Trumbull, Mark. "Goldman Sachs $550 million settlement a 'stark lesson' for Wall Street." Christian Science Monitor 15 July 2010: N.PAG. MasterFILE Premier. EBSCO. Web. 7 Nov. 2010.
Goldman Sachs was forced to pay a $550 million fine for misleading investors to buy securities which were thought to be falling in value. After the case was settled the price of Goldman-Sachs stocks rose immediately. The SEC intends to use this case as an example that they are cracking down on corruption on Wall Street. If nothing else this case will force Wall Street firms to have staff which are more educated on the law and aware of when corruption is occurring. The securities were, ”Synthetic collateralized debt obligation (CDO)” which are securities in which some people will benefit if they do well, while other investors will suffer if they do well. The SEC is also conducting a review of Goldman-Sachs as a whole to detect any other corruption in the company. This is vital to my project because I need to know the reasons they were breaking the law. Also, I need to know the details of the punishment from the SEC and how the court dealt with Goldman-Sachs. My next research step is to figure out what laws exactly they violated and who is at the top of the company who was running this corruption.
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