Sunday, 18 April 2010

Fess up - you grinned when you heard that Goldman Sachs was charged with fraud, didn't you?


"WALL STREET POWERHOUSE ACCUSED OF FRAUD: The government says Goldman Sachs & Co. sold mortgage investments without telling the buyers that the securities were crafted with input from a client who was betting on them to fail. Goldman denies the civil fraud allegations."
{Google News}

The Commission brings this securities fraud action against Goldman, Sachs & Co. ("GS&Co") and a GS&Co employee, Fabrice Tourre ("Tourre"), for making materially misleading statements and omissions in connection with a synthetic collateralized debt obligation ("CDO") GS&Co structured and marketed to investors. This synthetic CDO, ABACUS 2007AC1, was tied to the performance of subprime residential mortgage-backed securities ("RMBS") and was structured and marketed by GS&Co in early 2007 when the United States housing market and related securities were beginning to show signs of distress. {SEC versus Goldman Sachs & Co. and Another}

I know I had a grin from ear to ear when I heard that the financial anaconda had finally been caught out and I think I'm not alone in that. I'm not sure who demanded trial by jury but I'm willing to bet that there will be few in any American juror pool who will be unaffected by the sub-prime debacle and it aftermath.

"Ever since the financial catastrophe of 2007-08, Goldman Sachs has been hyper-vigilant when it comes to the media. Many like myself have been complained about and rudely denied access. The blogosphere has been patrolled 24/7 so that critics can be promptly pounced on.
Now we know why.
Yesterday's bombshell announcement that Goldman was charged with fraud by the U.S. Securities and Exchange Commission is hardly surprising. This is Wall Street's last survivor, and it is about to be ordered off the island too, so to speak." {My confidence in the SEC is restored}

Tweets on the subject:
timbray: Any morning where Goldman Sachs is getting prosecuted by the Feds is a good morning. Pity it's civil not criminal.
theexpert: Please ... PLEASE, prove to me that Twitter has some relevance. Make Goldman Sachs a trending topic.
bobhayward: RT @Lucas_Wyrsch: In Goldman Sachs We Do Not Trust http://dlvr.it/XFbl http://myloc.me/65XdS
KeithSwiderski How can the government sue Goldman Sachs? I thought Goldman Sachs ran the government?

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