The Securities and Exchange Commission on Friday charged Goldman Sachs Group Inc. with defrauding investors, alleging that Goldman let a big hedge fund fill a financial product with risky subprime mortgages and then failed to disclose that to the product’s buyers.

The SEC said in the civil complaint that Goldman and Fabrice Tourre, then vice president, created and sold opaque collateralized-debt obligations, or CDOs, that hinged on the performance of subprime-mortgage-backed securities.

Related Posts:

• NRO: Federal Obligations Per Household Up 12%, Reach a Record $546,668 per Household
• Federal Reserve Bank of Cleveland: Ten Myths about Subprime Mortgages
• Goldman’s Quarter-Trillion-Dollar Cushion
• WSJ on foreclosures: Zero money down, not subprime loans, led to the mortgage meltdown.
• Don’t Fear A Housing Dip – John Tamny

This entry was posted on Friday, April 16th, 2010 at 2:39 pm and is filed under National. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.