FHFA sues Goldman Sachs

Until recently, it has been near impossible to see daylight between the Obama regime and the Banksters, but now, banksters are being thrown overboard.

The FHFA sues Goldman Sachs for common law fraud.

I conjecture this is in preparation for the 2012 elections

One complication is that they are suing Goldman Sachs for bad behavior committed by Goldman Sachs Mortgage Securities, a firm that has absolutely no assets.

Allegedly a manager of Goldman Sachs Mortgage Securities would put on his mortgage securities hat, and make up a bunch of outrageous lies about the mortgages, and then take off that hat and put on his hat as a manager of Goldman Sachs, and totally believe those outrageous lies that he had just told himself. “Hey”, he says, “I am the victim here.”

Wearing his Goldman Sachs hat, this poor innocent victim would buy the securities on behalf of Goldman Sachs, from the evil fraudster, Goldman Sachs Mortgage securities (from himself wearing his other hat), and then innocently and sincerely resell them to Goldman Sachs’ customers, such as the predecessors of the Federal Housing Finance Agency .

That Goldman Sachs Mortgage Securities has no money leads me to conjecture that though all the lies were told while wearing the Goldman Sachs Mortgage Securities hat, all the profits that accrued from these lies accrued while wearing the Goldman Sachs hat.

The Federal Housing Finance Agency was created to take up all the bad mortgages of Fannie, Freddy and the rest.

That a government sponsored enterprise purchased this $%@& implies that no one in the private sector would touch it, that it was not altogether secret that it was $%@& – that Goldman Sachs was telling the lies its customers asked it to tell them.