Goldman Sachs Tries to Shut Down Blogger

Mike Morgan is a registered investment adviser and a scrappy shoot-from-the-hip guy who doesn’t mince his words. Recently Morgan has come under fire from investment giant Goldman Sachs for his hard-hitting web site Facts about Goldman Sachs. According to the U.K. Telegraph:

Goldman Sachs is attempting to shut down a dissident blogger who is extremely critical of the investment bank, its board members and its practices. The bank has instructed Wall Street law firm Chadbourne & Parke to pursue blogger Mike Morgan, warning him in a recent cease-and-desist letter that he may face legal action if he does not close down his website.

According to Chadbourne & Parke’s letter, dated April 8, the bank is rattled because the site “violates several of Goldman Sachs’ intellectual property rights” and also “implies a relationship” with the bank itself.

Unsurprisingly for a man who has conjoined the bank’s name with the Number of the Beast — although he jokingly points out that 666 was also the S&P500’s bear-market bottom — Mr. Morgan is unlikely to go down without a fight. He claims he has followed all legal requirements to own and operate the website — and that the header of the site clearly states that the content has not been approved by the bank.

On a special section of his blog entitled “Goldman Sachs vs Mike Morgan” he predicts that the fight will probably end up in court.

“It’s just another example of how a bully like Goldman Sachs tries to throw their weight around,” he writes.

Morgan agreed to answer a few questions about Goldman Sachs, the TARP and the ongoing financial crisis.

Mike Whitney: Is Goldman Sachs trying to shut down your web site?

Mike Morgan: Yes

MW: Why?

Morgan: The legal answer to that would be . . . you need to ask them the question. I would think it is because we are exposing the truth . . . and the truth hurts.

: Have you libeled them or published privileged information?

Mike Morgan: No.

MW: Could you tell us something about yourself so that readers can trust your criticism of G-Sax?

Morgan: I am 53 years old and believe all of the answers for how we should live are in the Bible . . . . God gave David the choice of paying the consequences at the hands of David’s enemies or at the hand of God. David chose God’s consequences. Hank Paulson and the thousands of wicked men like him deserve the wrath of the millions of lives they have destroyed. We must go after the crooks and make them pay the consequences for their greed and the total disregard for anyone other than themselves. We need to start with Hank Paulson, who as CEO of Goldman Sachs, was more responsible than any 10 men combined, for the violent Depression we are about to enter.

MW: Why was G-Sax given $10 billion out of the TARP funds before federal regulators checked their books to see if they were solvent?

Morgan: Because King Henry (Henry Paulson) said so. As former CEO of Goldman Sachs, the last thing he wanted to see was a collapse of Goldman Sachs. And as Treasury Secretary with a big stick, he could do whatever he pleased . . . and he did.

MW: It was widely believed that most of the five biggest investment banks were leveraged 30-to-1. If that’s the case, then G-Sax probably would not have survived the downturn in the market without government assistance. Do you agree with this analysis?

Morgan: I agree.

MW: After Bear Stearns and Lehman Bros. defaulted, Merrill Lynch quickly sold out to Bank of America.

Morgan: Merrill was being run by John Thain, the former Goldman Sachs executive that helped Hank Paulson force out Jon Corzine who at the time was c-CEO with Paulson.

MW: That left Goldman Sachs and Morgan Stanley as the next likely candidates to be taken down by short sellers.

Morgan: Short sellers are not the issue. If short sellers drive down a stock below market value, then it becomes an opportunity for anyone that thinks the stock is a buy to bury the shorts.

MW: This is when SEC chief Christopher Cox — who had never intervened in the market prior to this — put emergency rules in place to stop the short selling of financial institutions. What was Cox’s action all about?

Morgan: The SEC is toothless and I still don’t know why Cox is not in jail. He not only looked the other way on the Madoff issue, but since he left, the SEC has gone after more than a dozen scams. Are you going to tell me everything was fine three months ago on Chrissy Cox’s watch? No, but I can tell you there is much more to this story….As for the SEC and short sellers, that was King Henry. Period. Full Stop.

MW: Was this mainly an attempt by Washington elites to pull G-Sax’s bacon out of the fire?

Morgan: Goldman Sachs and other companies affiliated with Goldman Sachs. Kinda like the old MCI Friends and Family Program.

MW: Recently it was revealed that G-Sax had been paid more than $12 billion for credit default swaps (CDS) it held with insurance giant AIG. Financial institutions that buy these CDS know that they are accepting additional risk because they are unregulated and outside government oversight. That said, Treasury’s payoff to G-Sax on these CDS was equivalent to paying off a gambler’s losses at the racetrack. Why was G-Sax compensated for their CDS? Why was it kept secret; and who authorized it?

Morgan: King Henry and his loyal lieutenant Neil Kashkari. Most people don’t realize, Neil Kashkari was King Henry’s lieutenant at Goldman Sachs. Neil is 35 years old with little experience other than being a very private executive assistant to King Henry when he was CEO of Goldman. Let’s ask ourselves . . . why exactly is Kashkari still on the job? Easy answer . . . because our President and Chris Dodd were both bought with Goldman Sachs’ money. These two men have received more money from Wall Street than any politician in the history of the United States. By the way, Obama was only around for two years, while Dodd was there for more than a decade. Obama received more money from Wall Street in two years than Dodd did in a decade.

MW: What is the nature of the relationship between G-Sax and the political establishment in Washington?

Morgan: If I answered that question I would need to increase the thickness of my Kevlar body suit.

MW: Why is Treasury a revolving door for investment bankers that are tied to Wall Street?

Morgan: Because the American public allows it. Benjamin Franklin said . . . Well done is better than well said. Too many Americans gripe and moan, but when it comes time to doing anything . . . they sit back on the couch with a bag of chips and the TV. We think it is cute to use the TV to amuse our toddlers. Do you think it is any different for 75 per cent of the American public?

MW: Are special interest groups dictating policy in the Obama White House?

Morgan: I can’t count that high. But if you just look at Wall Street and where the money came from, you will realize that Barack Hussein Obama is nothing more than a puppet of Wall Street.

MW: In an article that appeared in The Atlantic Monthly, a former chief economist of the IMF, Simon Johnson, had this to say:

“The crash has laid bare many unpleasant truths about the United States… recovery will fail unless we break the financial oligarchy that is blocking essential reform. And if we are to prevent a true depression we’re running out of time.”

Do you agree with Johnson that banks have a stranglehold on the political process and that “we are running out of time”? If so, how do we go about removing these people from office and replacing them with people who will operate in the public’s interest?

Morgan: First, I think guys like Simon Johnson are the guys that should be running the show. Simon along with William Black, Elizabeth Warren and Ron Paul. There are more, but if we had that trio at the helm, we’d be moving to a world of light, instead of a world of deep, violent darkness.

As to your question about how to remove these people from office, I believe it will be very violent . . . and very well deserved. We are two Biblical generations removed from the Great Depression of 1929. In 1969 we had race riots. We lost a true leader when we lost Martin Luther King, and the country paid the consequences. Here we are 40 years later . . . a Biblical generation, as we enter what I believe will be a period of violence beginning this summer. When you can’t feed your kids, and the folks at Goldman Sachs are sitting around the pool sipping cocktails and munching on snacks . . . that’s when those without go after those with.

The problem now is very simply . . . companies like Goldman Sachs created a financial system that was double stacked. One, they skimmed trillions of dollars out of our pension fund and other fiduciary money under their management. Two, like drug dealers they provided very creative financing to hundreds of millions of people around the world . . . which those folks can no longer afford to pay back. But the boys and girls and Goldman Sachs have already walked off with the money, leaving the people that bought the debt with little more than a piece of paper . . . and those that owe the debt, with the inability to ever pay it back.

MW: Will you fight Goldman in court?

Morgan: Yes. I’m prepared to fight them with several attorneys and law professors that are anxious to take this one on. I hope they do press the issue in court, but I kinda doubt it.

Mike Whitney lives in Washington state. He can be reached at: Read other articles by Mike.

16 comments on this article so far ...

Comments RSS feed

  1. Don Hawkins said on April 15th, 2009 at 11:45am #

    Oh what a tangled web we weave,
    When first we practise to deceive! Scott

    Salvador Dali:
    I believe that the moment is near when by a procedure of active paranoiac thought, it will be possible to systematize confusion and contribute to the total discrediting of the world of reality.

    Well golly gee after reading Mike and Greg Moses articles today I am confused. What is the truth? Scott and Dali I wonder any truth in those quotes. I don’t know that systematize confusion and contribute to the total discrediting of the world of reality is a little out there how could something like that ever happen in America. Anyway I will watch Glenn Beck on Fox and the Kudlow show on CNBC tonight and maybe come back to reality just a little and I have this headache today I think I left those glasses you know the one’s that show you the real World on a little to long today.

  2. Jeff said on April 15th, 2009 at 12:48pm #

    Wow, kevlar may not be enough. Watch those whom now say they will help. Mike Morgan is opening one of those “boxes” which will have dire consequences. No action by GS will allow more action by MG. Whom will flinch first? Someone is gonna get a real hurt around here on this one.

    Kudos though for having the balls to call out the dragon.

    Wonder if that dragon is afraid of snakes?

  3. mary said on April 15th, 2009 at 1:01pm #

    Mr Whitney – A few days ago I put a link about this bullying by Goldman Sachs on your earlier article here about Bernanke’s Rescue Plan. It is interesting to read this interview. I’m in the UK and gave a link to an American blogsite and you in Washington have given a link to a British newspaper! The story is now well-travelled and will be seen by many hopefully. Mr Morgan must be a tough nut and I wish him well.

  4. Suthiano said on April 15th, 2009 at 1:12pm #

    I wonder how Mr. Morgan is related to the Morgans of J.P Morgan, Morgan Stanley….?

    Interested to see how this develops.

  5. Michael Kenny said on April 15th, 2009 at 1:29pm #

    It’s a very common tactic in legal proceedings to take someone to court simply to exhaust their financial resources. Mr Morgan’s defiance notwithstanding, he does not have the financial means to stand up to GS. Even first instance proceedings will cost a fortune. and if GS loses, they will simply appeal. They will also find every pretext to lodge procedural motions, even if they think they have no chance of winning. They will settle out of court only if the closure of the website is on the table and, one way or the other, Mr Morgan will end up with no website and a heap of debts.

    Interesting, though, that a ultra-conservative paper like the Telegraph reports this. It’s a long way from Ambrose!

  6. Jeff said on April 15th, 2009 at 3:13pm #

    Beautiful, and from myself in North America, I DO read Ambrose Evans-Pritchard in the Daily Telegraph. Does not mean the Brits have a handle on things either, as reality shows.

    Problem here people is that most North Americans DO NOT HAVE A CLUE!

    Does it take someone in another “world” to SEE the problem!

    Britain and Canada. Both with the same experiment gone wrong.

  7. rosemarie jackowski said on April 15th, 2009 at 3:23pm #

    Michael Kenny is right. In a Court room it is usually the side with the most money that wins. Money buys ‘expert witnesses’. Money buys testimony. With enough money you can hire an expert to testify any way you want. It happens every day all over the USA. That’s why ‘expert witnesses’ are called ‘liars for hire’.

  8. Don Hawkins said on April 15th, 2009 at 3:47pm #

    Just watched Glenn Beck form Texas the Alamo and the tea party. He had a few guests and I guess this whole thing is about Tax’s. Well this little tea party was in part organized with the help of lobbyists you know corporate lobbyists who think paying tax’s is for little people, clever. Now Glenn towards the end of his show had on the man from Texas who shot two robbers a few months back. I thought this was about tax’s? Could you call that pitting one against another? I guess if we had a demonstration for climate change we could have a guest speaker who believes that the moment is near when by a procedure of active paranoiac thought, it will be possible to systematize confusion and contribute to the total discrediting of the world of reality. Glenn Beck thinks climate change is a non reality and his guests who help him with that are not paid by the fossil fuel people and the moon is made of green cheese. I still have a headache and almost afraid to watch the Kudlow show tonight.

  9. Russell Olausen said on April 15th, 2009 at 3:59pm #

    Summers of discontent are rarely courtroom dramas. I hope the powers that be still know the value of circuses and bread.Pirates on the edge of the flat world, of the masses, are a useful gambit. I’ve already heard rumors though the walls of my igloo.

  10. Russell Olausen said on April 15th, 2009 at 4:09pm #

    Key board must have froze, I meant ” through the walls of my igloo” Got to go stamp in the snow NO TO HYDROCARBONS .

  11. Don Hawkins said on April 15th, 2009 at 5:13pm #

    The next two months in the Senate the United States cap and trade comes up. I am very sure we will see a procedure of active paranoiac thought and confusion and a discrediting of the world of reality. Oh yes very sure of that. If they can pass a bill it will be watered down and cap and trade is a band-aid as far as this little climate breakdown is concerned. This summer and next we should get a very good look at what climate change means to all of us. El Nino will come back the Sun will get active again the ice in the North again record low’s more ice in Antarctica into the ocean. Drought in Northern China and on and on and on. Cap and trade is the beginning of the end for the human race much harder choices than that need to be made. Tax carbon and return the money back to the people as a start. We need to leave as much of the fossil fuels we can right where they are in the ground. A new way of thinking is needed on how we look at each other and this planet. The first part is not as hard as the second that’s a nobrainer. So far this is not happening due to active paranoiac thought and confusion and a discrediting of the world of reality and ratings. We are out of time probably not a second chance. I see Exxon has commercials that tell us they have enough oil and gas for 50 years oh boy are those people confused. The coal commercials are that’s where we get 50% of our energy for our way of life again confusion and a discrediting of the world of reality. Oh forget reality we don’t need it anymore, what. Forget tea we need something stronger coffee black and make it strong and hope like hell it works. I don’t think we will get a second chance.

  12. Don Hawkins said on April 16th, 2009 at 3:52am #

    Hay what about those tea party’s? I found Dick Armey last night when he put on the ten gallon hat and talked liked a third grader different. Oh and the Governor of Texas saying nothing is off the table. I knew kicking and crying was going to happen but this is getting ridiculous. Anyway back to reality.

    Tony Kevin writes:
    15 April, 2009

    On Tuesday 14 April Professor Will Steffen and other Australian National University experts gave an informal public briefing on key messages from the “Climate Change: Global Risks, Challenges and Decisions” Congress held in Copenhagen in March. The Congress was a big event: 2500 climate scientists and social scientists attended from 80 countries, and there were 1600 presentations. It set out to update findings of the 2007 Intergovernmental Panel on Climate Change 4, in preparation for the intergovernmental UN climate meeting in Copenhagen in December. A 30-page agreed report of Congress findings will be disseminated in June.
    Australian scientists played a large role, as the fifth-largest national representation after the US, Germany, Britain and host Denmark. ANU was one of 10 leading world universities co-sponsoring the Congress. Steffen’s team has already reported back to senior Australian Ministers and deparmental officials. The news is not good. Worst-case IPCC 4 scenarios are already being exceeded and climate change indicators are accelerating.
    The world has moved into uncharted climate territory, in terms of experience of human sustainability. A two degrees centigrade average global temperature rise above the 2000 level is seen to be at the upper limit of safety — this rise will itself cause serious human disruption in poor countries. Weak CO2 emission targets for 2020 increase the risk of irretrievable climate change tipping points being passed before 2020: accelerating polar ice melt and loss of the ocean’s efficiency as a carbon sink are two such threatened tipping points. So urgent action is needed now to decarbonise societies.

    Worst-case IPCC 4 scenarios are already being exceeded and climate change indicators are accelerating.
    Worst-case IPCC 4 scenarios are already being exceeded and climate change indicators are accelerating.

    Somehow I don’t think acting like third grades is going to help this little problem.

    Salvador Dali:
    I believe that the moment is near when by a procedure of active paranoiac thought, it will be possible to systematize confusion and contribute to the total discrediting of the world of reality.

    What the heck was Dali talking about with this thought? Well watch the United States Senate the next few months and pay no attention to the man behind the curtain should give us a clue. Procedure of active paranoiac thought, it will be possible to systematize confusion and contribute to the total discrediting of the world of reality interesting concept. What do you think any winners so far?

  13. Brian Koontz said on April 17th, 2009 at 6:01am #

    It was just another bubble. Subprime Bubble, Dot Com bubble, Real Estate bubble, Financial derivatives bubble. Everyone always claims not to see the bubble, but of course that’s nonsense – high capital always understands what’s going on.

    As long as bailouts are assured, we’ll keep seeing bubbles that “shock” everyone when they burst. We might as well try to figure out what the next bubble is going to be. Then we can take bets on when it will burst.

    Jimmy Cayne, chairman of Bear Stearns, continued to play bridge while his net worth dropped by one billion dollars. Perhaps, like George W. Bush who maintained his conversation with 8-year-olds after becoming aware of the destruction of the Twin Towers, he always knew that his day would come. A bubble’s life is always precarious. There’s no reason for it to ruin a good game of bridge.

    Someone building a house of cards knows the fall is inevitable. It’s just a question of when.

    Poor Cayne didn’t get in on the real scam – which is the transfer of real (taxpayer) wealth to bailout out the illusory wealth of the financial bubble.

    It’s the greatest scheme ever – let’s say you have a money-making machine in your basement, which used to be illegal but after deregulation is no problem at all. You’re printing money left and right. But then GODDAMN, it must have been the ink or something but the money starts to come apart, frays, and then disintegrates.

    But because of this machine, you’re such a financial juggernaut that you’re deemed “too big to fail” and the “value” of your fake money is compensated in REAL money. Taxpayers bail you out with real dollars which don’t fray and disintegrate.

    Cayne didn’t lose one billion dollars, really. His illusory money just evaporated and unlike favored others, he didn’t get compensated with real money.

    Oh these Wizards of High Financial Capital! Allahkhazam, your money is gone!

    Bubbles are *supposed* to burst. The bursting of the bubble is the key point in the grand heist, leading to the bailout endgame.

  14. Don Hawkins said on April 17th, 2009 at 6:59am #

    And that is why climate breakdown drives them mad to fix that little bubble takes a new way of thinking and soon.

  15. william tigersoftcom said on April 18th, 2009 at 4:40am #

    Wall Street – Goldman Sachs – Washington

    The CEOs who boss the huge Wall Street firms invariably took huge risks with other people’s money in order to get obscenely high bonuses after 2000. It was their lobbying for de-regulation and then their over-leveraging that caused the bubble and crash. Investment bankers like Goldman Sachs knew that they were committing fraud when they sold packages of “liars’ loans” as triple “AAA” investments. Not only did Goldman sell more of these bundles of “toxic assets” than anyone else, they also bought more credit default swaps from AIG as insurance against the mortgages and the banks who held them failing. Such large purchases of insurance from AIG prove that Goldman knew their bundled mortgages were not grade “AAA”. That should prove in a court of law that they were guilty of fraud and misrepresentation. Why is their no criminal prosecution and no trial? …

    Despite their responsibilities as leaders of finance and government, bank CEOs like Paulson at Goldman (for example), US Treasury officials from Goldman, Geithner at the NY Fed and key Congressmen, all let the boom get bigger and bigger, pushing home prices higher and higher…

    The eventual collapse was easily foreseen by cynical Wall Street insiders, like ex-GS CEO Robert Rubin who sold out at the top. Rubin knew the risks. He and Larry Summers (who got $7.8 Million from Wall Street and Goldman Sachs in 2008) had long promoted the de-regulation of banks and the non-regulation of derivatives like those that bankrupted AIG within the Clinton Administration. At CitiGroup, it was Rubin after 2002, more than anyone else, who had urged that big bank to maximize their use of leverage all the way up, making more and more ridiculous loans to increase short-term profits to get higher and higher bonuses. …

    It is significant that Goldman Sachs avoided the worst of the 2008-2009 Crash. In September 2007, Goldman issued a report predicting a 35% to 40% drop in housing prices. Most of their profits after 2007 came from buying credit default swaps and selling stocks short. To that end, because they understood the dynamics of the boom they had helped create, they set up a huge $10 Billion short selling Hedge Fund in December 2007. This was done at the perfect time. Goldman thus sold short
    all the way down.

    But that’s only a small part of the story. Goldman Sachs got a TARP- I taxpayer bailout of $20 billion from their ex-CEO, Henry Paulson as Treasury Secretary. And never ones to lose an opportunity to steal from the taxpayer, Goldman got $13 billion more when the American taxpayer bailed out AIG…

    Investment bankers create nothing! But they are paid everything! Goldman played the bubble perfectly. Why did they succeed, where others on Wall Street failed? They controlled Washington…

    Who Are These People?

    With an arrogance found only among the super rich, these Goldman Sachs executives have claimed that they are the “best and the brightest”. They work hard and have earned every penny of their fabulous pay. To keep the most talented loyal, Wall Street firms like Goldman always say that they must pay very high salaries and bonuses, very often in the tens of millions of dollars.

    What a crock! They pay them excessively to buy loyalty, just as a crime boss would. They wish to prevent dissent, to keep their frauds and deceptions private, to attract the greediest who lack compunction and to perpetuate an aristocratic cult. The truth is very different. Goldman Sachs executives are not so smart. They cultivate contacts and insider knowledge. Most have been shown to be cut-throat fraudsters…

  16. Denise Hubbard said on June 26th, 2009 at 1:43pm #

    GO MATT!!!!!!! I just read the SEC requested to see a movie about this (see article link) called Stock Shock. Finally!!…taking some proactive action!