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:
These are civil charges not criminal charges, but it's a start.
Therefore, I must still wait for the perp walks to start.
TT
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
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