Posted on 04/16/2010 8:49:07 AM PDT by Sleeping Freeper
SAN FRANCISCO (MarketWatch) -- The Securities and Exchange Commission on Friday charged Goldman Sachs & Co. and one of its vice presidents for defrauding investors by misstating and omitting key facts about a financial product related to subprime mortgages.
The SEC alleged in a lawsuit that Goldman structured and marketed a collateralized debt obligation that hinged on the performance of subprime residential mortgage-backed securities. However, it failed to disclose the role that a major hedge fund, Paulson & Co., played in the portfolio selection process as well as the fact that the hedge fund had taken a short position against the CDO.
"Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party," said Robert Khuzami, director of the division of enforcement, in a statement.
(Excerpt) Read more at marketwatch.com ...
Oh wow! That is the pontential for a bailout in the “wrong” direction! The banksters better grab their “bonuses” fast before the courts put an end to the party! Even though they got their mitts into the Treasury for a bailout; their incompetence might crash the banks anyway. We are so screwed.
Thanks so much for taking the time to give me a better link.
DO YOU WANT TO BE HEARD?
GET ON THE BUS and TELL YOUR FLORIDA LEGISLATORS YOUR SIDE OF THE STORY!
There is some terrible legislation in front of the Florida Legislature that will eliminate our rights in this foreclosure and unemployment mess.
WE are organizing a Freedom Ride Circa 2010: A Pilgrimage:
http://www.foreclosurehamlet.org/profiles/blogs/freedom-ride-circa-2010-a
COME ON ALONG for a historic event.
Buses are filling fast! Email your group info to ForeclosureFraud@gmail.com
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