Courtesy of ABC News, abcnews.com and The Washington Post:
On Friday, the SEC brought charges of Fraud against Wall Street Power Investment Banking Company Goldman Sachs.
Who is Goldman Sachs?
Goldman Sachs Group, Inc. is a global investment banking and securities firm which engages in investment banking, securities services, investment management and other financial services primarily with institutional clients, which includes corporations and high net worth individuals around the world. They are a heavy hitter on Wall Street! Two former employees, Robert Rubin and Henry Paulson went on to serve as the United States Secretary of the Treasury after leaving the firm.
Goldman Sachs has been involved in several controversies in recent years, but last Friday, the high profile investment banking company was charged with Fraud by the Securities Exchange Commission.
The SEC is charging that Goldman Sachs misrepresented investors, more specifically that a third party, Paulson & Company (who was supposed to be looking out for investors), deliberately inserted mortgages into an investment package that it knew were very likely to default so that it could make money . Subsequently, purchasers of the security lost approximately one billion dollars while Paulson & Company profited one billion dollars (it is being reported that Goldman Sachs was paid a fee of $15 million in the deal).
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