While I admire the tenacity of fellow Kossack Laser Haas, I find his diaries hard to understand, especially for someone new to his story. So I'm making the attempt here to summarize his case against Goldman Sachs, which seems pretty tight if there is a will to prosecute.
Understandably, that's a very big if, since Goldman Sachs and other big banks "run the place".
Goldman Sachs brought eToys public.
http://articles.latimes.com/...
Internet toy seller EToys Inc., which has filed for bankruptcy, said Thursday that it filed a lawsuit against Wall Street firm Goldman Sachs Group Inc. for allegedly mishandling its 1999 initial public offering.
The suit--filed in New York Supreme Court--alleges that Goldman, one of the leading underwriters of IPOs, intentionally underpriced EToys' offering and received kickbacks from its customers, who profited when the shares soared.
It charges Goldman (ticker symbol: GS) with fraud and breach of contract and fiduciary duty. A Goldman spokeswoman declined to comment on the suit.
There is very obvious criminal activity. Not so much on this lawsuit, but that when Goldman Sachs trashed the company to hide their initial crime and eToys went bankrupt, eToys hired some bankruptcy lawyers, Morris Nichols Arsht & Tunnel (MNAT). Those bankruptcy lawyers happened to secretly be affiliated with Goldman Sachs. It is against the law for a bankruptcy law firm to work on a bankruptcy case when they are affiliated with the firm associated with the IPO, because there could be a conflict of interest.
Just like with Nixon, it wasn't so much the initial crime that got him in trouble, it was the coverup. This coverup is a very clear, documented crime, and it could bring down Goldman Sachs.
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