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

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...

 

From the current issue of