Description:  The Securities and Exchange Commission on Friday charged Goldman Sachs Group Inc. and one of its vice presidents with defrauding investors by misstating and omitting key facts about a financial product related to subprime mortgages.

Source: Marketwatch.com
 
Date: 04/016/2010

Link: http://www.marketwatch.com/story/goldman-charged-with-fraud-over-paulson-cdo-trade-2010-04-16?pagenumber=1

Questions for discussion:

• Are there any explanations that can mitigate the damage done to the reputations of the firms involved?
• What effect do you think this publicity will have on other financial dealings between institutions?
• 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.