Tag Archives: Goldman Sachs

he government on Friday accused Wall Street’s most powerful firm of fraud, saying Goldman Sachs & Co.

Goldman Sachs accused of fraud by Securities Exchange Commission (read SEC complaint)

The United States Securities and Exchange Commission has accused Goldman Sachs & Co. of defrauding investors. A civil lawsuit was filed against the Wall Street powerhouse on Friday, April 16, 2010. The civil suit alleges that Goldman Sachs & Co. created then sold subprime mortgage investments that were intend to fail. The complaint states that Goldman Sachs & Co., Vice President, Fabrice Tourre, made misleading statements and omissions and was vital in creating and selling the fraudulent investments.
Goldman Sachs responded to the complain on April 16, 2010 by releasing the following statement.
“The SEC’s charges are completely unfounded in law and fact and we will vigorously contest them and defend the firm and its reputation.
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.”

You may read the SEC Complaint against Goldman Sachs in the embedded document below.

The people says:

1.They will hire the best lawyers to protect their ass..ets and circle the wagons rather then admit fault. They are crooks and wall street and investment bankers/firms need strict regulating and it should have happened long ago.

Gone is the day when Investmant meant that you entrusted that your firm would do its best to make wise speculation on the markets and build a reputation doing so! Now it is who has the most complex ‘schemes’ for dirty brokerage deals.

Now you can buy a price of paper investing in gold, but it’s a piece of paper as they is no bullion to back it. This was obviously fraud and there is no way anyone should be saying otherwise (but here comes the smoke and mirrors…)

2.My only surprise is, it took them so long to put the cheats in the dock!

Whilst every major financial houses were hammered by the Subprime disaster created by them Wall Street lumberjacks, Goldman and their co-sponsers were raking it in by the billions.
Only a fool with a running nose could have escaped the stench of the killings from Goldman’s yard!

(Agencies)     Updated: 2010-04-17 00:48
NEW YORK – Goldman Sachs Group Inc was charged with fraud on Friday by US securities regulators in the structuring and marketing of a debt product tied to subprime mortgages.

The Securities and Exchange Commission lawsuit alleges that Paulson & Co, a major hedge fund run by the billionaire John Paulson, worked with Goldman in creating the collateralized debt obligation, and stood to benefit as its value fell, costing investors more than $1 billion.

Fabrice Tourre, a Goldman vice president who the SEC said was principally responsible for creating the product, was also charged with fraud.
Paulson has not been charged. “Goldman made the representations here to the investors, Paulson did not,” SEC enforcement chief Robert Khuzami said on a conference call.

The lawsuit, filed in Manhattan federal court, marks a dramatic expansion of regulatory efforts to hold people and companies responsible for activity that contributed to the nation’s financial crises. It also comes as lawmakers in Washington debate sweeping reform of financial industry regulation.

“This is big,” said Walter Todd, a portfolio manager at Greenwood Capital Associates LLC. “Reputationally, obviously, it is damaging. I’m still kind of in shock.”

In morning trading, Goldman shares sank $22.30, or 12.1 percent, to $161.97 on the New York Stock Exchange. Other bank stock also fell