Buried deep in its quarterly report to the Securities and Exchange Commission, the too big to fail parasite Goldman Sachs revealed that it "has received inquiries from various governmental agencies". Seems they have some explaining to do about the billions in executive compensation that they were handing out while at the same time holding out the begging bowl to Uncle Sam. They also need to answer some questions about buying and selling trillions in credit derivatives.
The reason these instruments are called derivatives is that they are not tied to anything of real wealth or even paper wealth. The derivative is simply a bet; it resembles the credit default swap but that requires that you hold at least a securitized piece of a mortgage or other debt instrument making it similar to an insurance policy. With a derivative it’s like the town fire bug buying insurance on your house or the "ex" taking out life insurance on you.
Goldman Sachs owned a lot of these "policies" issued by AIG. The same AIG that got a huge government bailout and then the Bushies basically made the check out to Goldman. Goldman is now making 100 million plus per day trading securities. Seems they’ve figured out that if they run their computers "fast" they can get ahead of trades. Really what that means is they look at the huge volume of trades they handle and graph the price swings. Before they've even processed the trades for clients they do their own trading based on that "market trend" information. Sort of like the dealer keeping track of everybody’s hole card and then playing his own hand on the side. We’re all drawing to an inside straight.