Description:Â 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.
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.