Description:Â From July 2004 through April 2007, as credit markets boomed, Goldman Sachs Group Inc. created 23 financial transactions called Abacus, the word for a relatively crude counting tool involving the shuffling of beads. Yesterday, the Securities and Exchange Commission sued the bank for securities fraud in what would be the penultimate offering in the series, according to Bloomberg data.
Questions for discussion:
- What can be learned from this article about the concept of risk management?
- Do you believe the SEC is serious about pursuing legal action against Wall Street firms? Explain why or why not.
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