Qtec
07-16-2010, 04:32 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> Securities and Exchange Commission today announced that Goldman, Sachs & Co. will pay $550 million and reform its business practices to settle SEC charges <span style='font-size: 17pt'>that Goldman misled <span style="color: #990000">ie conned</span> investors in a subprime mortgage product</span> just as the U.S. housing market was starting to collapse.
In agreeing to the SEC's largest-ever penalty paid by a Wall Street firm, Goldman also acknowledged that its marketing materials for the subprime product contained incomplete information...
In settlement papers submitted to the U.S. District Court for the Southern District of New York, Goldman made the following acknowledgment:
Goldman acknowledges that the marketing materials for the ABACUS 2007-AC1 transaction contained incomplete information. In particular, it was a mistake for the Goldman marketing materials to state that the reference portfolio was "selected by" ACA Management LLC without disclosing the role of Paulson & Co. Inc. in the portfolio selection process and that Paulson's economic interests were adverse to CDO investors. Goldman regrets that the marketing materials did not contain that disclosure.
In April, the SEC charged Wall Street's most profitable bank with civil fraud over complex mortgage securities sold under its 'Abacaus' deals. The SEC alleged that Goldman failed to disclose the securities in the Abacus portfolio were chosen by another bank client, the hedge fund manager John Paulson, who made billions betting against the housing market. <span style='font-size: 17pt'>The securities were, according to the SEC, secretly designed to fail.</span>
Still, <u>the bank's stock surged today </u>(scroll down for a chart) rising 4.43 percent as rumors swirled about a settlement. (The bank's stock continued rising an additional 5 percent in after hours trading.) </div></div>
Lets put this fine into perspective.
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">With a cost of roughly $550 million (plus millions in legal fees), Goldman Sachs likely came out ahead for the day, as the stock's surge added hundreds of millions to the bank's market cap. <span style='font-size: 20pt'>The settlement amount comes to roughly <span style="color: #3333FF">3.4 percent of the bank's 2009 bonus pool.</span></span> </div></div>
Its like a guy found being guilty of embezzeling $1 million from the company he works for and as punishment he gets a promotion and a $5 million bonus!
Where is the outrage?
Q
In agreeing to the SEC's largest-ever penalty paid by a Wall Street firm, Goldman also acknowledged that its marketing materials for the subprime product contained incomplete information...
In settlement papers submitted to the U.S. District Court for the Southern District of New York, Goldman made the following acknowledgment:
Goldman acknowledges that the marketing materials for the ABACUS 2007-AC1 transaction contained incomplete information. In particular, it was a mistake for the Goldman marketing materials to state that the reference portfolio was "selected by" ACA Management LLC without disclosing the role of Paulson & Co. Inc. in the portfolio selection process and that Paulson's economic interests were adverse to CDO investors. Goldman regrets that the marketing materials did not contain that disclosure.
In April, the SEC charged Wall Street's most profitable bank with civil fraud over complex mortgage securities sold under its 'Abacaus' deals. The SEC alleged that Goldman failed to disclose the securities in the Abacus portfolio were chosen by another bank client, the hedge fund manager John Paulson, who made billions betting against the housing market. <span style='font-size: 17pt'>The securities were, according to the SEC, secretly designed to fail.</span>
Still, <u>the bank's stock surged today </u>(scroll down for a chart) rising 4.43 percent as rumors swirled about a settlement. (The bank's stock continued rising an additional 5 percent in after hours trading.) </div></div>
Lets put this fine into perspective.
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">With a cost of roughly $550 million (plus millions in legal fees), Goldman Sachs likely came out ahead for the day, as the stock's surge added hundreds of millions to the bank's market cap. <span style='font-size: 20pt'>The settlement amount comes to roughly <span style="color: #3333FF">3.4 percent of the bank's 2009 bonus pool.</span></span> </div></div>
Its like a guy found being guilty of embezzeling $1 million from the company he works for and as punishment he gets a promotion and a $5 million bonus!
Where is the outrage?
Q