Tuesday, May 18, 2010
Goldmine Sachs was a very handy company
Because they seem to have had a hand in just about every shady, dicey and downright criminal scheme that preceded the Great Bush Depression. Forbes has a look at one of their oil trading schemes, in the news again because the people who got screwed are going to court.
Dozens of small oil and gas producers across Oklahoma and the Midwest are suing Goldman Sachs, BP and ConocoPhillips, claiming the defendants conspired to defraud them out of proceeds for crude oil they delivered just before the collapse of Oklahoma-based pipeline giant Semgroup in the summer of 2008.We wish the oil producers well but it looks like it might well be another Jarndyce v. Jarndyce
With this lawsuit, filed in Oklahoma district court, we're one step closer to finding out if Goldman Sachs was responsible for helping to goose oil prices to record highs in the summer of 2008 by conspiring against Semgroup in massive crude oil trades. As first detailed by Forbes Magazine a year ago in this article, Semgroup collapsed into bankruptcy under $3 billion in short sale losses on oil futures trades. Goldman, through its J. Aron commodities division, was Semgroup's largest counterparty, and appears to have been responsible for giving Semgroup its final push off the cliff by unleashing a massive margin call on Semgroup as oil prices spiked. Billionaire John Catsimatidis, who has settled his own Semgroup-related suits in the past year, has asserted that Goldman's actions may have helped push up the price of oil to its record of $147 a barrel.
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