Thursday, May 14, 2009

Make an offer he can't refuse

"I'd hoped that we could come here and reason together. And as a reasonable man I'm willing to do whatever is necessary to find a peaceful solution to this problem." Vito Corleone

This from Bloomberg today:

"The big news from Goldman and Massachusetts Attorney General Martha Coakley this week was a $60 million settlement, under which the investment bank resolved her office’s investigation into its packaging of mortgage securities backed by subprime home loans. Per the usual custom in such accords, Goldman didn’t admit any wrongdoing.

The odd part is that Coakley’s office didn’t accuse Goldman of any wrongdoing, either. It filed no lawsuit. And it made no allegations that Goldman had violated any statutes or rules."

It seems to me there are two possibilities here. Either the state of Massachusetts is shaking down Goldman in a protection money racket. Or the state of Massachusetts is taking hush money. The third, Goldman Sachs is just charitable didn't pass the sniff test.

John Barnyak