Finally:
Goldman Sachs Sued by SEC for Fraud Tied to CDOs (Update1) - Bloomberg.com
It took a while, but the regulators finally decided that betting against a product you are selling constitutes fraud. If GS had been a major league baseball player, they would have been indicted a year ago.
Replies
6
Beach Fanatic
Finally:
Goldman Sachs Sued by SEC for Fraud Tied to CDOs (Update1) - Bloomberg.com
It took a while, but the regulators finally decided that betting against a product you are selling constitutes fraud. If GS had been a major league baseball player, they would have been indicted a year ago.
There is a god.
SEC can only file civil....write your rep to demand criminal charges be brought after this resolves. Just the beginning....
SoWal Insider
It is odd that the investors bought anyway. They are as big players as the creator of the CDO's. But, the bigger irony is that Goldman obviously didn't know how to evaluate the sub prime market books OR were delivered cooked books. The subprime market had been tanking long before Jan '07 when Goldman created the CDO's......and, finally plummeted July/August '07.
Can criminal charges not be filed simultaneously with a civil suit?
Can criminal charges not be filed simultaneously with a civil suit?
Beach Fanatic
Can criminal charges not be filed simultaneously with a civil suit?
I think these white collar crimes go unnoticed for so long due to their complexity and inherent corruption being that money is the product. Only the SEC really has the knowledge, enforcement-wise, to bring any kind of charges for financial wrongdoing. I believe once A is connected to Zed in as clear a language as possible, criminal charges will be brought. That and being found guilty for these first offenses.
Going after GS first is a major announcement to all cronies. None shall pass.
Perp walk coming soon....
Beach Crab
I think these white collar crimes go unnoticed for so long due to their complexity and inherent corruption being that money is the product. Only the SEC really has the knowledge, enforcement-wise, to bring any kind of charges for financial wrongdoing. I believe once A is connected to Zed in as clear a language as possible, criminal charges will be brought. That and being found guilty for these first offenses.
Going after GS first is a major announcement to all cronies. None shall pass.
Perp walk coming soon....
I hope to God that someone nails the SOBs at GS...but...their response about the allegations seem plausable enough to let 'em skate.
In a response to the SEC they said that, despite the fact they were paid $15 million in fees to structure the deal, they actually lost about $90 billion when the CDOs blew up. Therefore, they did NOT capitalize on everyone else's losses. Also, the customers who bought the CDOs were experienced and had done several other deals w/ them prior to the one that made Jonh Paulson billions from the sub-prime meltdown. So they were already sophisticated, experienced customers and GS did not misrepresent the risk to the buyers. More disheartening is the political connections that GS has. Seems like three-quarters (or more!) of the current and last couple of Presidential administrations are made up of Goldman Sachs alumni. Remember how Hank Paulson was the alarmist that ram-rodded the $70 billion thru under the guise that the US economy would collapse...and then the money was never spent the way it was supposed to be?! Nobody called him on it. If they made a movie about GS it would be like a cross between Wall Street and Devil's Advocate!
Beach Fanatic
New Sheriff in Town
Report Finds Big Increase in SEC Cases in 2009
Leaders of the Securities & Exchange Commission devoted much of 2009 to reorganizing and bolstering how the agency detects and prosecutes wrongdoing in the financial marketplace. According to an analysis released today by Gibson, Dunn & Crutcher, the effort seems to be yielding results.
The SEC in calendar year 2009 filed 320 injunctive actions in federal court against 981 defendants, Gibson Dunn determined in its annual review of SEC enforcement. In 2008, the agency brought 232 cases against 620 defendants. It’s a 58% increase in the number of defendants charged, and a 38% jump in new actions filed.
Further, while 35% of cases settled at the time of filing in 2008, only 24% settled in 2009. This shows a willingness by the agency to litigate cases to final judgment, said Gibson Dunn securities practice co-chair Mark Schonfeld.
Y'all be cool.
It is odd that the investors bought anyway. They are as big players as the creator of the CDO's. But, the bigger irony is that Goldman obviously didn't know how to evaluate the sub prime market books OR were delivered cooked books. The subprime market had been tanking long before Jan '07 when Goldman created the CDO's......and, finally plummeted July/August '07.
Can criminal charges not be filed simultaneously with a civil suit?
Report Finds Big Increase in SEC Cases in 2009
Leaders of the Securities & Exchange Commission devoted much of 2009 to reorganizing and bolstering how the agency detects and prosecutes wrongdoing in the financial marketplace. According to an analysis released today by Gibson, Dunn & Crutcher, the effort seems to be yielding results.
The SEC in calendar year 2009 filed 320 injunctive actions in federal court against 981 defendants, Gibson Dunn determined in its annual review of SEC enforcement. In 2008, the agency brought 232 cases against 620 defendants. It’s a 58% increase in the number of defendants charged, and a 38% jump in new actions filed.
Further, while 35% of cases settled at the time of filing in 2008, only 24% settled in 2009. This shows a willingness by the agency to litigate cases to final judgment, said Gibson Dunn securities practice co-chair Mark Schonfeld.
Y'all be cool.
Edited
SoWal Insider
Civil Suit by Shareholders is being filed tomorrow. Even Wall Street is upset with Goldman!
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