More bad news for Goldman Sachs

Federal prosecutors in New York have launched a criminal investigation into Goldman’s structuring and marketing of a collateralized debt obligation that cost investors $1 billion.  For the time being, the criminal probe involves only the U.S. Attorney’s Office in Manhattan, and not the Federal Bureau of Investigation or other federal agencies. The investigation stems from a criminal referral by the Securities and Exchange Commission. … [Read more...]

What’s next for Goldman Sachs?

The fraud charges filled by the SEC against Goldman Sachs could be a pivotal moment in financial industry as the United States continues its painful recovery from the financial crisis.     According to some experts this case signals that the regulators could eventually target other banks over how much they told investors about at least $40billion of collateralized debt obligations (CDO) that share similar profiles.    The allegations of … [Read more...]