Goldman Sachs charged with fraud.

[res0nat0r]

http://www.sec.gov/news/press/2010/2010-59.htm

Wowee.


SEC Charges Goldman Sachs With Fraud in Structuring and Marketing of CDO Tied to Subprime Mortgages

FOR IMMEDIATE RELEASE
2010-59

Washington, D.C., April 16, 2010 — The Securities and Exchange Commission today charged Goldman, Sachs & Co. and one of its vice presidents for defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages as the U.S. housing market was beginning to falter.
Additional Materials

• Litigation Release No. 21489
• SEC Complaint

The SEC alleges that Goldman Sachs structured and marketed a synthetic collateralized debt obligation (CDO) that hinged on the performance of subprime residential mortgage-backed securities (RMBS). Goldman Sachs failed to disclose to investors vital information about the CDO, in particular the role that a major hedge fund played in the portfolio selection process and the fact that the hedge fund had taken a short position against the CDO.






Good...someone needs a foot in the ass for this.

[floridaorange]

Re: Goldman Sachs charged with fraud.

About fecking time. Wow I feel a little bit better after reading this.

[runningman]

Re: Goldman Sachs charged with fraud.

Let' save the celebration for when someone is convicted and goes to jail. If they get a fine I will lose my mind.

It's a start I guess.

[floridaorange]

Re: Goldman Sachs charged with fraud.

^My only "Canadian" cousin worked for GS btw...

...just say'n

[res0nat0r]

Re: Goldman Sachs charged with fraud.

[runningman]

Re: Goldman Sachs charged with fraud.



A lot of people from all different corners of the earth work for GS. I knew there was a little "corrupt" in your blood.

[floridaorange]

Re: Goldman Sachs charged with fraud.

^Cousin-in-law! I should have specified.


p.s. "you don't know sh*t Lebowski"

[superdave]

Re: Goldman Sachs charged with fraud.

Yes, it's about time that Goldman got charged with something. I also think the SEC should have charged the hedge fund manager that made billions off shorting against the mortgages he selected.

[Highsteppa]

Re: Goldman Sachs charged with fraud.

Even if they don't get a conviction, something like this could damage their reputation badly enough to cause their client portfolio to jump ship.

[res0nat0r]

Re: Goldman Sachs charged with fraud.

^that is totally possible. im sure they will lose some stature and not be the gold standard firm now at least, which is good imo, fuck em. i hope people bail on their ass and they reap the consequences. jail time though? i doubt it which is a travesty, i would love to see some fat ass cats going to federal pound me ass prison. damnit i wish i was a judge, i would be a total dick.

[Highsteppa]

Re: Goldman Sachs charged with fraud.

Nah, you're right; up here in Canada Bank of Montreal execs were caught pulling some stock chicanery (buying their own stock at the end of the day to inflate their standing at the end of the day) back in 1999-2000. Most got temporary reprieves that wouldn't allow them to trade for a year or two from the Canadian Securities Board and maybe a few fines.

I'm thinking they'll probably issue a few fines, but I seriously doubt any jail time will come out of it - with maybe the VP resigning.

[superdave]

Re: Goldman Sachs charged with fraud.

From what I read, it appears to be a civil trial so no jail time will come out of this only fines. The timing for this lawsuit appears to not be coincidental too since the Congress is debating a financial legislation bill.

[res0nat0r]

Re: Goldman Sachs charged with fraud.

This is a very interesting take on this:

http://whitecollarfraud.blogspot.com/2010/04/did-clever-sec-bait-goldman-sachs-into.html

[runningman]

Re: Goldman Sachs charged with fraud.

From what I read, it appears to be a civil trial so no jail time will come out of this only fines. The timing for this lawsuit appears to not be coincidental too since the Congress is debating a financial legislation bill.

Plus elections are coming and they have to look like they are tough on the issue. What a joke it is so obvious it makes me want to throw up.

[res0nat0r]

Re: Goldman Sachs charged with fraud.

The above article is suggesting that the SEC filed the complaint late on Friday to get a reaction from the company w/o a lot of time to think and oversight by their lawyers. Since they made statements over the weekend that could be knee jerk reactions and lies, they can be held accountable in the future for more possible lawsuits and also from investors who were misled from these very press releases stating that these SEC complains are false. Pretty interesting.