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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (29283)	7/15/2010 5:51:08 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 71441

Yes it is, at least for the squid: >>> Goldman Sachs Will Settle Fraud Case for $550 Million . On Thursday July 15, 2010, 5:04 pm Goldman Sachs agreed Thursday to pay a record $550 million to settle claims it misled investors about a subprime mortgage product it sold in 2007, resolving a major public relations nightmare for the Wall Street financial giant. The settlement, first reported by CNBC, sent Goldman shares (NYSE: gs) up sharply in after-hours trading. (Click here for an after-hours quote) The Securities and Exchange Commission accused Goldman in April of securities fraud stemming from the 2007 sale of derivatives linked to mortgage securities. The SEC said Goldman misled investors in a subprime mortgage product 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 acknowledged that its marketing materials for the subprime product contained incomplete information, the SEC said in a statement. In its April 16 complaint, the SEC alleged that Goldman misstated and omitted key facts regarding a synthetic collateralized debt obligation it marketed that hinged on the performance of subprime residential mortgage-backed securities. Goldman failed to disclose to investors vital information about the CDO, known as ABACUS 2007-AC1, particularly the role that hedge fund Paulson, played in the portfolio selection process and the fact that Paulson had taken a short position against the CDO, the SEC said. Last month, Goldman was granted a thirty day-extension to respond to the SEC's lawsuit, pushing the deadline to Monday, July 19. Lawyers for Goldman reportedly met recently with the SEC to propose settlement terms. The company had been trying to get the SEC to drop fraud allegations in favor of charges less damaging to its reputation.