Goldman warned of SEC suit 9 months ago

Discussion in 'Wall St. News' started by ASusilovic, Apr 17, 2010.

  1. SAN FRANCISCO (MarketWatch) -- Goldman Sachs Group Inc. was warned nine months ago that Securities and Exchange Commission staff wanted to bring a civil case against it, but the investment bank didn't specifically disclose this to investors in regulatory filings, Bloomberg News reported Saturday, citing unidentified people it credited with direct knowledge of the communications.

    http://www.marketwatch.com/story/goldman-had-9-months-warning-from-sec-report-2010-04-17

    I smell some attorneys in New York City getting very hungry reading this article...LOL!

    :cool:
     
  2. Visitors

    Visitors

  3. Stupid blunder by Goldman. They still haven't realised that the risk/cost of appearing to be assholes is just as big as actually being assholes. They need to be whiter than white, and play watertight defence - instead they think they are untouchable and are taking unnecessary political risks.
     
  4. Funny how the SEC spends roughly 2 years investigating Goldman and this customized synthetic CDO transaction with John Paulson, and yet the only charge that the SEC comes up with is on a then, 29-year old VP who was principally responsible for structuring and marketing the vehicle.

    Notice that the SEC did not charge one single MANAGING DIRECTOR.
    Notice also that they did not seek to "settle" last year.

    Seems to me like the SEC is gonna have a pretty tough slog trying to prove that Goldman had systematic intent and fostered such a culture in regards to this transaction.

    Remember, the legal bar for disclosure is much higher for underwriters. This is not the case in this situation.
     
  5. "Several legal experts suggested Goldman and the SEC had reached an impasse over a settlement before the charges were announced. They speculated that Goldman was unwilling to admit that it allowed the hedge fund to create a portfolio of securities that was designed to fail because that admission could do irreparable harm to Goldman's reputation."
     
  6. pspr

    pspr

  7. schizo

    schizo

    You forget that Al Capone wasn't charged for murder and other heinous crimes but for tax evasion, which was enough to put him behind bars. After that the sorry ass is merely a sitting duck ready to be roasted for Uncle Sam's pleasure.
     
  8. WTF. Served a Wells Notice 9 months ago and never reported it to shareholders? Fiduciary duty? This alone should be enough to shit-can the executive members of the board.
     
  9. I would sue Blanky personally. I think D&O insurance doesn't apply when gross negligence is involved...
     
    #10     Apr 18, 2010