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Posted at 6:30 AM ET, 12/23/2010

Economic agenda: Thursday, Dec. 23, 2010

By Mike Shepard

At 8:30 -- The Commerce Department releases data on orders for durable goods in November.

At 8:30 a.m. -- The Commerce Department releases data on personal income and personal spending for November.

At 8:30 a.m. -- The Labor Department releases data on weekly claims for unemployment benefits.

At 9:55 a.m. -- The University of Michigan releases its index of consumer confidence.

At 10 a.m. -- The Commerce Department releases data on sales of new homes.

By Mike Shepard  | December 23, 2010; 6:30 AM ET
Categories:  *Economic agenda  | Tags:  consumer confidence, durable goods, new homes, weekly claims  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Economic agenda: Wednesday, Dec. 22, 2010
Next: Economic agenda: Tuesday, Dec. 28, 2010

Comments

How can the economy recover when stockholders' rights are not protected, either by the president or by the SEC?
I won't be buying, I can assure you.

In an example of my concerns about SEC and other government so-called protective agencies...

"Quote:
The Securities and Exchange Commission's settlement of a lawsuit against Goldman Sachs (NYSE: GS) over a certain subprime mortgage product sold to investors misses a key issue. That is, concerning the company's duty to provide timely and transparent disclosures to its own shareholders about government subpoenas, investigations, and pending enforcement actions against the firm. In this particular case, Goldman did not make timely disclosures about the regulator's investigation and pending lawsuit against the firm, right under the SEC investigator's noses.

On Friday, April 16, 2010, the SEC filed a surprise lawsuit against Goldman Sachs and Executive Director Fabrice Tourre alleging securities fraud in connected with the company's marketing of the ABACUS CDO to investors. That day, Goldman Sachs shares plummeted from $183.31 per share to $160.30 per share or about 13%, wiping out about $12 billion of shareholder wealth.

In agreeing to the SEC's largest-ever penalty paid by a Wall Street firm, Goldman also acknowledged that its marketing materials for the subprime product contained incomplete information.

(...THE MOST IMPORTANT PARAGRAPH...AND THE MOST IMPORTANT QUESTION: WHY IS THIS NEXT PART OVERLOOKED, OR WAS IT IGNORED BY THE SEC, AND WHY IS THE DRIVE-BY MEDIA IGNORING IT?! NOTHING IN THE ECONOMY WILL CHANGE FOR THE BETTER UNLESS THE PEOPLE OF THE U.S. CAN DEPEND ON THEIR REGULATORS, AND IF THE TOP ONES EITHER DON'T REALIZE WHAT HAS TO BE DONE, OR DON'T INTEND TO DO IT, WE'RE FINISHED AS A NATION. PERHAPS THAT'S THE POINT?)

By ignoring Goldman's failure to inform shareholders in a timely manner about the SEC's investigation of the company and then pending enforcement action, the SEC is sending a message that surprising investors about investigations and enforcement actions is fair game. Moreover, a resolution requiring self-assessment is meaningless, as anyone not sleeping soundly through the last decade should know.

http://seekingalpha.com/article/214999-goldman-settlement-the-sec-s-real-failure#comment_update_link


Posted by: Anonymous | December 23, 2010 4:14 PM | Report abuse

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