Judge OKs Goldman Settlement

Jul 21 2010 | 11:59am ET

A federal judge has given her approval to Goldman Sachs’ $550 million settlement of charges it misled investors in a collateralized debt obligation allegedly structured and marketed on behalf of hedge fund Paulson & Co.

U.S. District Judge Barbara Jones in New York gave her final approval to the Securities and Exchange Commission settlement announced last week. Goldman did not admit or deny any wrongdoing, but did acknowledge that the CDO’s marketing material “contained incomplete information.”

The information that the SEC said was lacking was that Paulson had played a role in selecting the securities that went into the CDO, called ABACUS-2007-AC1, and that the hedge fund planned to short the CDO through credit default swaps it bought from Goldman.

Paulson has not been charged with any wrongdoing.

The SEC is still pursuing its case against Fabrice Tourre, the Goldman executive who handled the CDO transaction. Tourre on Monday filed his response to the charges, denying any wrongdoing.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of