Surprise of surprises. It appears the U.S. Securities and Exchange Commission may have finally "grown a pair." Bloomberg.com reported about an hour ago that the SEC has sued Goldman Sachs for fraud, in connection with its Collateralized Mortgage Debt Security Scam (click the foregoing link even if you don't click any of the others on this page), which during the past year brought the world economy to its knees. Here's the lede from this morning's beaking Bloomberg.com story:
April 16 (Bloomberg) -- Goldman Sachs Group Inc. was sued by U.S. regulators for fraud tied to collateralized debt obligations that contributed to the worst financial crisis since the Great Depression.Read the full writeup here:
The firm’s shares tumbled as much as 16 percent and financial stocks slumped.
Goldman Sachs misstated and omitted key facts about a financial product tied to subprime mortgages as the U.S. housing market was starting to falter, the Securities and Exchange Commission said in a statement today. The SEC also sued Fabrice Tourre, a Goldman Sachs vice president.
• Goldman Sachs Sued by SEC for Fraud Tied to CDOsAfter sitting on its thumbs for over a year, it would appear that the SEC has finally gotten off its neoCON ass, and decided, however belatedly, to discharge its duty as the primary U.S. securities market regulator, and to actually enforce the law.
What a novel idea.
