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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.

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

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