Goldman Sachs Gears Up For Fighting SEC Allegation
April 21st, 2010 - 7:24 pm ICT by GDBy Ranjan Bhaduri
Apr 21, (THAINDIAN NEWS) Wall Street banking giant Goldman Sachs Group Inc which is facing severe allegation from the US Securities and Exchange commission of misleading its investors, has embarked in to damage control mode. The SEC earlier charged the entity of not informing its investors about a risky hedge fund which resulted in the investors incurring huge losses. Goldman Sachs denied the allegation vehemently and said that it will prove its innocence in the case. In a recent development, the bank told its Japanese client that the much disputed collateralized debt obligation related to the SEC lawsuit was not sold in the nation. The news was confirmed by a Goldman Sachs spokeswoman Hiroko Matsumoto. However, she did not reveal the reaction of the Japanese clients of Goldman Sachs.
The SEC lawsuit was slapped on Goldman Sachs on April 16th which created buzz in the market. The implication of the lawsuit is being felt in other countries too. Gordon Brown, the Prime Minister of UK has instructed the Financial Services Authority of Britain to initiate an inquiry since the outcome of the suit can affect the company worldwide. As per the SEC allegation, Goldman Sachs made and sold the CDO in 2007 which was linked to the infamous subprime mortgages that played a role behind the Wall Street turmoil in 2008. The hedge fund however, has not been sued by the SEC.
Goldman Sachs is busy trying to convince its clients that it did not do anything illegal and claimed it lost some money in the hedge fund, contrary to what SEC has alleged. The market analysts are watching the developments.
- Goldman Sachs Under The Scanner Of US Securities And Exchange Commission - Apr 17, 2010
- SEC charges Goldman Sachs with civil fraud - Apr 16, 2010
- Goldman Sachs charged with fraud by US regulators - Apr 17, 2010
- Rajaratnam faces new charges in Goldman Sachs 'fraud' - Apr 17, 2010
- Civil Fraud Charges Filed: Goldman Sachs and Fabrice Tourre - Apr 17, 2010
- Billionaire Raja Rajaratnam held guilty of fraud - May 11, 2011
- Former Goldman director Rajat Gupta charged in US insider case - Mar 02, 2011
- British watchdog to investigate Goldman Sachs - Apr 20, 2010
- Citigroup to pay $285 mn to settle fraud charges - Oct 20, 2011
- Emails Demonstrate That Goldman CEO Extolled Profit From Subprime Shorts - Apr 26, 2010
- Rajat Gupta asks US judge to hear his suit - Apr 13, 2011
- Rajat Gupta strikes back at US regulator - Mar 19, 2011
- Goldman Sachs warns against investing in India, China - Jan 18, 2011
- Rajat Gupta threw away his duties: Prosecution - May 22, 2012
- US sues financial firms over mortgage losses - Sep 03, 2011
Tags: allegation, cdo, collateralized debt obligation, damage control mode, gears, goldman sachs, goldman sachs group, goldman sachs group inc, gordon brown, hedge fund, hiroko, implication, japanese client, japanese clients, market analysts, prime minister of uk, sachs group inc, securities and exchange commission, spokeswoman, subprime mortgages