SEC settles with Goldman Sachs
(16 July 2010 –USA) Goldman Sachs has agreed to settle with the Securities and Exchange Commission for US$550 million (A$625 million) without admitting or denying allegations of fraud brought against the investment bank.
The bank and one of its traders, Fabrice Tourre, was accused of misleading investors in a subprime mortgage scandal three months ago.
The lawsuit has brought the investment bank, the firm’s executives and chief executive Lloyd Blankfein under intense scrutiny.
Mr Blankfein has told lawmakers that the investment bank didn't make bets against clients and has endured speculation about his future leading the firm.
Goldman has agreed to settle the charges without admitting or denying the allegations 'by consenting to the entry of a final judgement that provides for a permanent injunction from violations of the antifraud provisions of the Securities Act of 1933,' according to the SEC's release.
Prior to the release SEC said that its Enforcement Division would be holding a news conference at 4:45 p.m. ET to make a significant announcement.'
Attending would be Enforcement Director Robert Khuzami in the regulators' headquarters in Washington, D.C.
In a statement the investment bank said the settlement 'is the right outcome for our firm, our shareholders and our clients.'
The firm also said that SEC had completed a review of other collateralised debt obligations created by Goldman and does not anticipate recommending any claims against Goldman Sachs or any of its employees with respect to those transactions based on the materials it has reviewed.
The lawsuit has brought the investment bank, the firm’s executives and chief executive Lloyd Blankfein under intense scrutiny.
Mr Blankfein has told lawmakers that the investment bank didn't make bets against clients and has endured speculation about his future leading the firm.
Goldman has agreed to settle the charges without admitting or denying the allegations 'by consenting to the entry of a final judgement that provides for a permanent injunction from violations of the antifraud provisions of the Securities Act of 1933,' according to the SEC's release.
Prior to the release SEC said that its Enforcement Division would be holding a news conference at 4:45 p.m. ET to make a significant announcement.'
Attending would be Enforcement Director Robert Khuzami in the regulators' headquarters in Washington, D.C.
In a statement the investment bank said the settlement 'is the right outcome for our firm, our shareholders and our clients.'
The firm also said that SEC had completed a review of other collateralised debt obligations created by Goldman and does not anticipate recommending any claims against Goldman Sachs or any of its employees with respect to those transactions based on the materials it has reviewed.
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