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 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.
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.
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.
After eyeballing the firm's revealing second-quarter results, maybe investors should start getting used to the idea that Goldman Sachs will no longer be the invincible Wall Street powerhouse it has been all these many years.
The Securities and Exchange Commission's inspector general, H. David Kotz, says he's expanding his investigation into the agency's lawsuit against Goldman Sachs to include the timing of the settlement, which came the same day as financial reform approval.
Formula Capital's James Altucher says that there has never been a better time to pick up high-quality stocks at bargain prices -- as long as you choose the right ones. Altucher recommends three "beaten over the head with a bat" stocks he expects will double in the next one to two years.
Now that credit rating agencies can be sued for issuing inflated ratings, they're refusing to allow their ratings to be used to sell bonds. Unfortunately, since some types of bonds are required to have such ratings, those parts of the bond market are shutting down.
Former newspaper mogul Conrad Black will get out of jail on bail as he appeals his conviction for defrauding shareholders based on the now-narrowed "honest services" statute. The bail order comes even though Black was also convicted of an obstruction of justice charge.
The SEC's commissioners were split over the decision to settle fraud charges with investment bank Goldman Sachs. Observers say the SEC probably had some doubts about the strength of its case.
It's hard to say who will get the best of the settlement between Goldman Sachs and the Securities and Exchange Commission. Some provisions may have major, negative impacts for Goldman in the future. However, in the short run, and in the court of public opinion, Goldman clearly wins. Here's why.
The $550 million SEC settlement is just 8.9% of the $6.2 billion jump in Goldman's market value on the day the deal was announced. And it's an even smaller portion of the backdoor, taxpayer-funded bailout Goldman was handed in 2008.
Goldman Sachs shares have jumped some 4.7% in pre-market trading to around $152 following the announcement of an agreement with the SEC to pay a record $550 million settlement over fraud claims linked to the subprime mortgage investment known as Abacus.
The Securities and Exchange Commission reached a record $550 million settlement with investment banking firm Goldman Sachs over fraud claims linked to subprime mortgage investments. Goldman stock surged in late afternoon trading.
Goldman Sachs is pushing for a global settlement with the Securities and Exchange Commission, reports The Wall Street Journal, which is why it's again expected to ask for a delay in answering the SEC's fraud charges.
Some companies don't realize how important their image is until it's gone. A new survey of corporate directors shows that reputation may account for 70% of a company's value.
Goldman Sachs was due to answer the Securities and Exchange Commission's fraud charges today. Instead, the investment bank just filed an agreement with the SEC giving Goldman until July 19 to answer.
As Goldman gets tangled in more lawsuits and probes, it's looking increasingly like Salomon Brothers in 1991, when top executives resigned in disgrace and Buffett assumed command. Indeed, parallels between the firms are eerily similar.
Lawyers have already exploited Facebook to help win in divorce cases, investigate potential jurors, and market themselves. Now, a California judge has ruled on when parties can subpoena Facebook data in a civil suit, and yes, your privacy settings are the key factor.
The Financial Crisis Inquiry Commission's subpoena of Goldman Sachs for documents has thrust the beleaguered firm back in the spotlight. And now even a bullish top analyst is calling for CEO Blankfein to be replaced.
Rumors of a settlement between the SEC and Goldman Sachs are overblown, at least for now. CNBC reports Goldman is preparing a detailed answer to the SEC's complaint, and it will actively pursue discovery. Until Goldman sees what the SEC has against it, this fraud case will go on.
In the largest sex discrimination case ever to go to a jury, it took jurors only a week to find Novartis Pharmaceuticals guilty of discriminating against 5,600 female sales representatives. Compensatory and punitive damages could run to the hundreds of millions of dollars.
In this climate, any banker in his right mind will think twice before taking more than the usual share of risk. And generally, low risk equals low profits. Plus, financial reform could cut off some of Wall Street's most lucrative income streams.
