The Goldman Sachs Group, Inc. is a a global investment banking and securities firm which engages in investment banking, securities services, investment management and other financial services primarily with institutional clients. The company has been the issue in the business world as it faces allegations from the Securities and Exchange Commission (SEC) last week.
SEC filed a civil suit against Goldman, alleging that the New York City-based company allowed hedge fund Paulson & Co., who made billions of dollars betting against the U.S. mortgage market, to help select securities in a so-called collateralized debt obligation, or CDO. It further added that the company failed to tell investors that Paulson was betting that the value of the investment would decline. Investors in the security ultimately lost $1 billion.
As to the side of Goldman Sachs, it has firmly rejected many of the SEC’s claims. They are sticking to the fact that Paulson never had a hand in selecting the securities and that the other investors in the deal were never deceived in any way. “We would never intentionally mislead anyone,” said Greg Palm, Goldman’s co-general counsel.
The company has made it clear that it has every intention of fighting the government’s charges wherein they call it “unfounded”, adding that they planned to “vigorously contest” them.
As to where will these arguments be leading, it is still very vague.
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Goldman Sachs Facing Tough Questions of SEC | 