goldman sachs fraud

Trading Lloyd Blankfein for an SEC Settlement?

A rising number of investment pros now predict that Goldman will push hard to settle the securities fraud case -- with the ouster of Chairman and CEO Lloyd Blankfein possibly thrown into the deal. They argue that the firm may go that route to end the agony it's now mired in.

What Does Wall Street Owe Its Clients? Not Much

With one small exception, Wall Street doesn't legally owe a duty to its clients to act in their best interests. It's only when clients ask for financial advice that banks owe a fiduciary duty them -- and these activities contribute a tiny portion of banks' revenue.

Legal Briefing: FCC Won't Force Broadband Competition

In order to enforce net neutrality rules, the FCC is reclassifying ISPs into the same category as phone companies. Now, the agency has the authority to drastically improve broadband competition -- but it won't.

Big Banks Could Be Heroes in the Greek Debt Crisis

Amid the turmoil of Europe's Greek debt crisis, investors may find an unlikely source of relief. Big private banks are playing a more supportive and decisive role, providing solutions that sidestep the political gridlock.

Senate Set to Begin Voting on Financial Reform Bill

The Senate will begin voting on amendments to the financial reform bill Tuesday. The bill would create a new consumer protection watchdog within the Federal Reserve; increase bank supervision; and end "too big to fail" bailouts.

Is Goldman Sachs a $500 Stock?

Some government officials are trying to make Goldman Sachs (GS) the scapegoat for the financial crisis, and the stream of bad news about the company is driving down its stock price. Does that make it a buy? If my calculations are right, Goldman at $125 could be a four-bagger.

Legal Briefing: FBI Won't Let Massey Slide on Bribery

If there's any truth to the rumors that Massey Energy bribed coal mine inspectors, a confluence of powerful forces makes it a near certainty that we'll see wrongdoers get convicted, government get cleaner, and miners get safer.

Buffett on His Goldman Bet: 'I'd Absolutely Do It Again'

At Berkshire Hathaway's annual meeting, DailyFinance asked the Oracle of Omaha if he would make the same decision investing in Goldman Sachs in light of how the bank's reputation has suffered recently. Find out why Buffett says, "It's a great investment."

Goldman Shares Tumble As Image Takes Another Hit

Shares of Goldman Sachs got hammered on Friday as Wall Street finally woke up to the enormous reputational damage done to the franchise. This comes following reports that a criminal investigation was being considered.

Goldman's Stock Tumbles and Gets Its First Sell Rating

The fallout from a Senate panel grilling of top Goldman Sachs executives last Tuesday is starting to jell: S&P advised its clients on Friday morning to dump the stock. It's the first sign that Wall Street is starting to take note that the roof could fall in at Goldman.

Legal Briefing: Did Novartis Punish a Rape Victim?

Among the most startling pieces of testimony in the Novartis sex discrimination trial was an account of woman's rape by a man connected to her boss. More shocking was the company's alleged response. Even in a case the law says must be decided on dry statistics, such devastatingly emotional testimony is likely to color the verdict.

Goldman May Now Face Criminal Probe

Stepping up the pressure on Goldman Sachs two days after its executives were grilled and publicly rebuked by lawmakers, the Justice Department has opened a criminal investigation of the Wall Street powerhouse over mortgage securities deals it arranged.

Did Lloyd Blankfein Cost His Alma Mater $100 Million?

Goldman Sachs (GS) CEO Lloyd Blankfein loves to recount how he rose up from the mean streets of Brooklyn and won a scholarship to Harvard College and then on to its law school. But Blankfein turned around and bit the hand that fed him, to the tune of $500 million when, in February 2007, Harvard found itself on the wrong side of a synthetic CDO bet with Goldman.

Organized Labor Puts a Bull's-Eye on Wall Street

Activists are expecting 10,000 people to vent their rage Thursday against the giants of the financial system from Wall Street itself, while another 8,000 will participate virtually. Smaller demonstrations have already taken place elsewhere, and more are expected around the country.

The Goldman Bulls Are Hanging Tough

None of the 29 Wall Street analysts who track Goldman Sachs recommend selling the stock. In fact, 22 continue to rate it a buy, and seven others peg it a hold, or neutral. Clearly, the harsh light thrown onto Goldman hasn't fazed the analysts. But does that make it a buy?

Goldman CEO Says Firm Acted in Clients' Best Interests

Goldman Sachs CEO Lloyd Blankfein and Senator Carl Levin sparred Tuesday over whether market makers have a duty to disclose to clients whether the company was taking short positions on securities it sold to its customers. Where Levin sees gambling for huge profits, Blankfein sees prudent hedging against risk.

The Impact of the Tourre Panel on the SEC Goldman Case

The Securities and Exchange Commission got some gifts from today's grilling Fabrice Tourre. Most important for the SEC is that everything he said was under oath. Now he's locked into his positions, and he made some pretty sweeping statements. If the SEC can find documents or witnesses that contradict today's testimony, the SEC gains a powerful lever in its case against Goldman Sachs.

Goldman Sachs: The Stupidist Trade Ever

Gregory Zuckerman's book The Greatest Trade Ever: The Behind-the-Scenes Story of How John Paulson Defied Wall Street and Made Financial History offers some valuable insights into hedge-fund operator John Paulson -- the mastermind behind the trade that has brought a massive SEC investigation upon the house of Goldman.

Goldman's Fabrice Tourre Sticks to the Script

For a star witness, Fabrice "the Fabulous Fab" Tourre had more of a supporting role in Tuesday's Senate hearing into Goldman Sachs's contributions to the subprime mortgage disaster. He largely stayed on message and let other executives do the talking.

Legal Briefing: Schwab Settles Suit for 25 on the Dollar

While Goldman Sachs allegedly defrauded Wall Street's elite, it was Main Street investors who were duped by Charles Schwab. Schwab put more than $700 million of its clients' money in what it said was a "conservative" fund, but was really a high-risk bet on mortgage-backed securities.

Goldman at the Poker Table: Two Points Blankfein Must Make on Synthetic CDOs

As Senator Carl Levin of the Senate Permanent Subcommittee on Investigations grills Goldman Sachs executives Tuesday, Goldman CEO Lloyd Blankfein must find a way to explain synthetic CDOs and other complex mortgage bets. He could help his case enormously by describing synthetic CDOs in simple terms and arguing forcefully that as a broker running such deals, it fulfilled its duty to participants.

Goldman's Blankfein: 'We Certainly Did Not Bet Against Our Clients'

In testimony before a Senate subcommittee Tuesday, Goldman Sachs CEO Lloyd Blankfein will defend his firm against SEC charges of fraud involving mortgage-backed securities. Goldman "didn't have a massive short against the housing market and we certainly did not bet against our clients," said Blankfein.

Fabrice Tourre's Tough Moment in the Sun

Testifying with several former and current Goldman executives, the young trader is offering a vehement rejection of the charges against him and his firm. "I deny -- categorically -- the SEC's allegation." The SEC's lawyers will be listening closely.

Goldman Execs Set to Face Congress

The CEO of Goldman Sachs and other executives from the Wall Street powerhouse are coming before Congress 10 days after the government accused the firm of fraud. The Senate panel hearing their testimony Tuesday alleges that Goldman used a strategy that allowed it to profit from the housing meltdown and reap billions at the expense of clients.

Senator Levin: Goldman Bet Against Its Own Securities

Despite denials from Goldman Sachs, Senator Carl Levin says that evidence gathered by a Senate subcommittee shows that the company was making short-sale bets against the mortgage-backed securities Goldman sold to investors in 2006 and 2007.

Behind the $4 Trillion in CDOs: Sneaky Banks and Worthless Ratings

CDOs were a way for investment banks to evade their capital requirements, just as asset-backed securities played a similar role for savings and loan institutions in the 1980s. This time around the banks had plenty of help, especially from fee-hungry credit agencies.