Forget Tourre's billets-doux & possible divorce: SEC referred Goldman to prosecutors for CRIMINAL PROBE!

Wall Street is getting hot. In a bad way. It’s starting to smell like armpits and people crapping on themselves.
At first, we thought it was just a “DIVORCE” we were looking at for Goldman and some of its top derivatives “frankensteins” like Fabrice Tourre. We thought they’d just get a pat on the back and sign a separation agreement, i.e., divorce, and move on after the grilling on Capitol Hill. But it’s much, much worse. Potentially explosive, actually. The WSJ reported tonight that a criminal probe has been commenced in this case against GS! OMG!
They are looking into charging the firm with securities fraud! Blankfein must be defecating right now, I swear. He’s going ape shit. I mean, even if they unloaded Tourre (they are reportedly making him their “whipping boy”), Blankfein’s still liable because the buck stopped with him, as CEO of Goldman. Even if he didn’t know what Tourre was doing, he ought to have known what Tourre was doing. Securities fraud….holy sh#$!
The thing is, I am not persuaded that what Goldman did amounts even to civil fraud never mind criminal fraud. I really don’t know the law on this, but it seems to me that while what they did had an appearance of ruthlessness and coldblooded greed, it was capitalism at its worse, ugly as heck, but not a crime.
My understanding is that Goldman’s shareholders, to whom they owed a fiduciary duty, made money at the end of the day. Profits are up, not down – feel free to correct me on this. But that is what I think I read…so, where is the fraud towards the shareholders? Whether civil or criminal? Okay so GS did their research and saw that the housing bubble was going to pop.  It might have been nice, maybe even ethical for them to what, call the president? The chairman of the SEC? Somebody? And say what? “The housing bubble will be crashing soon, stop the subprime lending”? Maybe they should have. To be nice. But did they have a duty to do it? I don’ t know. I am not convinced they had a legal duty which was breached. They were capitalist monsters, yes. But that doesn’t make them criminals. But then again, I didn’t take securities law in law school. So don’t quote me. Please don’t quote me.
Oh wait. This is a divorce blog. What is my divorce angle with this one? Yikes….well, hey, call me a monster, but if I were the wife of any of those players? I’d be calling my divorce attorney right about now and thinking about filing for divorce and trying to get what I could of the distributable assets before the feds move in and put all my stuff in receivership, i.e., freeze assets the way they did with Ruth Madoff and a bunch of other broads. Yes, I know about RICO. But notice I said, “distributable assets.” Because you have to figure attorneys fees alone for a federal securities fraud case will be astronomical and will eat up a lot of those assets. No. Pro-activity is called for here. Wives need to start to think about self-preservation just in case this entire firm goes under water.