Goldman Sachs executive Fabrice Tourre has denied acting improperly in regard to the controversial Abacus collateralized debt obligation (CDO) product.Fabrice TourreLast week, the bank agreed to pay out $550 million after the Securities and Exchange Commission (SEC) accused it of misleading investors by not informing them that hedge fund Paulson & Co – which helped make the CDO – was betting on its failure.The SEC said it would continue its case against Mr Tourre, who is said to have helped design the product.But lawyers acting on his behalf have questioned for the civil fraud charges against him to be dropped, reports Reuters.”The purported claims against Mr Tourre are based solely on alleged actions and omissions concerning information known to many different Goldman Sachs employees working in various aspects of its business,” his legal team said.Goldman Sachs has not admitted or denied the SEC’s claims, but did state that it regrets that marketing materials for the CDO did not tell Paulson’s involvement.
Posts Tagged ‘Goldman Sachs’
Goldman Sachs reports lower second-quarter earnings
July 20th, 2010
Before You Invest Goldman Sachs shares tumbled in pre-market trading after the company reported earnings that beat Wall Street views, but revenue came in shy of what analysts had been expecting.The financial giant said its net income was 78 cents a share in its second quarter, compared with $4.93 a share this time last year.Excluding one-time items, Goldman earned $2.75 a share, topping analysts’ estimates.Sales for the most recent quarter reached $8.84 billion, down from $13.76 billion in the same period last year.Analysts who follow the company projected Goldman Sachs to earn $2.08 a share on revenue of $8.94 billion.Last week Goldman resolved a major headache by paying $550 million to settle the SEC case. The fraud charges stemmed from Goldman’s marketing and packaging of the Abacus collateralized debt obligation.Weakness in its trading and investment banking divisions also weighed on earnings.Goldman said earnings were also impacted by a $600 million expense related to the UK tax.”It’s a pretty significant slowdown in their overall business: Investment banking revenue was down 36 percent year over year, and fixed income, currency, and commodity trading was down 35 percent,” said Walter Todd, portfolio manager at Greenwood Capital Associates.
Goldman Settles With SEC
July 16th, 2010
Before You Invest “Today’s settlement sends positive message of deterrence and accountability,” said the SEC’s director of enforcement, Robert Khuzami.Goldman Sachs agreed to pay $550 million to settle civil charges that it duped clients by selling mortgage securities that were secretly designed by a hedge-fund firm to cash in on the housing market’s collapse.Goldman agreed to pay $550 million to resolve allegations that the company misled investors who bought subprime mortgage-related securities made by Goldman.
UBS re-Files Highland Capital CDO Case
July 2nd, 2010
Before You Invest UBS is re-filing its lawsuit against distressed hedge fund firm Highland Capital claiming the firm did the Swiss bank out of $686 million in a CDO deal. The new case, filed Monday in New York State court, is reminiscent of the SEC’s case against Goldman Sachs over a CDO deal gone terrible.
Waddell is mystery trader in market plunge
May 15th, 2010
Before You Invest (Reuters) – A huge mystery seller of futures contracts during the market meltdown last week was not a hedge fund or a high frequency trader as many have suspected, but money manager Waddell & Reed Financial Inc, according to a document obtained by Reuters.Waddell sold on May 6 a large order of e-mini contracts during a 20-minute span in which U.S.
Probe of US Banks Continues
May 13th, 2010
Before You Invest U.S. authorities are expanding their probes of past mortgage securities deals, with New York’s attorney general opening an investigation into whether eight banks misled rating agencies, a source familiar with the matter said.New York Attorney General Andrew Cuomo’s office on Wednesday served subpoenas on four U.S.
4 Big Banks Score Perfect 61-Day Run
May 12th, 2010
Before You Invest By ERIC DASHIt is the Wall Street equivalent of a perfect game of baseball — 27 up, 27 down, the final score measured in millions of dollars a day.Despite the running unease in world markets, four giants of American finance managed to make money from trading every single day during the first three months of the year.Their remarkable 61-day streak is one for the record books.
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