SEC Charges Goldman With Fraud In Failed CDO

Law360, New York (April 16, 2010, 1:36 PM EDT) -- The U.S. Securities and Exchange Commission on Friday sued Goldman Sachs Group Inc., alleging the investment bank played both sides in creating a collateralized debt obligation made up of mortgage-backed securities that was designed to fail, reportedly costing investors well over $1 billion.

According to the complaint, filed in the U.S. District Court for the Southern District of New York, Goldman did not reveal to either investors or the company responsible for selecting the subprime mortgages for the synthetic CDO that hedge fund Paulson & Co....
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