“The government has accused Goldman Sachs & Co. of defrauding investors by failing to disclose conflicts of interest in mortgage investments as the housing market was faltering. “
The SEC announced today that they will be holding Goldman Sachs responsible for not informing their clients of some risks associated with mortgage investments. They are alleging that Goldman created subprime mortgages, which were sold to investors, and then Goldman bet against them for a profit. The loss, according to investors, is valued at over $1 billon dollars. Of course Goldman Sachs shares fell almost immediately after the SEC reported its findings.
I just find this to be absolutely disheartening that just when you think things are turning around for the economy, another dirt-bag move comes to light. The SEC is put into place for a reason, did Goldman honestly think that either A) there wouldn’t be a whistle-blower or B) someone @ the SEC would put the numbers together and come to this realization. Of course, these charges are new as of today (Friday, April 16th) so we will see how this plays out. Maybe Goldman Sachs is innocent after all. But then again, I highly doubt that the SEC would bring huge allegations against such a leading firm such as this one if they didn’t have solid backing.
Article: http://www.msnbc.msn.com/id/36597290/ns/business-us_business/
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