Yesterday, after the close, there were two important news events. One was bullish and the other bearish.
The Bullish news: The SEC, in a decision that is beyond my comprehension, accepted a bribe from allowed Goldman Sachs to settle the case pending against it for the amazingly low price of $550 million. Does anyone at the SEC understand how many billions of dollars – cash that once belonged to the American taxpayer – was handed to Goldman? Is there no sense of justice at the SEC? Is there no sense of decency?
Considering only the settlement with AIG – in which they were paid 100 cents on the dollar for paper worth less than half that amount – makes the SEC settlement look trivial in comparison. I guess that's because it is trivial.
This is an amazing coup for the company, and the stock has moved significantly higher in after hours trading,
Had they been convicted, there is no telling what would have happened. Surely their chief guy, Lloyd Blankfein would have lost his job. Now, he is absolved. Goldman Sachs, the poster company of bad behavior suffers no punishment. No punishment. For mere pocket change that get to go on as before. If convicted, they could have been forced out of business.
And now there is no admission of wrongdoing. It's a mockery of fair play. It's true, the banks own the government. I thought they only owned Congress. How naive of me. They own the SEC and probably the White House as well.
This result from a Democratic administration is incomprehensible. Even under George W Bush the punishment would have been larger. Perhaps a round number – one billion dollars – just to make the public believe it was a severe punishment. This time the SEC didn't even pretend to seek justice. These people are idiots.
I've said it before and I'll say it again. The SEC has too many ignorant lawyers. It needs people who trade for a living and perhaps some intelligent civilians. This settlement is a joke.
The bearish news is that Google's earning announcement disappointed Wall Street. The stock was down sharply in after hours trading.
It will be interesting to see if either of these stocks leads the market in a significant move today, expiration Friday.