this is a Fantastic story..ie movie. John Paulson duped these assholes, pushed his rotten securities into the cdo, then shorted the same stuff, he told them was good. He even told a few of the GS tribe, that was his intention. He then made about a billion dollars. haaaaaaaa

Totally missed the Madoffs even with a roadmap, so they have to do SOMETHING about CDOs.

Why do you hate America?

I'm SHOCKED...SHOCKED I tell you that a fine upstanding company like Goldman Sachs woould be involved in any financial shenanigans.
Afer all, arent' they the company that has provided virtually ALL the regualtors of the past few decades.
It is obvious that their first and foremost care is for the health of the American economy.

After all, would GS alumni likr Robert Rubin, Henry Paulson, Robert Fowler, Jon Corzine ever put personal financial interests above that of the nation?

Like I said...SHOCKED!

Is NOTHING sacred?

What's next, hedge fund managers who don't have their clients' interest at heart. I don't think I could bear that.

SEC charges Goldman Sachs with fraud on CDO's tied to subprime mortgages

By The Star-Ledger Continuous News Desk
April 16, 2010, 11:26AM


The Goldman Sachs Tower, the tallest in New Jersey, has 42 floors and is located in Jersey City on the Hudson River, photo taken November 28, 2007.

The Securities and Exchange Commission charged Goldman Sachs and one of its vice presidents for defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages as the U.S. housing market was beginning to falter.

The SEC alleges that Goldman structured and marketed a synthetic collateralized debt obligation, called a CDO, that hinged on the performance of subprime residential mortgage-backed securities. Goldman failed to disclose to investors vital information about the CDO, in particular the role that a major hedge fund played in the portfolio selection process and the fact that the hedge fund had taken a short position against the CDO, said the SEC in a press release.

"The product was new and complex but the deception and conflicts are old and simple," said Robert Khuzami, Director of the Division of Enforcement. "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."