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Goldman to pay $550M to settle fraud charges

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posted on Jul, 15 2010 @ 08:08 PM
Goldman to pay $550M to settle fraud charges.

The deal calls for Goldman to pay the Securities and Exchange Commission fines of $300 million. The rest of the money will go to compensate those who lost money on their investments.[/


The settlement amounts to less than 5 percent of Goldman's 2009 net income of $12.2 billion after payment of dividends to preferred shareholders — or a little more than two weeks of net income.

and finally

The securities cost investors close to $1 billion while helping Goldman client Paulson & Co. capitalize on the housing bust, the SEC said in the charges filed on April 16.

So the cost of Goldmans actions is $1 billion, they are fined just over half of that, and 60% of the fine goes to the SEC, not investors.

And we thought the system was broke!! (sarcasm added.)

[edit on 15-7-2010 by Oaktree]

posted on Jul, 15 2010 @ 08:14 PM
In any other case, wouldn't there be reimbursement ($1 billion) as well as punitive damages awarded?

This basically leaves roughly $700 million unaccounted for, a void in our economy, so to speak.

posted on Jul, 15 2010 @ 08:37 PM
A misdirection, limited hangout here, as I see it. They'll probably manage to write-off the loss on this year's taxes (assuming they pay any).

I wonder how this will affect individual employees of GS..., perhaps one less man-servant at one of the vacation homes?

It seems GS stock has risen on the news, maybe this legal monetary-confiscation is really just another profitable investment after all.

Word that Goldman had settled began leaking about a half hour before the market closed on Thursday and appeared to please investors. Goldman had been trading at about $140 a share. The stock rose to close at $145.22, up $6.16, and shot up to $153.60 in after-hours trading.

Please visit the link provided for the complete story.

[edit on 15-7-2010 by FewWorldOrder]

posted on Jul, 15 2010 @ 08:48 PM
reply to post by FewWorldOrder

My guess is a bit more sinister.

Goldman allowed the SEC to pass the Wall Street reform in exchange for this slap on the wrist.

And $300 million into the coffers of a Gov. agency Goldman controls anyway.

It's a joke.

posted on Jul, 15 2010 @ 08:59 PM
reply to post by Oaktree

From 2009:

Former Goldman Sachs Exec Named SEC Enforcement Division COO

I agree, it's all a show.

posted on Jul, 15 2010 @ 09:05 PM
reply to post by FewWorldOrder

From your article:

Adam Storch, a 29-year-old former Goldman Sachs manager, joined the SEC staff Tuesday


Since 2004, Storch had worked in a Goldman Sachs unit that "reveiwed contracts and transactions for signs of fraud," the story says.

Freakin' lovely, just lovely!

posted on Jul, 15 2010 @ 09:57 PM
Goldman Sach's plundered billions in the progress of bankrupting the global economy, and gets off with a $550 million dent in their bottom line. And top of it all... their stocks price went up!

And from the sounds of it they only got charged with how they marketed their subprime trickery, not even more daunting things like hacking the global stock market using advanced AI supercomputers.

posted on Jul, 15 2010 @ 10:22 PM
reply to post by IgnoranceIsntBlisss

Oh please, please!
We all know that was just a "glitch" in the software!
How do we know?
That's what they told us!

Besides, the SEC is looking into the matter anyhow, right?
Depends who you ask.

John Thain, head of the New York Stock Exchange, told CNBC’s Bob Pisani that there is no investigation by the Securities and Exchange Commission of trading problems at the the Big Board during Tuesday’s market selloff.

The comment, which Pisani mentioned on air, appeared to contradict a Wall Street Journal report earlier Thursday that the SEC is looking into whether the NYSE’s shift toward electronic trading affected its ability to handle a surge in trading volume.

From March 2nd:

The New York Stock Exchange (NYSE) suffered further embarrassment yesterday after the US Securities and Exchange Commission confirmed that it would investigate the circumstances around the bourse’s technology meltdown.

It would appear the investigation has gone nowhere, as the SEC's website makes no mention of this as an ongoing investigation.

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