"US bank Goldman Sachs has agreed to pay $550m (£356m) to settle civil fraud charges of misleading investors. The US financial watchdog, the Securities and Exchange Commission (SEC), said this was the biggest fine against a bank in its history. It added that $250m would compensate investors, with the balance going to the US Treasury.
The charges concerned Goldman's marketing of mortgage investments as the US housing market faltered. The SEC said Goldman had acknowledged that marketing material contained "incomplete information".
Despite the record fine, Goldman shares rose by 4.5%, reflecting the fact that many analysts felt the firm got off lightly."They pay $550 million and they get an $800 million pop in their stock price... they got off easy," said Kevin Caron at Stifel, Nicolaus & Co. Goldman made a profit of $3.5bn in the first three months of this year."
http://www.bbc.co.uk/news/business-10656699
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Goldman Sachs settles fraud claims for record $ 550M
Started by Sexpat, Jul 16 2010 07:48 AM
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