Goldman Sachs handed record $550m fine over Abacus transaction

US regulators yesterday demonstrated their determination to crack down on Wall Street's excesses during the subprime mortgage crisis by handing Goldman Sachs a fine of $550m, and warning that "half truths and deception" would not be tolerated.

In the humiliating settlement with the Securities and Exchange Commission, Goldman accepted the largest fine in the commission's history and accepted that the marketing materials it issued to investors for the Abacus transaction at the heart of the regulator's case gave "incomplete information".

The commission made clear that despite the settlement, in which Goldman did not admit or deny the damaging allegations, Fabrice Tourre, the employee who had been involved in marketing the collateralised debt obligation (CDO), remained under investigation.

Read Full Article from The Guardian

- Posted: 2010-07-15 20:03:40

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