Democratic Underground - Goldman Sachs Sued by SEC for Fraud Tied to CDOs

Reply #40: Goldman Sachs Sued by SEC for Fraud Tied to CDOs [View All]

Po_d Mainiac

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Fri Apr-16-10 12:16 PM
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40. Goldman Sachs Sued by SEC for Fraud Tied to CDOs

Source: By Joshua Gallu and Christine Harper April 16 (Bloomberg)

Goldman Sachs Group Inc. was sued by U.S. regulators for fraud tied to collateralized debt obligations that contributed to the worst financial crisis since the Great Depression. The firm’s shares tumbled as much as 16 percent and financial stocks slumped.

Goldman Sachs misstated and omitted key facts about a financial product tied to subprime mortgages as the U.S. housing market was starting to falter, the Securities and Exchange Commission said in a statement today. The SEC also sued Fabrice Tourre, a Goldman Sachs vice president.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=agT1H2ffyJCA

The regulators have finally grown a pair!!

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Reply #40: Goldman Sachs Sued by SEC for Fraud Tied to CDOs [View All]