SEC files civil suit against Goldman Sachs for mortgage fraud.

[Soul Crusher]

SEC Charges Goldman Sachs With Fraud On Subprime Mortgages
www.businessinsider.com
Joe Weisenthal | Apr. 16, 2010, 10:41 AM | 782 |  2
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This just broke on CNBC, and the NYT has a huge story about this already...

Goldman Sachs, which emerged relatively unscathed from the financial crisis, was accused of securities fraud in a civil suit filed Friday by the Securities and Exchange Commission, which claims the bank created and sold a mortgage investment that was secretly devised to fail.

The move marks the first time that regulators have taken action against a Wall Street deal that helped investors capitalize on the collapse of the housing market. Goldman itself profited by betting against the very mortgage investments that it sold to its customers.

Here's the SEC release...

Look what it says about Paulson:

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.

More to come

Tags: Goldman Sachs
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Paulson, Geithner Blankfien  all should . . . . . . . . ..

[Option D]

Obama did it

[Soul Crusher]

Obama did it

Good, then I applaud this.  Goldman Sachs is vulture organization. 

[Straw Man]

GS only emerged unscathed because the US Taxpayers covered AIG's CDS's @ 100 cents on the dollar (even though counterparties were already willing to take less).   If the US Taxpayer did not do that then GS wouldn't even exist today

whatever judgement they get will be a token gesture