Friday seems to be worst and dark day of all in bank history, when entire world was shocked to know Goldman Sachs Group Inc who deals with banking investment and security services Goldman Sachs, the most powerful, most feared and most envied firm on Wall Street was reportedly found accused by U.S. Securities and Exchange Commission (SEC) over its marketing of a sub-prime mortgage product which defrauded investors in selling financial products. The whole fraud episode is considered to be mis marketing tactics concerning to mortgage securities.
Leading bloggers and many News papers was flooded with the news and pumped sharp reactions which rocked entire world thus to very worst example of fraud and crisis, which may be known with many definition like biggest investment fraud, Mortgage fraud, phonzi scheme, securities scam and what not. But central theme is Gold Sachs group is fraud charges SEC thus making strong rounds all over the world.
Highlights of Goldman Sachs Fraud
U. S Security and Exchange commission (SEC) in civil suit charged Goldman Sachs for misleading investors which attracts that bank designed and sold mortgage investment without anyone knowledge, thus failing to discover the key facts about investments to investors.
According to SEC Investors in Mortgage securities lost more than $1 billion.
Suit also confirms Fabrice Tourre, one of its presidents at Goldman who helped create and sell the investment called collateralized debt obligation (CDO) in 2007 which resulted country in heavy recession.
Gold Man gains More than $15 million from this fraud.
Gold Man Denies charges and says SEC’s charges are completely unfounded in law and fact and we will vigorously contest them and defend the firm and its reputation.”
Stock Market All over the world tumbles.
Robert Khuzami SEC’s director of the enforcement division termed product was new and complex but the deception and conflicts are old and simple.
Now the whole episode seems like its SEC v/s Goldman Sachs group. No matter, who will win but world will certainly suffer and that too innocent investors.
Soon After SEC sued Goldman Sachs Group Inc, the world stock market too suffered heavy drop as most of Asian markets (Japan, China, India) witnessed downfall in stock and commodities.