Tuesday, 21 October 2014
Last updated 1 hour ago
Jul 15 2010 | 10:52am ET
Goldman Sachs has proposed settling the Securities and Exchange Commission’s fraud suit against it and several smaller probes of its mortgage department in one fell swoop.
The idea of a catch-all settlement originated with the Wall Street giant, which has long been reported to want the fraud charge to go away. According to the SEC, Goldman misled investors in a collateralized-debt obligation it allegedly structured and marketed on behalf of hedge fund Paulson & Co. The firm allegedly failed to disclose Paulson’s role in selecting the mortgage-backed securities that went into the CDO, called ABACUS-2007-AC1, or that the hedge fund planned to short the CDO.
A catch-all settlement would both reassure Goldman’s investors and prevent the release of information that could be used against the firm in future litigation, The Wall Street Journal reports. But there remain hurdles.
For one, the SEC is investigating three other Goldman CDOs for possible conflicts of interest. Those probes are all at different stages, with the SEC unsure of what each might uncover, making a settlement difficult.
Goldman is also loath to have the fraud charge stand, even if it uses the standard settlement procedure of neither admitting nor denying it. The firm wants the SEC to drop the fraud charge, which it believes could lead to an avalanche of lawsuits.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...