Saturday, 28 November 2015
Last updated 21 hours ago
Jun 11 2010 | 11:47am ET
It’s apparently not a good time to be a negotiator for Goldman Sachs.
A top executive at the Wall Street giant said that no settlement of the Securities and Exchange Commission’s fraud lawsuit is near, just days after talks between the firm and an aggrieved hedge fund about another collateralized debt obligation broke down.
That hedge fund, Australia’s Basis Capital Management, turned around and sued Goldman for $1 billion.
Speaking today in Montréal, Goldman President Gary Cohn said there was no end in sight to the SEC case, which accuses Goldman of misleading investors in a CDO allegedly structured and marketed on behalf of hedge fund Paulson & Co.
“There’s no indications of anything at this point,” he said.
No indications of anything except, of course, a deeper look into Goldman’s CDO practices. The SEC is reportedly probing another deal—separate from both the Basis CDO and Paulson CDO—from 2006 in which Goldman was the only investor to buy credit protection.
“I read about it in the newspaper this morning, like you did,” Cohn said of the new probe.
Goldman is said to be eager to settle the SEC charges, which have dragged down its stock price. But the firm is loathe to accept a fraud charge, and wants the regulator to drop that allegation.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…