Friday, 16 April 2010

Fried calamari

Goldman Sachs, sometimes known as Government Sachs, or Goldmine Sachs, and sometimes A Giant Vampire Squid sticking its Blood-Funnel in every deal, and generally considered the one untouchable investment bank, has just been bitten by the SEC...

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 SEC said that investors had lost about $1bn (£650m) in the rogue product - known as Abacus. (Link)
It remains to be seen whether this one has legs, but a multi-billion dollar fine could be on the cards!

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