Print

[Abacus] SEC charges Goldman Sachs with subprime fraud

Posted by Izabella Kaminska on Apr 16 15:42.

Flashes coming through now:

*SEC CHARGES GOLDMAN SACHS WITH FRAUD IN CDO TIED TO SUBPRIME

The link to the full SEC release is here.

Goldman Sachs failed to disclose to investors vital information about the CDO, in particular the role that a major hedge fund played in the portfolio selection process and the fact that the hedge fund had taken a short position against the CDO.

The SEC alleges that one of the world’s largest hedge funds, Paulson & Co., paid Goldman Sachs to structure a transaction in which Paulson & Co. could take short positions against mortgage securities chosen by Paulson & Co. based on a belief that the securities would experience credit events.

Goldman Sachs shares were descending rapidly on the news. Down 9 per cent at 167 pixel time on Friday.

Article Series - Abacus

  1. SEC charges Goldman Sachs with subprime fraud
  2. The case involving ABACUS 2007-AC1
  3. Markets Live transcript - Goldman/SEC special - 16 Apr 2010
  4. Formerly The Greatest Trade Ever
  5. Paulson: 'It's our money now'
  6. SEC/Goldman linkfest
  7. Introducing Fabrice "fabulous Fab" Tourre
  8. 'Goldman Sachs is disappointed...'
  9. This CDO is a Democrat
  10. ACA's rather disastrous CDO forays
  11. The analysts react
  12. A Goldman blogger round-up
  13. A CDO litigation risk league table
  14. Fisking Goldman's latest rebuttal
  15. The Goldman defence documents
  16. Fabrice Tourre scores an indefinite paid holiday
  17. Der Abakus
  18. Is this the sound of a bandwagon?
  19. The experience of Laura Schwartz
  20. Fabrice Tourre goes underground
  21. The exemplary Magnetar CDOs
  22. Dear Paulson investor...
  23. Appearing soon in the Senate - fabulous Fab (updated)
  24. In defence of Goldman Sachs
  25. For RBS, a routine deal became an $840m mistake
  26. The prospectus
  27. More Goldman voyeurism
  28. Tail risk in the Rhineland
  29. The running order in Room 106
  30. 'My name is Fabrice Tourre'
  31. Live, from Room 106
  32. Goldman in DC: A blogger round-up
  33. Call the cops
  34. Understated Research Headline of the Year, Part II
  35. Goldman TV
  36. Fitch revises Goldman to outlook negative
  37. The many legal risks of Goldman
  38. Goldman faces new CDO case
  39. Goldman's shares hit 52-week low

This entry was posted by Izabella Kaminska on Friday, April 16th, 2010 at 15:42 and is filed under Capital markets. Tagged with , . Edit this entry.

Print