Goldman Sachs

[armaghniac]

Some chatter on Twitter about a prominent Goldman Sachs figure being arrested.
If this is true it should be an example to authorities locally and a warning to chancers.

from ft.com
Goldman shares were driving the market as they plummeted 15.6 per cent to $155.57 after the US Securities and Exchange Commission charged the bank with fraud with respect to the packaging and selling of collateralised debt obligations to hedge funds

[Denn Forever]

According to BBC news GS were both acting as the bank and the customer. 

Goldman Sachs is accused of fraud 
 
Goldman Sachs has been accused of fraud in a civil suit filed by US financial watchdog, the Securities and Exchange Commission (SEC).

It alleges that the bank marketed a complex sub-prime mortgage package but did not reveal that a major hedge fund had bet against the securities.

Goldman's shares fell more than 10% on the news of the accusations against the firm and one of its vice presidents.

The bank escaped relatively unscathed from the financial crisis.

'Regulation risk'

The SEC said that investors had lost about $1bn (£650m) in the rogue product - known as Abacus.

This is the first time regulators have acted against a Wall Street deal that allegedly helped investors take advantage of the US housing market collapse.


GOLDMAN SACHS GROUP INC.
Last updated: 16 Apr 2010, 17:39 UK
*Chart shows local time
   
price change % 
161.08 -23.19 -12.58 



More data on this share price 
Goldman did not tell investors "vital information" about the Abacus product, the watchdog said.

That included not revealing that a major hedge fund, Paulson & Co, was involved in choosing which securities would be part of the portfolio, and had bet its value would fall.

Goldman vice president Fabrice Tourre, who the SEC says was principally behind the creation of Abacus, was also charged.

Analyst Matt McCormick of Bahl & Gaynor said that the allegation could "be a fulcrum to push for even tighter regulation".

"Goldman has a fight in front of it," he said.

[CiKe]

Hardly prominent, a VP in an investment bank is a nobody. Doesn't do any good to the GS name which is already being dragged through the mud, but seems to me there has been blood in the water for a while and they wanted to get somebody.