Friday, April 16, 2010

Being Goldman Sachs

The Securities and Exchange Commission has charged with fraud. Great! The Wall Street Journal reports that Goldman Sachs was charged 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's civil lawsuit is one of the biggest moves by authorities in response to the financial crisis of 2007-08, and it sent Goldman shares sharply lower. The firm's shares were down about twelve percent around midday, and the Dow Jones Industrial Average was off more than one percent." Hallelujah!


zorro said...

Here is a very short article from the NYPost (owned by Fox). It is implying that the Goldman Sacks case is
'suspicious'. The right is attempting to make the case appear to be political.

Judith Ellis said...

Yeah, Zorro, reports the rag, The New York Post. Goldman Sachs and Barclays, an international bank based in England, hedged their "bets" with AIG. Goldman received $12.8 billion with the AIG bailout, in addition to its $10 billion directly received from the government, and Barclays received $8.5 billion from the same source. It is probably clear why Barclays would defend Goldman and insinuate that the SEC has political motives. Hank Greenberg, the former chairman and CEO of AIG, said when considering why some banks were allowed to fail and others were not that "a blue ribbon commission with subpoena powers should be established."