NEWS JUNKIE POST
Jun 1, 2010 at 6:43 pmSEC May Let Goldman Sachs Off The Hook With $621 Million Fine
The Securities and Exchange Commission may let Goldman Sachs walk free by slapping it with a $621 million fine, according to bank analysts. On April 16, Goldman Sachs faced charges of fraud after the SEC found that its vice president, Fabrice Tourre, had tricked investors into buying mortgage assets that would go sour.
The Goldman Sachs’ scheme known as “Abacus,” cost investors $1 billion in losses at the peak of the sub prime mortgage crisis.
An article on Bloomberg quoted Brad Hintz, a banking analyst for the Bernstein Research Group, about the SEC investigation.
“Certainly Goldman wants this case settled,” said Hintz. “Its management has stated that it wants a ’normal’ relationship with its regulators.”
Goldman is trying to reach a settlement in order to avoid facing the courts. According to the Financial Times:
…people familiar with the SEC’s thinking believe the bank’s bargaining position is itself weak since Goldman wants to limit the damage to its reputation and share price by settling the case quickly.
The $621 million fine would be split between the SEC and the investors, with $250 million going to the regulator and $371 million to investors.
Goldman has only 60 days from the date the SEC pressed charges to reach a settlement or file a defense. “If the case goes to court, the SEC is likely to press for it to be heard by a jury,” the Financial Times reports.
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yeah! this story has entered the popular today section on popurls.com…
ROTFL, its always about the Money, throw some money at it to make it go away, just like BP is going to do with this ridiculous “Criminal” investigation. Its all about the money. What a joke.
Lou
http://www.anon-posting.at.tc
this is ri-god-damn-diculous. how is it that they put the fine at LESS than what they STOLE?
and how about when you break the law, you go to court?!
finally… how is it that what the company wants is factored in to what the regulators do at all? too effin’ bad! you broke the law so yeah your company’s reputation is going to suffer as well it should.
oh american government, you are cause for outrage.
That’s pretty cheap for fraud! Pity small time crooks who have to do time…
The fine still leaves GS with a profit of at least 1/3 of a billion dollars on their malfeasance — what kind of deterrent is that? Hit them with something a little more realistic. A sum equal to last years profit and executive bonuses would definitely motivate them to be more honest.
So after screwing up the livelihood of millions of Americans and all over the world. They get a fine for $621 Million which is is basically what they make in one week. What about this idea? We take over their company and sell to the highest bidder and give to all those who have gone through hell because of them. I think that is a great fine. What do you think?