-running scandal has already rocked the bank’s shares this year, which dropped more than 30 percent.

“Certain members of the former Malaysian government and 1MDB lied to Goldman Sachs, outside counsel and others about the use of proceeds from these transactions,” Goldman said in a statement cited by media. It added that the charges have no effect on its “ability to conduct our current business globally.”

Analysts warn that the scandal is just the tip of the iceberg of the bank’s “criminal” deeds. Despite being investigated in several countries, including in the US, no matter the crimes, Goldman chiefs will never go to jail as they are too close to both sides of the US political aisle, Jack Rasmus, professor of political economy at St. Mary's College told RT. He also warned that the bank is driving the world to the next financial crisis.

“They just haven’t been caught in the other places,” Rasmus said in an interview to RT. “We’re on the verge of another financial crisis that will make the last one pale in comparison and Goldman Sachs and businesses like them are at the center of the cause of this.”

Venezuelan Opposition Criticizes Goldman Sachs' $2.8B Bond Buy

My other blog is often about child-rape! This story is not so far removed from child-rape. It's about a predator financial institution taking flagrant and disgusting advantage of a country in trouble. It's remarkably like England's Pakistani men grooming, raping and sexually trafficking young British girls for their own pleasure. It happened thousands of times in many cities in England with many of the victims being orphans or runaways - children who were most vulnerable.

Venezuela is most vulnerable right now with its economy nose-diving and its hapless leader unable to do anything about it. So for a few pennies on the dollar he sells Venezuela's future to a leering, drooling monster only too happy to contribute to the complete collapse of an entire country for its own lust for money.

President Maduro needs money to pay for the army and police that he needs to control the population that is getting hungrier and more impatient by the day. It is a desperate country and Goldman Sachs has taken full advantage of that desperation. 

By Andrew V. Pestano

Julio Borges (top, 2nd L), president of Venezuela's National Assembly, has condemned Goldman Sachs' purchase of $2.8 billion in bonds from the state-run Petróleos de Venezuela, S.A., or PDVSA, oil company for a discounted $865 million. Photo courtesy of National Assembly

UPI -- Members of the Venezuelan opposition have criticized Goldman Sachs' discounted purchase for $2.8 billion of government petroleum bonds.

Venezuela's opposition-controlled National Assembly on Tuesday is debating Goldman Sachs' purchase of $2.8 billion of the bonds at a 69 percent discount. The unicameral legislature plans to issue a resolution condemning the sale.

The Wall Street Journal first reported Goldman Sachs' purchase from the Central Bank on Venezuela on Sunday. The company paid 31 cents on the dollar for bonds issued by Venezuelan state-run Petróleos de Venezuela, S.A., or PDVSA, oil company, the outlet reported.

Goldman Sachs paid $865 million to purchase $2.8 billion in bonds that mature in 2022. Some Venezuelan opposition politicians have accused Goldman Sachs of supporting Venezuelan President Nicolas Maduro's regime.

Angel Alvarado, a Venezuelan lawmaker representing the Miranda state, said Goldman Sachs is "supporting dictatorship and repression."

Venezuelan opposition politician Jose Guerra said Maduro's "government has made a predatory business for the country: gave $2.8 billion in bonds for just $865 million in cash."

Goldman Sachs confirmed the purchase on Tuesday.

"We are invested in PDVSA bonds because, like many in the asset management industry, we believe the situation in the country must improve over time," Goldman Sachs said in a statement.

National Assembly President Julio Borges said he was "outraged" by the U.S. company's purchase.

"It is apparent Goldman Sachs decided to make a quick buck off the suffering of the Venezuelan people," Borges wrote the company in a letter.

Keiser: Deutsche Bank ‘Technically Insolvent’, Running a ‘Ponzi Scheme’

Oh dear, here we go again

© Luke MacGregor / Reuters

Max Keiser hit out against Deutsche Bank in the latest episode of his RT program Keiser Report, saying the bank was “technically insolvent” despite assurances from German Finance Minister Wolfgang Schaeuble that he had “no concerns” over his country’s biggest bank.

Deutsche Bank shares are down 40 percent since the beginning of the year, falling below their price at the time of the 2008 financial crisis. The bank suffered record losses of €6.8 billion in 2015.

With a balance sheet now eclipsing JP Morgan’s, Keiser warned that the bank will sooner or later have to admit to insolvency and say “we need either a huge bailout or we gotta close up shop.”

However, German Finance Minister Wolfgang Schaeuble dismissed concerns over Germany’s biggest lender, telling Bloomberg he was not worried about its future.

Deutsche Bank CEO John Cryan also played down the concerns in a published letter to staff on February 9, describing the bank as “absolutely rock-solid” and “strong”.

“On Monday, we took advantage of this strength to reassure the market of our capacity and commitment to pay coupons to investors who hold our Additional Tier 1 capital,” Cryan wrote. “This type of instrument has been the subject of recent market concern. The market also expressed some concern about the adequacy of our legal provisions but I don’t share that concern. We will almost certainly have to add to our legal provisions this year but this is already accounted for in our financial plan.”

The bank’s contingent convertible (CoCo) bonds also plunged in value this year. CoCo bonds are designed to be converted to equity when the bank gets into trouble. They have no maturity date and come with no promise to investors that they will get their money back.

Coupon payments on the bond are contingent on the bank’s ability to keep its capital above certain thresholds. If the bank does not make a coupon payment, investors cannot call for a default.

Deutsche Bank said last week that they would likely be able to make its coupon payment for 2016, after telling investors last month that it couldn’t make its 2015 payments.

Keiser described the move as a ponzi scheme saying, “You can’t just miss coupon payments. It’s called insolvency.”

Super Rich Hide $21 Trillion Offshore, Study Says

Frederick E. Allen, Leadership Editor of Forbes.

Grand Cayman (left)
It's isn't beaches like this that draw the extremely wealthy to the Cayman Islands. (Photo credit: toddwickersty)

A new report finds that around the world the extremely wealthy have accumulated at least $21 trillion in secretive offshore accounts. That’s a sum equal to the gross domestic products of the United States and Japan added together. 

The number may sound unbelievable, but the study was conducted by James Henry, former chief economist at the consultancy McKinsey, an expert on tax havens and offshoring. It was commissioned by Tax Justice Network, a British activist group.

According to an early report on the study in The Guardian, Henry’s research shows that at least £13tn [$21 trillion] – perhaps up to £20tn [$31 trillion] – has leaked out of scores of countries into secretive jurisdictions such as Switzerland and the Cayman Islands with the help of private banks, which vie to attract the assets of so-called high net-worth individuals. Their wealth is, as Henry puts it, “protected by a highly paid, industrious bevy of professional enablers in the private banking, legal, accounting and investment industries taking advantage of the increasingly borderless, frictionless global economy“. According to Henry’s research, the top 10 private banks, which include UBS and Credit Suisse in Switzerland, as well as the US investment bank Goldman Sachs, managed more than £4tn [$6.2 trillion] in 2010, a sharp rise from £1.5tn five years earlier.

The report’s analysis, based on data from many sources including the Bank of International Settlements and the International Monetary Fund, indicates that enough money has left some developing countries since the 1970s to pay off all their debts to the rest of the world. “The problem here is that the assets of these countries are held by a small number of wealthy individuals while the debts are shouldered by the ordinary people of these countries through their governments,” the report says. Money has especially flowed out of oil producing states. Some $700 billion has left Russia since the 1990s: $305 billion has flowed out of Saudi Arabia since the 1970s, and about the same amount from Nigeria.

Henry calculates that some 92,000 people, a thousandth of a percent of the world’s population, control $9.8 trillion, and that if all the $21 trillion that has been off-shored earned 3% a year and were taxed at 30%, it would raise $188 billion in revenues, more than rich countries spend on aid to the developing world every year.

The rich in the USA pay on average about 15% taxes, much less than middle-class workers. That 15%, however, is based on reported income which does not include money filtered to off-shore tax havens. Consequently, many of the rich are actually paying less than a 15% tax rate, and perhaps much less.

These are the same people who wine and cry at the thought of paying their fair share of taxes - which can never happen as long as they are hiding money off-shore. But they don't even want to pay their share of taxes on income that they actually report. All the while they begrudge the poor a few crumbs from the table, calling them all sorts of names. 

Maybe Berni Madoff was right - he's just an ordinary businessman.

Goldman Sachs' "Now You See It, Now You Don't", Recession

Despite being “too big to fail”, America’s “most important bank” Goldman Sachs may have done so this week, at least for a few minutes, when it possibly tipped off a new economic recession.

A graphic in the “Markets do not ‘Take it Easy’ to start the year” report posted online showed the US in a recession according to Goldman’s Current Activity Indicator.

“Although EM assets remain in the cross-hairs – and the outlook there remains tenuous in spots – growth concerns have impacted the market’s view of US and European growth as well, pushing our market-based measure of US growth risk to new post GFC lows,” the report read.

GFC = Global Financial Crash


Shortly after the financial watchdog website Zero Hedge tweeted their response, Goldman Sachs posted an altered graphic, moving the dark blue line from zero to closer to two.

CAI = Current Activity Indicator

So if Goldman Sachs changed the chart, there’s no recession, right?

Well, that’s where we get into a gray area.

Economist Paul Samuelson once said “the stock market has predicted nine out of the last five recessions”, according to the Washington Post, which asked “Is the stock market telling us we’re headed for a recession?” on Wednesday.

Andrew Levin, a Dartmouth professor and former adviser to Federal Reserve Chair Janet Yellen, pointed out in this document posted Monday that the “jobs boom doesn't look like it will last” and “industrial production is falling as fast as it does when there's historically been a recession”, according to the Washington Post.

Art Cashin, Director of Floor Operations at UBS, told CNBC Tuesday: "If corporations start to pull back and say 'I don't want to advance anything; I don't want to hire anybody,' we could slide into a recession."

Former Treasury Secretary Larry Summers, who’s been spinning through the revolving door between Washington and Wall Street since the Clinton administration, wrote in the Financial Times earlier this month that “markets understood the gravity of the 2008 crisis well before the Federal Reserve” and cited a report by The Economist which found the International Monetary Fund (IMF) failed to recognize any of the 220 recessions in major countries in the April before the recession started.

Last week, portfolio strategist Michael Pento wrote in his CNBC commentary ominously titled “A recession worse than 2008 is coming”: “The unscrupulous individuals that dominate financial institutions and governments seldom predict a down-tick on Wall Street, so don't expect them to warn of the impending global recession and market mayhem. But a recession has occurred in the US about every five years, on average, since the end of WWII; and it has been seven years since the last one - we are overdue.”

Goldman Sachs has long been criticized, but rarely punished, for its role in the global financial crash, aka GFC.

As portrayed in the new Oscar-nominated film “The Big Short,” the $40 billion company sold investments they knew to be "crap" and "junk," and took out insurance policies against them.

“Investment banks such as Goldman Sachs were not simply market-makers, they were self-interested promoters of risky and complicated financial schemes that helped trigger the crisis”, Michigan Democrat Carl Levin from the Senate Permanent Subcommittee on Investigations said.

Despite multiple revelations published by the Subcommittee, the Obama administration announced it was ending the investigation into Goldman Sachs for its manipulation of the sub-prime mortgage market in 2012.

Ironically, Republican presidential candidate and Texas Senator Ted Cruz loves nothing more than telling Republicans how Obama brought the country to its knees, failing to mention that his wife is a managing director for Goldman Sachs and regional head of the bank’s Houston office.

The government has been able to squeeze a few bob out of Goldman Sachs. Last week, it settled a joint lawsuit for $5 billion, specifically for Goldman Sachs’ role in selling mortgage-backed securities between 2005 and 2007.

It reached a $1.2 billion settlement with the Federal Housing Finance Agency in 2014 and in 2010, Goldman Sachs paid $550 million to the Securities Exchange Commission.

In all cases, the settlements allowed them to avoid prosecution or jail time.