Finally the SEC is going after Goldman Sachs and John Paulson for selling these mortgage bonds/securities. Paulson knew would fail just so they wouldn't have the liability for when they do, and Goldman Sachs agreed to sell them. The reason why they are getting a law suit against them for fraud is because they labeled these as good investments when they clearly weren't. Also Goldman Sachs didn't tell the investors that the hedge fund (Paulson) hand picked these horrible investments. The company is claiming they provided full disclosure, but come on...really? While Paulson got over $3 billion for this deal, Goldman lost money, which is another argument on their end. Even though the SEC is only filing for a civil suit, I hope Paulson gets what he deserves.
Here is an article from the LA Times on April 17 on the subject..
http://www.latimes.com/business/la-fi-goldman17-2010apr17,0,7190484.story (copy and paste because for some reason it's not letting me make it a direct link)
and here is also last night's Colbert Report on the subject..
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