Goldman Sachs is being accused of securities fraud by the S.E.C. for selling an investment product that was secretely designed to fail. For anyone following the debate on how to sanitize the U.S. finiancial system this is a very interesting and exciting news.
See here for the Bloomberg report. And here for the New York times story. No big surprise that markets reacted badly.
I’m curious to see if this will begin a bear run or not. The SEC must be confident that its evidence is incontrovertable as they must have known that stocks would take a hit. So be it. No doubt 10 million unemployed Americans are chearing tonight as they cash in their foodstamps for yet another candlelit KD dinner.