Goldman Sachs bears the brunt and goes down
Goldman Sachs settled the SEC civil charges in an outside the court settlement for 550 million US dollars.
GOLDMAN SACHS settled the SEC civil charges in an outside the court settlement for 550 million US dollars, the Securities and Exchange Commission 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. The SEC alleges that Goldman Sachs Vice President Fabrice Tourre was principally responsible for the fraud. Tourre structured the transaction, prepared the marketing materials, and communicated directly with investors.
The jury is still out on Fabrice. He could still be charged with fraud. This means either one of two things happened:- 1. Goldman was not able to get the SEC to change the language in Fabrice's fraud charge. So they hung Fabrice out to dry. 2. Fabrice didn't want to settle and is fighting the charges. Goldman Sachs Group Inc said quarterly earnings tumbled 82 percent, coming in well short of expectations, as trading and underwriting revenue slumped, raising questions about how well Wall Street's preeminent bank can navigate a shifting industry landscape. Goldman just settled for chump change. $550 million is nothing to them.They're winners because they got the SEC to change the SEC charges from fraud to a mere omitting of key information. So they got rid of the fraud charges completely. Huge !
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