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SEC Fraud Suit May Tarnish Goldman's Rep
Monday, April 19, 2010
Goldman Sachs' civil fraud suit could mean plenty of trouble down the road for the big bank.
The Securities and Exchange Commission filed a suit against Goldman on Friday, saying that it sold risky mortgage investments without disclosing that the securities were crafted in part by a hedge fund manager who was betting they would fail, according to The Associated Press. Goldman has denied the SEC's allegations.
The AP reports that Goldman stands to lose $700 million in the case. If Goldman does win, analysts say the big Wall Street bank still may not be able to shake the charges in an industry based largely on trust.
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