Goldman Sachs Fraud

The Securities and Exchange Commission's insider-trading charges against Rajat Gupta, former head of consulting firm McKinsey & Co., comes as a shock to many. The news comes after another McKinsey director pleaded guilty to insider-trading charges in January. Should we expect more to come?

Goldman Sachs Group (GS) published details on how it earns its revenue as it works to deflect criticism that it puts its own profits ahead of client interests. The 63-page report, released today, breaks down its revenue to show how much comes from its own trading and investing, The Wall Street...

Goldman Sachs has been fined $650,000 by the Financial Industry Regulatory Authority for failing to properly disclose to regulators that two of its executives were going to be investigated by the Securities & Exchange Commission, FINRA announced Tuesday.

Goldman Sachs Group (GS) was sued by German bank Landesbank Baden-Wuerttemberg for allegedly mis-representing the credit quality of its mortgage-backed securities. The German bank ended up posting a $37 million loss on the investment. Sponsored Links Goldman was the placement agent for a...

In Friday's legal news, the timing of the SEC's suit against Goldman Sachs may have had more to do publicity than with advancing the Democrat's agenda; the delinquent Harrisburg Authority tries to make good on its debts; and the justice department wants to determine policy regarding gays in the military.

Axa (AXAHY), the largest investor in Goldman Sachs (GS), cut its stake by more than 50% in the second quarter as the bank dealt with civil fraud charges and flagging business. Axa, a French insurance and wealth management company, reduced its stake in Goldman from about 5% at the start of April...

In today's legal news a panel of judges decided that nearly 300 personal injury, economic loss and environmental claims against BP will be heard in New Orleans, considered a "friendly" court for the plaintiffs; a judge allows a convicted con man to avoid prison and play poker, so that he win money and pay back his victims.

In Tuesday's legal news, the Texas Attorney General has joined the long line of plaintiffs against BP, filing an environmental enforcement action over air pollution that spewed for 40 days from a BP refinery in Texas.

While Goldman Sachs has settled the SEC's fraud case against it, its dispute with the Financial Crisis Inquiry Commission is ongoing. Goldman says it's cooperating, but the FCIC is unconvinced: It's threatening the investment bank with an outside audit of its derivatives business.

Goldman's reputation may have taken a hit within the industry, but what gets most attention in the SEC settlement is the $550 million fine, which is usually dismissed as meaningless to Goldman. The injunction is similar -- potent in a normal world, but less so in Goldman's.