WallStreetManna, a seasoned observer of the ongoing crime scene that is Wall Street, points out that pretending that Gupta was the only one at Goldman in a chummy relationship with Galleon is eye-wash. Galleon, like Madoff, was turning in returns too good to be true. Everyone had to have known.

Unlike Madoff, of course, Rajaratnam didn’t bilk his investors. They got all their money back, plus profits.

But the point still holds.

Galleon was just one of a number of  “under the table” relationships Goldman cultivated with hedge-funds and other favored operators, like…

…well, like the mysterious “self-made billionaire” Jeffrey Picower,  who died of a heart-attack just as the Madoff ponzi unraveled and just as he went from being a self-proclaimed victim to a suspected accomplice, if not master-mind, whose billions sat in an account managed by none other than Goldman Sachs.

“Now I compared Galleon’s returns to Madoff’s. What did the beneficiary of Madoff, to the tune of $7 billion, Jeffry Picower do, the minute he “found out” Madoff was a fraud?

He closed the Picower Foundation. Even though he could have easily kept it open. After all, didn’t he make $7 billion, that we found out later? He must have wanted it closed!

What did Raj do immediately after he was accused by prosecutors? Isn’t he closing the fund?

Why did Goldman think Madoff’s returns were inconceivable, but Galleon’s weren’t?

And why did Raj pay Goldman so much damn money?

Ask Raj. Or ask Anil.

But don’t ask Goldman. Or the SEC. They just hired a former Goldman cronie [sic] as their new COO before Raj got busted. [Lila: That would be Adam Storch]

You’ll just get “no comment.”
———

Now how about the Buffett tip?
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Goldman directors even tipped the Buffett deal.

Anyone remember how Goldman reversed the steep sell-off the day before Buffett invested in Goldman? And how the financials reversed that day from their lows? Did anyone from Justice check out how Goldman traded in the SKF that day? How many shorts that they had laid out in that number?

And did Goldman, ramp and reverse the financials,  the day after the Government announced the shortseller rules, because they knew of Buffett’s investment?

After all, didn’t Byron Trott, Buffett’s broker at Goldman, who put the deal of Buffett’s investment into Goldman together–didn’t he at the end of March 2009, start his own firm?
And didn’t Goldman, change the rules on him alone, allowing Mr. Trott to sell his shares in Goldman, unlike the other executives who were handcuffed to the hip with their Goldman stock, because of Buffett’s investment?

The Sunday before Buffett’s announced investment, the Fed allowed Goldman to become a bank holding company. Then they blocked all short selling of the financials. Then Morgan Stanley announced their deal with the Japanese.

Buffett bought out Constellation Energy, to give confidence in the deal making arena, because that deal was on the ropes, and in the financials, names like State Street went from 30 to 64, Morgan Stanley, went from 12 to 34, and Goldman went from 86 to 144–all in ONE day–from 12:30 in the afternoon, to 8:00 am in the next day’s pre-market!

Is someone going to say that the stocks ramped all because you couldn’t lay out any more shorts, or those who were short, were instead tipped?

Here was the action in Goldman the day that Buffett’s tip to the rest of Wall Street was announced.

Why did you have, instead, the move in the financials, the days before?

How is it, that when a company on Wall Street, reports good numbers, and the stock sells off; that everyonne already knew that news.

Was the street so incestuous, that everyone else knew the news that Gupta had tipped?

How many people did Raj also tip? Who were also dying on the vine in September of 08?

And even with this massive, wonderful tip, Galleon was down 7.23% in September of 2008, and he was down another 5.23% in October. Even though he was getting tipped!

Is it any wonder why he was having crumpets and tea with Gupta, in his private office!

Away from the wires!

So now are we to believe, that it was just Raj, alone, who ramped the financials, or was a better explanation, that Goldman Sachs, decided to deploy their capital, into a massive short squeeze, in the shorted names, because they knew that the PPT, would be behind them, in their effort to prop up the markets, on the backs of the shortsellers, because Trott had already told Goldman that Buffett was in, and the Fed, had already told Goldman, that on Sunday night, they would be a bank holding company, and that, they would then have access to Ben’s billions?

And Ben, and Timmy, and Lloyd, will all suffer memory problems, because the sole rat, in this whole mess, was Raj, just like Goldman’s sole rat, in the Abacus, was a 27 year old kid called Fab!”