Home > Uncategorized > Goldman Settlement `Victory\’ Ushers Change to Wall Street – Bloomberg

Goldman Settlement `Victory\’ Ushers Change to Wall Street – Bloomberg

[Enforcement is more important than new regulation.  For instance, is this proportionally small fine much of a deterrent? -JR]

Goldman Sachs Group Inc.’s $550 million settlement with U.S. regulators yesterday will benefit the firm by ending three months of uncertainty at an affordable price. Now the rest of Wall Street begins calculating the cost…

The company won key points: The cost was below some analysts’ estimates of at least $1 billion; no management changes were required; and Goldman Sachs said the SEC indicated it doesn’t plan claims related to other mortgage- linked securities it examined. The stock’s late surge on anticipation of a settlement yesterday added more than $3 billion to the company’s market value, and it climbed further after New York trading closed…

Goldman Sachs acknowledged that marketing materials for the 2007 deal at the center of the case contained “incomplete information.” In its April 16 suit, the SEC accused the firm of defrauding investors in a mortgage-backed collateralized debt obligation by failing to tell them that hedge fund Paulson & Co., which was planning to bet against the deal, had helped to design it.

via Goldman Settlement `Victory\’ Ushers Change to Wall Street – Bloomberg.

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