Home » Business » Investment Banking » SEC Charges Goldman Sachs with Fraud

SEC Charges Goldman Sachs with Fraud

The USA Securities and Exchange Commission (SEC) has charged Goldman Sachs Group Inc with fraud today, for the structuring and marketing of sub-prime debt products.

The SEC makes allegations that Goldman Sachs withheld information about the nature of a CDO, called ABACUS. 99% of this CDO, within just 9 months of being structured by Sachs, was downgraded, costing invesors over $1 billion.

Fabrice Tourre, the Goldman Sachs vice president responsible for ABACUS has been charged with fraud by the SEC.

The bank lost over 10% of its share value in this morning’s trading on Wall Street, dropping nearly $20 per share to $164.88.

About Business Desk

Business Desk
Editors and staff from the Business Desk at The Global Herald.

Check Also

Trump hints trust in Merkel may not last

President-elect Donald Trump hints his trust in Germany’s Chancellor Angela Merkel “may not last,” because …

Leave a Reply

Your email address will not be published. Required fields are marked *