S.E.C. Sues Goldman Over Housing Market Deal - NYTimes.com - The Diigo Meta page

• 03 Aug 10
  

  Joe Adams

  SEC Goldman Sachs corporate irresponsibility corporations corporate personhood banks financial crisis housing crisis CEO international business

• 19 Apr 10
  

  Byunghoon Lee

  SEC 골드만 삭스 서브프라임

  • the first time that regulators had taken action against a Wall Street deal that helped investors capitalize on the collapse of the housing market.
  • Abacus 2007-AC1
  • 3 more annotation(s)...
  • • initially protected Goldman from losses when the mortgage market disintegrated and later yielded profits for the bank.
    • a prominent hedge fund manager made money from his bets against certain mortgage bonds, while investors lost more than $1 billion.
    • Goldman was one of many Wall Street firms that created complex mortgage securities — known as synthetic collateralized debt obligations — as the housing wave was cresting. At the time, traders like Mr. Paulson, as well as those within Goldman, were looking for ways to bet against the overheated market.
• 18 Apr 10
  

  Lisa Klein

  goldmansachs SEC

• 17 Apr 10
  

  Nick Doherty
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  N Samuel
• 16 Apr 10
  

  JF B
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  Ape Con Myth

  econ_dev

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  Richard Delaney

  banks mortgage Goldman fraud civil

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  Guillaume Marceau

  finally

  politics

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  Fernando Marsan
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  Mark

  Goldman_Sachs The_New_York_Times Financial_crisis

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  ceCPxgHVrU

  Economy Goldman Sachs

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  George Hesseling
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  Nia Lourekas

  In a civil suit filed Friday, the S.E.C. accused the investment bank of securities fraud over a deal in which Goldman profited from bets against products it sold to customers.

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  Robert Stillman

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  gthaberlach

  Goldman let Mr. Paulson select mortgage bonds that he wanted to bet against — the ones he believed were most likely to lose value — and packaged those bonds into Abacus 2007-AC1, according to the S.E.C. complaint. Goldman then sold the Abacus deal to investors like foreign banks, pension funds, insurance companies and other hedge funds.
  
  But the deck was stacked against the Abacus investors, the complaint contends, because the investment was filled with bonds chosen by Mr. Paulson as likely to default. Goldman told investors in Abacus marketing materials reviewed by The Times that the bonds would be chosen by an independent manager.
  
  “The product was new and complex, but the deception and conflicts are old and simple,” Robert Khuzami, the director of the S.E.C.’s division of enforcement, said in a statement. “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.”

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