Goldman Sachs fights fraud
The SEC charged Goldman Sachs with fraud last week. They said the firm misled investors on a collateralized debt obligation. Goldman Sachs allegedly failed to disclose that Paulson & Co, a hedge fund, helped select loans and then bet against them.
Fabrice Tourre, the only individual named in the SEC’s case has agreed to testify and defend his actions at the Senate hearing. Goldman Sachs will not go down without a fight. The firm is contesting the claims. The CEO of Goldman Sachs, Lloyd Blankfein, also intends to speak publicly about the firm. He says the company has nothing to hide, and he intends to prove it.