Securities Law Updates | New Releases/No Action Letters
August 4, 2010
Goldman Sachs to Pay Record $550 Million to Settle SEC Charges Related to Subprime Mortgage CDO
Securities and Exchange Commission v. Goldman, Sachs & Co. and Fabrice Tourre
Civil Action No. 10 Civ. 3229 (S.D.N.Y.); Release No. 21592, 7/15/2010
The Securities and Exchange Commission (“SEC,” or “Commission”) has announced that Goldman, Sachs & Co. will pay $550 million and reform its business practices to settle SEC charges that Goldman misled investors in a subprime mortgage product just as the U.S. housing market was starting to collapse.
In agreeing to the SEC’s largest-ever penalty paid by a Wall Street firm, Goldman also acknowledged that its marketing materials for the subprime product contained incomplete information.
In its April 16, 2010 complaint, the SEC alleged that Goldman misstated and omitted key facts regarding a synthetic collateralized debt obligation (CDO) it marketed that hinged…
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