Annotated Bibliography 2

Lieberman, David. "SEC is locked in a stare down with Goldman Sachs." USA Today n.d.:                             MasterFILE Premier. EBSCO. Web. 7 Nov. 2010.

The SEC is using this investigation as a basis to further investigation of other companies such as Citi, UBS, and Bank of America.  Goldman-Sachs is worried about its reputation and fears losing customers due to the negative publicity brought about by this scandal so they are afraid to cut any corners to make a little extra money.  The company says they continue to work with the FCIC and provide them with any information which they ask for in the investigation.  Goldman-Sachs failed to tell their investors that several of the securities which they were investing in were bet on to fall by a hedge fund manager.  They deceived their investors and that is the reason for this investigation.  After the housing market collapsed, the hedge fund manager made $1 billion when Abacus (the securities) tanked.  Goldman denies doing anything wrong, saying they were selling to “seasoned investors” (Lieberman 1).  The SEC is taking advantage of this case to show its strength and that it is able to punish even the biggest firms for illegal actions.  This article gives many details on the punishment of Goldman-Sachs and the action of the SEC throughout the case.  The next step in researching would be to figure out specific laws which were violated by Goldman-Sachs.