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Hillarysworld -> National News -> "Goldman Sachs may admit negligence charges in deal with SEC" (Guardian UK, UTV 5/9/10)
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TOPIC: "Goldman Sachs may admit negligence charges in deal with SEC" (Guardian UK, UTV 5/9/10)
Sanders


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"Goldman Sachs may admit negligence charges in deal with SEC" (Guardian UK, UTV 5/9/10)
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Goldman Sachs may admit negligence charges in deal with SEC

The bank has faced a flurry of lawsuits from shareholders who claim they should have been informed sooner of an SEC inquiry

Sunday, 09 May 2010

The embattled Wall Street bank Goldman Sachs is edging close to accepting lesser charges – possibly involving an admission of negligence – to settle a $1bn fraud prosecution laid by US regulators last month.

An admission of failings by the bank, albeit far short of those alleged by the securities and exchange commission (SEC), would mark a substantial retreat from Goldman's defiant response to the regulator's civil fraud lawsuit, which it continues to argue is wrong "in fact and in law".

The SEC alleges that the bank misled investors over the controversial sale in 2007 of a $1bn (£675m) derivative investment called Abacus tied to a package of mortgage loans.

The prospect of Goldman admitting to shortcomings comes only a week after the billionaire investor Warren Buffett, whose Berkshire Hathaway group has a major stake in Goldman, dismissed the SEC's charges as misguided. But the episode has left the bank struggling to protect its reputation.

Continues



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freespirit


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I wonder how this will impact the campaign coffers of both Dems and Reps.

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Sanders


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The contention of CEO of Goldman Sachs during his testimony was that derivatives are normal part and parcel of their every day life.. They hedge their investments. Well, first level hedging with an insurance company bearing the risk is understandable. Beyond that, it becomes completely fake.

I'd like to see a day when any and all derivatives are traded by specific category of hedge insurance companies that are openly declared as derivative traders. Then, those people who want to invest in that category of high-risk hedge investment can go for those investment, and the rest of us more conservative investors can be spared of the hassles of fake assets.


__________________
Democracy needs defending - SOS Hillary Clinton, Sept 8, 2010
Democracy is more than just elections - SOS Hillary Clinton, Oct 28, 2010

Madam Secretary Blog at ForeignPolicy.com
Project Vote Smart - Stay informed and engaged!
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