Goldman Sachs To Cough Up $550M In SEC Settlement

Posted by Orb Staff on July 16, 2010 No Comments
Categories : Residential Mortgage

curities and Exchange Commission (SEC) has [link=http://www.sec.gov/news/press/2010/2010-123.htm]announced[/link] that Goldman, Sachs & Co. will pay $550 million and reform its business practices to settle SEC charges that Goldman misled investors in a subprime mortgage product just as the U.S. housing market was starting to collapse. In agreeing to the SEC's largest-ever penalty paid by a Wall Street firm, Goldman also acknowledged that its marketing materials for the subprime product contained incomplete information. ‘Half a billion dollars is the largest penalty ever assessed against a financial services firm in the history of the SEC,’ said Robert Khuzami, Director of the SEC's Division of Enforcement. ‘This settlement is a stark lesson to Wall Street firms that no product is too complex, and no investor too sophisticated, to avoid a heavy price if a firm violates the fundamental principles of honest treatment and fair dealing.’ SOUR

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