The Securities and Exchange Commission is charging Goldman Sachs for fraudulent practices in US courts. A letter published in the Straits Times asked the Monetary Authority of Singapore to take similar action against financial institutions for similar practices in Singapore. MAS has replied that the jurisdiction is different. Another person commented in my blog that fraud is fraud, regardless of jurisdiction.
Someone commented in my blog that such cases are complex and difficult to prove in court. I wish to take issue on this point. Fraudulent practices have to be investigated, if there are reasons to suspect that it has occurred and many hundreds of people are involved as victims. Only the authority (i.e. state or government) has the resources and power to carry out this investigation. The victims do not have the resources and power to take civil action.
After gathering the evidence, the authority has to bring the case in court and convince the judge that there was fraudlent intent. This may be difficult, but one should not shirk this responsibility. In many instances, the charged party may be willing to negotiate a settlement without admission of guilt and to compensate the victims or the state.
I applaud the attorney general of New York State for brining up the case against the financial institutions on the auction rate securities and on financial reinsurance. The financial institutions decided to settle the case out of court and agreed to make suitable compensations. It was not easy for the attorney general to take this task, but he did not find excuses to avoid the respnsibility.
I hope that our authority in Singapore will take the bold step to protect the reputation of Singapore as a safe place for people to invest their money here.
Tan Kin Lian
What a Criminal Inquiry Portends for Goldman
ReplyDeletehttp://dealbook.blogs.nytimes.com/2010/05/03/what-a-criminal-inquiry-portends-for-goldman/
I have written and talked to MAS and FI, bring the case to FIDREC and now, joining others taking the FI to court. I do not know what else we can do to prompt MAS to start probing. Investors are being stone walled.
ReplyDeleteThanks to the great man, brilliant investment guru, the sage of Ohama, I have renewed my faith in capitalism.
ReplyDeleteLike what Mr. Buffett mentioned, if the banks, who also employs smart people, did not do their due diligence, how can they put all the blame on GS?
Mr. Buffett is the most respected people in the world of investment and he has a very good point. He runs one of the world's most successful insurance and investment company, Berkshire Hatheway. You only have yourself to blame if you did not do you own homework.
I am a long time follower of Mr. Buffett and I stand behind him in his support of Goldman Sachs (I have no vested interest - I am not earning the 10% yield from GS stocks). GS did no wrong; SEC should just drop the charges and move on.
You cannot bring MAS to investigate. No one can except the Ms. Even though they may be paid by taxpayers, this is how our system work. You don't do things without Ms permission or risk scolding from him. See how MPs conduct themselves in parliament? Day in day out very boring subjects. Think abit out of the box, kana scolding.
ReplyDeleteVoting in Sgp is a waste of time. Same goes to elect a President. First time very fun. Subsequently then realized throwing money into the drain.
We Pay And Pay but what we get in return? MAS over paid and under perform over Minibonds saga. American Banksters like to invest here while local investors got a earful from Ms even though it is the FIs who cheated them. This is especially so when DBS Bank is own by Govt and MAS cannot investigate them without Govt approval.
The system sucks. And there is nothing we can do about it.
To: May 04, 2010 6:56 PM
ReplyDeleteThere is one thing you can and should do, and that is to vote for opposition, and I mean ANY opposition.
This is the one and only way to build up check and balance in our fake democratic system.
Mr Tan:
ReplyDeleteU wrote "In many instances, the charged party may be willing to negotiate a settlement without admission of guilt and to compensate the victims or the state."
This latest story supports yr view:
"Goldman plans settlement talks with SEC"
http://www.reuters.com/article/idUSN0410375520100504?type=marketsNews
Charlie Gasparino: Goldman To Probably Settle For At Least $1 Billion, Maybe $5 Billion
ReplyDeletehttp://dealbreaker.com/2010/05/charlie-gasparino-goldman-to-probably-settle-for-at-least-1-billion-maybe-5-billion/