Goldman's(GS) New Role As The Foreclosure Mafia Of America
November 02, 2009 3:24 PM
Some people will always try to profit from other people's misfortunes. But what if it happens to be the largest investment bank in the world that's after your house? This is exactly what Goldman Sachs (NYSE: GS) has been doing with millions of American homes, under the guidance of Henry Paulson, former CEO and later U.S. Treasury secretary, and present CEO Lloyd Blankfein.
Hundreds of obscure subsidiaries of Goldman Sachs have been buying up subprime mortgages for the last few years, and then aggressively foreclosing on the properties of recession-struck Americans. This in itself is not fraud; even if it is poor business ethics to buy up bonds from shady lenders with the sole purpose of enforcing foreclosure.
What is worse is that Goldman is doing its best not to let homeowners know who had underwritten their loans. This disables homeowners from capitalizing on mortgage hardship provisions that would allow them to defer some payments, or on state laws enabling them to offset their debt against separate investment-related claims against Goldman.
As a result, hundreds of ordinary Americans are finding themselves in court with the mighty Goldman as the opponent bent on taking away their homes from them, by means that can only be described as unsavory.
