Sen. Levin Calls Goldman Sachs Allegations 'Deeply Troubling' (ABC) Senator Demands to Know Why Goldman Sachs Pushed 'Sh**ty Deal' on Clients
In a testy exchange at today's Senate grilling of Goldman Sachs executives, Sen. Carl Levin, D-Mich., confronted a former Goldman trader with an e-mail in which another former Goldman executive described a mortgage-backed deal as "sh**ty."
The transaction in question was Timberwolf Ltd., a $1 billion collateralized debt obligation holding pieces of other CDOs. In an e-mail to Daniel Sparks, then head of Goldman's mortgage desk, Thomas Montag, Goldman's former head of sales and trading, called a set of mortgage-linked investments sold by the firm as "one shi**y deal," according to an e-mail that Sen. Levin quoted. Within five months, Timberwolf lost 80 percent of its value.
"Do you think it was a sh**ty deal?" Levin asked Sparks, one of seven Goldman executives appearing today. Sparks said he did not recall the e-mail, and did not directly answer the question.
"If you can't give a clear answer to that one Mr. Sparks then we're not going to get any clear answers from you today," Levin said.
In his opening remarks, Levin called the allegations against the Wall Street firm "deeply troubling."
"The evidence shows that Goldman repeatedly put its own interests and profits ahead of the interests of its clients and our communities," Levin said. "Its misuse of exotic and complex financial structures helped spread toxic mortgages throughout the financial system. And when the system finally collapsed under the weight of those toxic mortgages, Goldman profited from the collapse."
Watch CBS News Videos Online
It sure is amazing how the GOP thinks this idiot strategy will work FOR them in the November elections when poll after poll keeps reminding them the public and former Republicans have pulled away from them in favor of the Democrats. Now if the Democrats can just not step on their tongues, keep their spines strong and straight, get serious about all kinds of reform - then they might actually get to stay in office and run the country for a few decades before they get lazy again, forget to take care of the middle class and get thrown out in favor of lobbyist puppets Republicans. Yeah, that's choice in American politics...
Stance Against Financial Bill Risky For GOP (NPR)
Republican senators are offering a united front to block a Democratic bill that would revamp the rules for Wall Street. But the GOP's hard stand against the bill is not without political peril, party strategists warn -- and it has the potential to hurt the party with voters this fall.
"I think most people believe that Wall Street got away with something," says Reed Galen, a Republican consultant who was deputy campaign manager for Sen. John McCain's presidential bid.
Republicans blocked the financial overhaul bill from moving to the Senate floor for debate. The vote was 57-41, three short of the 60 needed for Democrats to advance their measure. A third test vote is expected on Wednesday.
On Monday night, all 41 Senate Republicans -- plus one Democrat -- blocked the bill . But no matter what they think about the details of the bill, Republicans have to be careful of appearing to be the party of the "wealthy, detached elite," Galen says.
The GOP also should be wary of playing into the hands of Democrats, who are privately pleased that they have been handed much-needed fodder -- and a simple message -- for the fall midterm elections. Republicans expect to make significant
gains on Capitol Hill...
Yes, Mr. Vice President, this IS a "Big F--king Deal!" :)
Biden 'Absolutely Confident' On Economic Recovery (NPR)
Vice President Joe Biden is bullish on the Obama administration's efforts to mend the U.S. economy after the worst economic crisis since the Great Depression.
"I'm absolutely confident that the policies that we put in place are sending the economy and the American public in the right direction," Biden told NPR's Robert Siegel on Tuesday.
Last week, Biden told a political fundraiser in Pittsburgh that the economy would create 100,000 to 200,000 jobs a month, adding that there will be some months in which as many as 250,000 to 500,000 jobs would be created. The comments prompted White House spokesman Robert Gibbs to quip: "He's an optimistic man, and that's why we like him."
Biden acknowledged Tuesday that those predictions were "a long way [from erasing] an 8-million-job deficit."
"What has to happen is there has to be continued forward progress," Biden said. "There's going to be ebbs and flows ... but it has to constantly be moving in the direction of job creation..."
And yet another huge Scumbag Alert...
AstraZeneca Paying $520 Million To Settle Seroquel Charges (NPR)
AstraZeneca became the latest drug giant to pay up for marketing an anti-psychotic medicine for uses the Food and Drug Administration had not approved.
Federal officials announced a $520 million settlement of civil charges stemming from the drug maker's promotion of Seroquel, an antipsychotic with sales of $4.9 billion worldwide last year.
AstraZeneca pushed doctors to write Seroquel prescriptions for a host of unapproved uses, including anger management, post-traumatic stress disorder and sleeplessness, the settlement alleges. The drug was improperly promoted for use in children and also the elderly.
In addition, the government claims the company curried doctors' favor with money. "AstraZeneca paid kickback to doctors as part of an illegal scheme to market the drug for unapproved uses," Health And Human Services Secretary Kathleen Sebelius said at a news conference about the settlement.
I like the way Wall Street says this is no big deal because they were expecting it. Yeah, I guess not when they are making billions every quarter off the derivatives market to this day going unregulated! No wonder they are not sweating the small stuff.
Stocks Plunge on Europe's Deepening Debt Woes (CBS/AP) Dow Jones Plummets 213 Points as Debt Problems in Greece and Portugal Threaten Global Economy
Investors are once again worried that debt problems in Greece and Portugal could threaten the global economic recovery.
Stocks plunged in the U.S. and Europe Tuesday after Standard & Poor's downgraded the debt of the two European countries. The Dow Jones industrial average fell 213 points, its worst loss in almost three months. All the major market indexes were down about 2 percent.
The ratings downgrades also sent the dollar up more than 1.1 percent against the euro, hitting its highest level in about a year. At the same time, gold and Treasury prices also rose as investors sought safer investments. The three often do not trade in the same direction.
"It was a knee-jerk reaction," said Brian Peardon, a wealth adviser at Harrison Financial Group in Citrus Heights, Calif. Peardon said the small size of Greece and Portugal's economies mean their debt struggles are not yet a major problem. But if they were to default on their debt, other countries that hold their bonds would also suffer...
Hmmm... if you want to learn how to spot a liar just hike on over to Liars News aka Fox News. Just watch their lips move and you will automatically know on the spot that they are lying about everything - even what they had for breakfast. Yes, it's that bad over there. Definitely Liars News has only two kinds of audience draw: weak minds that believe lies easily and those who enjoy mocking them. Yep, that about sums it up!
Dr. Phil: How to Sniff Out a Liar in Your Midst (CBS) Famed Talk Show Host Tells of Common Indicators that Someone is Lying to You
Can you spot a cheater?
Dr. Phil can.
Famed talk show host Dr. Phil McGraw, better known simply as Dr. Phil, appeared on "The Early Show" Tuesday to tell you how you know someone's lying...
Watch CBS News Videos Online
And for the laughing bizarre story of the day...
Police Say Man Wrapped In Toilet Paper Robs Store (CBS) Nebraska Police Say Man Who Concealed His Face With Toilet Paper Robbed A Convenience Store
LINCOLN, Neb. (AP) - A man who concealed his face by wrapping his head with toilet paper robbed a Lincoln convenience store. Police said the man was armed with a knife when he robbed the store around 10:30 on Saturday night. He escaped on foot with an undisclosed amount of money from the safe.
Capt. David Beggs said Sunday that no one was injured.
And that's all she wrote...
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