The timing of the Securities and Exchange Commission civil law suit against Goldman Sachs is curious at best and smells of dirty politics. Never mind the SEC will most likely not prevail ... As you start peeling away the layers of the onion on this, perhaps starting here is as good as any place:
(Reuters) - Paulson & Co, the hedge fund linked to civil fraud charges against Goldman Sachs Group Inc, moved to head off investor concerns about its role in a deal that has scarred the reputation of the Wall Street bank and overshadowed blow-out quarterly earnings.
Goldman is accused of defrauding investors by failing to say that prominent hedge fund manager John Paulson bet against a Goldman subprime debt product that he helped design.
Goldman is being investigated by the Securities and Exchange Commission (SEC) and Britain's market watchdog, which launched its own probe on Tuesday. Its shares are down 13 percent since the SEC laid its charges, and closed 2 percent lower on Tuesday despite thumping quarterly earnings expectations.
Goldman's troubles also caused political reverberations.
A top Republican congressman questioned whether politics affected the timing of the government's case, while in Britain, the Liberal Democrat party's leader said Goldman should be banned from UK government contracts until the case is settled.
Paulson, in a conference call on Monday and followed up with a letter to investors late on Tuesday, says neither he nor anyone else at the firm had received a so-called Wells notice indicating that charges might be filed against the fund, several investors who listened to the call said.
No one had yet notified the $32 billion fund of their intentions to pull money out, they said.
Read the entire article here: http://www.reuters.com/article/idUSTRE63K0C620100421?feedType=nl&feedName=usbeforethebell
Goldman is accused of defrauding investors by failing to say that prominent hedge fund manager John Paulson bet against a Goldman subprime debt product that he helped design.
Goldman is being investigated by the Securities and Exchange Commission (SEC) and Britain's market watchdog, which launched its own probe on Tuesday. Its shares are down 13 percent since the SEC laid its charges, and closed 2 percent lower on Tuesday despite thumping quarterly earnings expectations.
Goldman's troubles also caused political reverberations.
A top Republican congressman questioned whether politics affected the timing of the government's case, while in Britain, the Liberal Democrat party's leader said Goldman should be banned from UK government contracts until the case is settled.
Paulson, in a conference call on Monday and followed up with a letter to investors late on Tuesday, says neither he nor anyone else at the firm had received a so-called Wells notice indicating that charges might be filed against the fund, several investors who listened to the call said.
No one had yet notified the $32 billion fund of their intentions to pull money out, they said.
Read the entire article here: http://www.reuters.com/article/idUSTRE63K0C620100421?feedType=nl&feedName=usbeforethebell
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