Warm Southern Breeze

"… there is no such thing as nothing."

Posts Tagged ‘Lernout Hauspie’

“TOO BIG TO FAIL” is just BIG enough to rob you blind: How Goldman Sachs robbed an American entrepreneur of $580 Million, and screwed over the American economy in the process

Posted by Warm Southern Breeze on Tuesday, July 17, 2012

Honestly (and some use that word lightly), is there any reason why Banks should NOT be heavily regulated?

Is there any reason why Stock Brokerage Houses should not be similarly heavily regulated?

Is there any legitimate reason why Insurance Companies should not be regulated?

Finally, is there any compelling reason why those BIG THREE financial businesses should be allowed to be in each other’s business?

Why do people NOT see these horrible things?

Where is the disconnect that they’re not able to put 1 + 1 together and come up with 2?

This is FRAUD – FRAUD – FRAUD!!!

And we’re just gonna’ let it slide by?

Please!

July 14, 2012

Goldman Sachs and the $580 Million Black Hole

By LOREN FELDMAN

THE business deal from hell began to crumble even before the Champagne corks were popped.

The deal, the $580 million sale of a highflying technology company, Dragon Systems, had just been approved by its board and congratulations were being exchanged. But even then, at that moment of celebration, there was a sense that something was amiss.

The chief executive of Dragon had received a congratulatory bottle from the investment bankers representing the acquiring company, a Belgian competitor called Lernout & Hauspie. But he hadn’t heard from Dragon’s own bankers at Goldman Sachs.

Dragon 15-GOLDMAN-articleLarge

Janet and Jim Baker at home. They are fighting Goldman Sachs over its work in 2000 on the all-stock sale of their business, Dragon Systems, to a company that later collapsed, leaving them shut out. / Photo: Gretchen Ertl for The New York Times

“I still have not received anything from Goldman,” the executive wrote in an e-mail to the other bank. “Do they know something I should know?”

More than a decade later, that question is still reverberating in a brutal legal battle between Goldman and the founders of Dragon Systems — along with a host of other questions that go to the heart of how financial giants like Goldman operate and what exactly they owe their clients.

James and Janet Baker spent nearly two decades building Dragon, a voice technology company, into a successful, multimillion-dollar enterprise. It was, they say, their “third child.” So in late 1999, when offers to buy Dragon began rolling in, the couple made what seemed a smart decision: they turned to Goldman Sachs for advice. And why not? Goldman, after all, was the leading dealmaker on Wall Street. The Bakers wanted the best.

This, of course, was before the scandals of the subprime mortgage era. It was before the bailouts, before Occupy Wall Street, before ordinary Americans began complaining about “banksters” and “muppets” and “the vampire squid.” In short, before Goldman Sachs became, for many, synonymous with Wall Street greed.

And yet, even today what happened next to the Bakers seems remarkable. With Goldman Sachs on the job, the corporate takeover of Dragon Systems in an all-stock deal went terribly wrong. Goldman collected millions of dollars in fees — and the Bakers lost everything when Read the rest of this entry »

Posted in - Lost In Space: TOTALLY Discombobulated, - Read 'em and weep: The Daily News | Tagged: , , , , , , , , , , , , , | 2 Comments »

 
%d bloggers like this: