Goldman Sachs vs SEC!

hiimandy1

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"The Securities and Exchange Commission on Friday charged Goldman Sachs Group Inc. with defrauding investors, alleging that Goldman let a big hedge fund fill a financial product with risky subprime mortgages and then failed to disclose that to the product's buyers.

The SEC said in the civil complaint that Goldman and Fabrice Tourre, then vice president, created and sold opaque collateralized-debt obligations, or CDOs, that hinged on the performance of subprime-mortgage-backed securities. The complaint charges that Goldman promoted these securities to customers while failing to disclose that a major hedge-fund client had a role in picking the securities and was betting against them.

Goldman Sachs, which in a statement called the accusations "completely unfounded in law and fact," could face steep fines and be on the hook to repay nearly $1 billion of investor losses. The charges mark the first action regulators have taken against a Wall Street firm for betting on the housing market's collapse, and represents another blow to an investment bank under attack for how it handled the financial crisis."

Full article at:
http://online.wsj.com/article/SB100...20845670844.html?mod=rss_Today's_Most_Popular

This is just going to be fun to watch, a firm as organized as Goldman compared to the fankly bumbling SEC.
 
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