The FT is reporting that Goldie is on the verge of 9 figure settlement with the SEC:
“Goldman Sachs is hoping to avoid the Securities and Exchange Commission’s charge of fraud by reaching a settlement on a lesser offence and agreeing to a fine of hundreds of millions of dollars, according to people familiar with the bank’s negotiating position.
Goldman, which has been accused of civil fraud over a complex mortgage-related security called Abacus, is trying to focus settlement talks with the SEC on the less serious charge of omitting or mis-stating material facts to investors . . . Goldman might pay a fine of $250m and compensate investors by buying out their exposure to the Abacus deal at a cost of $370m”
Forget the settlement, I want to know this: Who was the dipshit lawyer that advised Goldman Sachs to fight this tooth and nail? Was it some executive who simply charged ahead, Dick Fuld style? I’d like to know who totally failed to anticipate the political climate, the public reaction, the prosecutors attitude, and myriad factors that has turned this into a giant disaster. Even if GS were to prevail in court, they have already lost. The reputational damage is already measured in $ billions, and will last years if not decades.
There had to be some decision-making in response to the SEC Wells notice nearly a year ago. The question investors should be asking is: Who is to blame? Who said no to a small settlement and minimal publicity? Who turned an otherwise routine SEC investigation into a giant clusterfuck?
I want names people, names!
And I also want to know: When does that stupid sonuvabitch get fired?
Goldman seeks settlement with SEC
John Gapper and Francesco Guerrera
FT, May 28 2010 00:11