Dick Bove, one of the world's most respected banking analysts, describes the US government's case against Goldman Sachs as a farce. He also makes a shocking charge against one member of congress in particular.
What do Jimmy Cayne, Dick Fuld, and Joseph Cassano have in common? Not one of them has been charged with any involvement in the financial collapse 2007 – 2008.
Who has been charged? A mid-level Goldman Sachs trader who was 28 years old at the time. Fabrice Tourre, currently a grad student, is now on trial on SEC charges he intentionally misled investors about the mortgage securities. The government’s evidence includes this email to his girlfriend at the time which read:
“[The] Whole building is about to collapse anytime now… Only potential survivor, the Fabulous Fab… standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstrosities!!!”
Yes, he really did refer to himself in the third person. And, yes, he really did call himself “the Fabulous Fab”. Let’s not forget, he was 28 years-old at the time.
Oh, did we fail to mention this mid-level employee was the only person charged with the mortgage securities markets collapse, the one that plunged the planet into a financial crisis?
Dick Bove, vice president of equity research at Reafferty Capital Markets, is perhaps one of the world’s most respected banking analysts. In an interview with Talking Numbers, he says the government isn’t really serious in going after those responsible for the securitized mortgage debacle.
Bove also levels a stunning charge against one member of congress, saying this person is about to create a crisis “of major proportions”.
To see the rest of Bove’s shocking interview, watch the video above.
Also, catch tomorrow’s interview with Bove where he reveals two banking stocks he believes can double.