- Reggie Middleton: Goldman Creates a Facebook Hedge Fund for HNW Clients Historically Ripped Off By Such Vehicles, Spits In Face Of SEC
Bloomberg: In a rare move, Goldman is planning to create a “special purpose vehicle” to allow its high-net worth clients to invest in Facebook. While the S.E.C. requires companies with more than 499 investors to disclose their financial results to the public, Goldman’s proposed special purpose vehicle may be able get around such a rule because it would be managed by Goldman and considered just one investor, even though it could conceivably be pooling investments from thousands of clients.
It is unclear whether the S.E.C. will look favorably upon the arrangement.
MK: Facebook runs on* a public utility – paid for by the public. To create a multi-hundred billion dollar enterprise outside of the public markets – only to go public with an IPO when 99% of the easy reward has been realized by insiders and their friends – so that passive pension funds (the public) can assume 99% of the risk going forward – is clearly not in the public’s interest. Goldman Sachs, and the rest of Wall St., who have captured the SEC and various regulatory parts of Washington, are openly engaged in racketeering – with the creation of the Facebook Special Purpose Entity (SPE) offering. You may remember SPE’s from the Enron collapse. This is a glaring example of Wall St. simply rewriting laws or inventing new laws on the spot for the convenience of bypassing the public’s interest.
*pre anti net-neutrality legislation that will privatize the Internet
. . . leading to:
Will 2011 Become 1848?
Violence erupted throughout Europe in 1848, a time that was later dubbed the “year of revolution.” Though the motives and perpetrators varied from country to country and even from region to region, the frequently violent protests sought major changes in the status quo, to include political emancipation and economic reform.
MK: The Goldman Facebook SPE criminal fraud – keeping thousands of their clients quiet with this carrot who might otherwise be more politically active to support reform of Wall St. – hoping to get a piece of the facebook deal to remain silent – is effectively holding the political process hostage (combined with other such deals) and widening the wealth and income gap that is the root cause for the global trend toward social unrest. Had the insolvent Goldman Sachs and JP Morgan been allowed to fail in 2008 – an event that would have caused no unmanageable financial problems at all (contrary to the propagandized belief that the world would end) – much of the stranglehold Wall St. has over Washington would have been destroyed. Keeping these parasites alive – has only increased the size of tapeworm in America’s belly and made the job of reform fall upon the mob and the Silver vigilantes.