Did Goldman Sachs Mislead Investors?
Last week the Securities and Exchange Commission filed a civil lawsuit against Goldman Sachs. The suit alleges the company, along with a high-ranking employee, of defrauding investors. Allegedly, the company omitted keys facts and made misstatements relating to subprime mortgages around the time the housing market bubble was bursting.
"Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party."
Allegedly, investors lost more then $1 billion dollars because of the deception.