Friday, April 16, 2010

Goldman Sachs charged with fraud by SEC | Reuters

Reuters reports Goldman Sachs charged with fraud by SEC "The SEC alleged that Goldman structured and marketed a synthetic collateralized debt obligation that hinged on the performance of subprime residential mortgage-backed securities, and which cost investors more than $1 billion."

I'm glad they are finally digging into it and finding actual (I guess I have to say aledged) crimes.

2 comments:

Anonymous said...

These are civil charges not criminal charges, but it's a start.

Therefore, I must still wait for the perp walks to start.

TT

Anonymous said...

And of course, the RICO statute should apply in a criminal case here because Goldman Sachs and their client Paulson et. al. conspired together to structure the fraudulent security.

Yes, this is only about a single security. Can't wait to see what other interesting gems of creative financial genius the SEC (and hopefully the Justice Department) digs up.

TT