Wednesday, 30 July 2014
Last updated 12 hours ago
Jul 13 2010 | 12:11pm ET
Goldman Sachs is expected to seek another extension in filing its reply to the Securities and Exchange Commission’s fraud lawsuit against it.
The New York-based firm, which is accused of misleading investors in a collateralized debt obligation it allegedly structured and marketed on behalf of hedge fund Paulson & Co., has already received on 30-day extension, and will likely seek a second, the New York Post reports. According to the SEC, Goldman did not tell the other investors in the CDO about Paulson’s involvement, nor that the hedge fund would be shorting the CDO through credit default swaps it bought from Goldman.
Paulson has not been accused of any wrongdoing. Goldman has denied the charges.
Currently, Goldman’s response is due on June 19. It is not clear why the firm plans to seek a second extension, although Goldman is reportedly eager to settle the case. Still, a top Goldman executive said last month that a deal with the SEC was not on the horizon.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…